Credit Union Member Services HELOCs: A Powerful Cross-Sell Opportunity for Savvy Credit Unions


HELOCs: A Powerful Cross-Sell Opportunity for Savvy Credit Unions

home equity line of creditCredit unions are constantly striving to enhance their services for the benefit of their members. One valuable tool in their arsenal is the home equity line of credit (HELOC).

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HELOCs present immense benefits for credit union members while also serving as a lucrative opportunity for credit unions themselves. Additionally, they offer an ideal platform for personalized cross-selling, enabling credit unions to connect with members on a more individual level. This win-win situation arises from members' desire to finance substantial purchases or home improvement projects promptly, while credit unions have the chance to demonstrate their care and support to those who have recently acquired a mortgage.

A Forward-Thinking Approach to HELOCs and Cross-Selling

To ensure a smooth and accurate process that satisfies all parties involved, it is crucial to match the right member with the appropriate offer at the perfect moment. Employing a data-driven approach becomes indispensable in achieving this goal. Such resources prove invaluable in crafting personalized marketing messages that effectively highlight the advantages of HELOCs while addressing each individual's specific financial needs.

These technology-driven solutions serve as powerful tools to help credit unions overcome the obstacles that often hinder the conversion of leads into borrowers, with timeliness being a primary concern. Far too often, financial institutions make the mistake of employing a "hard sell" strategy. They assume that their financial product's merits will automatically appeal to everyone else.

However, not only does this approach fail to yield the desired results, but it als risks creating a cold and impersonal experience for the member—an outcome contrary to the credit union's objectives.

Instead, credit unions must leverage data-driven insights to ensure impeccable timing of each offer. This doesn't imply abandoning the use of urgency in marketing messages. Urgency itself can be a potent motivator, as individuals don't want to miss out on an opportunity that may not arise again for a long time, if ever.

However, rather than reaching out to all members indiscriminately to promote the advantages of HELOCs, it is wise to start with recent mortgage borrowers or individuals known to have imminent major purchases or projects. Relying solely on the merits of the financial product will fall short—effective marketing messages must also carry significant weight.

Utilizing the behavioral and financial data generated by members allows credit unions to tailor-fit the lead with the lending opportunity. This tailored approach is not only integral to unlocking the benefits of HELOCs for all parties involved but also a pivotal aspect of the cross-selling process as a whole.

Home Equity Management: The Advanced HELOC Solution for Credit Unions

Ultimately, the conversion of leads into borrowers is the ultimate goal for credit unions, and HELOCs provide an excellent opportunity to achieve precisely that, establishing a mutually beneficial situation. To delve deeper into this concept, FLEX has developed a comprehensive HELOC guide that covers all these aspects and more. Click the button below to download the guide and embark on your journey.

FLEX Home Equity Management


Preston Packer

Written By: Preston Packer

Executive Vice President | CMO at FLEX Credit Union Technology
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