Even though our economy is still in recovery, the progress it’s made during the past few years, along with the ability that we have as Americans to adapt to changing circumstances, has made it seem like the 2008 recession happened a lifetime ago. Most people will never forget what our country went through five years ago, but many have put it behind them and are moving on, getting used to our country’s new “normal.” You can tell by simply looking at the purchasing behavior of consumers today. They’ve regained their confidence and are starting to buy homes, cars, and even non-necessities like RVs and boats. Another indicator is the increasing number of small businesses popping up – people who previously only dreamed of working for themselves are now willing to take the risk and make their dreams a reality. According to the Global Entrepreneurship Monitor (GEM) U.S. Report published by Babson College and Baruch College, “an increasing proportion of the U.S. population believed there were good opportunities for starting businesses, and Total Entrepreneurial Activity (TEA) hit its highest level since the GEM survey started in 1999.”
The result of all of this is that financial institutions are enjoying the healthy rise in auto, mortgage, and small business lending activity. But, just because you’re closing more loans, doesn’t mean your lending strategy is flawless – or even complete.
How is this possible?
When formulating auto, mortgage, and business lending strategies, many institutions don’t take into consideration the one necessity that every single one of their borrowers will need: insurance.
Loans and insurance go hand-in-hand. If you’re not incorporating insurance into your lending strategy, you’re basically giving your borrowers’ money away to someone else, and it’s money that could easily be yours! Think about it – you wouldn’t go to one store to buy cones and then another to buy ice cream, so why make your borrowers do just that when purchasing a car or home?
Offering insurance at loan closing is a simple, cost-effective cross-sell opportunity, and it not only generates revenue for you, but it’s also saves your borrowers the hassle of having to go somewhere else for the protection they need to satisfy their loan agreement.