Turn Credit Report Insights into Lending Opportunities

Credit unions are always looking for more lending opportunities in order to best serve their members, and their credit report and lending history are both key indicators as to areas your credit union could explore. One area that is key to consider is the auto industry.

The economy has come a long way since the Great Recession, and the auto industry, in particular, has been thriving. We've also seen a surge in auto loans with this increase in activity, which is great news for credit unions. However, the auto loan space remains a competitive market, and you may find your credit union struggling to find borrowers when countless banks and financial institutions are offering the same service. In this case, an effective auto loan recapture program may be the solution you've been searching for. In this article, we'll define auto loan recapture, describe the many benefits, and introduce a special platform to help you pinpoint prime loan opportunities.

What Is Auto Loan Recapture?

Auto loan recapture is a targeted plan where credit unions identify trustworthy borrowers who have financed a vehicle somewhere else. They then utilize a proactive marketing campaign, typically involving direct mail and outbound calls, to attempt to persuade these borrowers to refinance their car at their CU.

The Benefits of an Effective Auto Loan Recapture Program

Every member racks up annual expenses for their credit union, from account servicing to postage. Using auto loan recapture is a great way to acquire more of their business. Here at FLEX, we've partnered with an award-winning fintech company, SavvyMoney, whose analytics platform identifies loan opportunities for users based on their credit profile and lending criteria, which means CUs spend less time identifying leads and more time helping users find savings.

Overall, auto loan recapture programs can improve ROI and deepen existing member relationships, which can ultimately lead to improved member retention. And with the help of platforms like SavvyMoney, credit unions can offer a more seamless auto loan experience for members, while streamlining the CU's process of finding leads.

How To Get Started

1. Determine Your Member Group
   Pinpoint the group of members you want to target by either obtaining a list from your member base or buying one from a third party. Whatever route you choose, make sure your list is well-defined, as the more specific it is, the better your response rate and ROI will be.
2. Provide a Compelling Offer
   Capture members' attention with a clearly communicated offer that's valuable, convenient, and all-around attractive. A few possibilities include a lower interest rate or pre-screened and pre-approved loans.
3. Be Prepared
   Once the inquiries start coming in, you'll need to have adequate staff to take and make calls, conduct follow-ups, accept and submit applications, and complete other administrative tasks. If you need extra help in this area, you also have the option to outsource.

Final Thoughts

Your CU doesn't have to keep losing member auto loans to competitors. With an effective auto loan recapture program in place, you can start boosting your ROI while simultaneously aiding your members with vehicle refinancing. To be successful, remember to target a well-defined list of members, make a compelling offer, and either outsource or prepare an in-house staff to take care of inquiries.

At FLEX, we can help credit unions and their members by providing targeted lending campaigns, valuable and easily-accessible insights, and even pre-approved loan offers. If you're interested in learning more about how this new FLEX and SavvyMoney partnership can help your CU thrive, we invite you to download our eGuide today!