Today’s uncertain economic conditions and the continuing effects of the COVID-19 pandemic have left financial institutions scrambling to develop and implement consumer retention strategies to drive revenue.
Social distancing measures put in place to help mitigate the effects of the coronavirus have resulted in borrowers across all demographics being far more comfortable navigating digital landscapes. Today’s tech-savvy consumers expect convenience, personalized service, and digital accessibility. Borrowers’ receptiveness to Fintech platforms performing services that have been traditionally entrusted exclusively to financial institutions is a challenge the financial services sector is currently adapting to.
Increasing borrower retention is particularly important as we turn toward an ambiguous economic future. Financial institutions that add value to the lives of their consumers through savvy decision making and marketing, innovative product development, and success tracking are rewarded with loyalty. By forming stronger and deeper relationships with their members, financial institutions are increasing memberships and retaining customers at an impressive rate. In this blog post, we’ll take a look at one group of that often go overlooked when it comes to retention strategies—borrowers with negative account balances.
Top Three Reasons to Retain Borrowers with Overdrawn Accounts
To increase your retention rate, it’s important to look at every aspect of retaining consumers, and one that is often overlooked are borrowers with negative share accounts. Often, a financial institution gives up on this opportunity and is forced to close the account, mostly because they don’t have the resources to facilitate a call out campaign.
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