Tech Time: A lending analytics case study

Interest rates have steadily risen over the last year, and the Federal Reserve just hiked them again. These steep rates in conjunction with inflation and the possibility of a recession have made consumers leery about taking on loans, making loan marketing for credit unions more challenging and important than ever.

$66 million Lanier Federal Credit Union, Oakwood, Georgia, experienced the importance of loan marketing firsthand. Even while maximizing cost savings and focusing on the financial health of its members, the credit union lost members to predatory lenders. To address this, Lanier FCU implemented digital tools, including SavvyMoney, to leverage credit and share-of-wallet data to drive a successful educational auto lending campaign.

Through implementing a credit score solution, Lanier FCU was empowered to improve member relationships through digital personalization and real-time analytics. Data-driven insights delivered the right offer to the right prospective borrower at the right time.

Data = Growth Opportunities

Making data-backed decisions is paramount to gaining and retaining members and outperforming competitors. A data-driven business uses data analysis to understand and  predict what customers want and proactively make them relevant and attractive offers. Consumers who receive personalized offers are more likely to remain loyal. Data analysis can also identify unhappy members so credit unions can intervene before the member leaves. In the digital age, data collection and analysis are a financial institution’s best friends.

 

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