Financial institutions must constantly be on the lookout for ways to maximize profitability. One of the most effective strategies is to prioritize lending. As the Federal Reserve begins to lower interest rates, financial institutions have an opportunity to boost lending activity by offering refinancing options and rate discounts. Leveraging data insights and financial services marketing automation allows banks and credit unions to personalize loan recommendations, giving them a competitive edge.
By analyzing account holder behavior, such as payment patterns and loan maturity dates, financial institutions can identify the most suitable lending products for each account holder. This data-driven, full funnel marketing approach enables banks and credit unions to craft targeted campaigns to drive engagement throughout the borrowing journey.
Here’s an overview of the key marketing channels that can be used to grow loans:
Email Marketing: Personalized email campaigns can target account holders with lending offers based on their needs and behaviors. Emails can provide educational content, promote special rates, or highlight the benefits of loan products.
Display Ads: Display advertising can raise awareness of the financial institution’s competitive rates and encourage account holders to explore loan options. Retargeting ads can re-engage account holders who have previously shown interest in loan products, keeping your institution top-of-mind when they are ready to borrow.
Digital Banking Solutions (Mobile and Desktop): The institution’s digital banking platform is a powerful channel for promoting loan products. Personalized in-application (app) notifications, banners, and offers can drive engagement from just browsing to applying for a loan.
To drive loan growth, financial institutions can focus on data tags that highlight lending opportunities, and then deliver personalized messaging to nurture those opportunities through financial services marketing automation.
Here are a few examples of data tags you can use to target account holders with loan offers:
Data-driven full funnel marketing can open the doors to achieving your lending growth goals. For example, let’s blend the data tags and full funnel marketing to drive HELOC utilization.
A campaign targeting account holders with low HELOC usage can include a series of personalized emails encouraging them to access available funds for home improvements. Display ads can complement these efforts by reinforcing the messaging as account holders browse the internet.
In-app notifications within digital banking solutions can provide direct access to initiate additional draws on their HELOC, creating a digital pathway for account holders to take action.
Financial institutions that adopt a full funnel marketing approach can effectively support the borrowing needs of their communities while optimizing their lending portfolios. In 2023, financial institutions using our financial services marketing automation platform achieved $1.8 billion in HELOC lending, $1.7 billion in mortgages and $1.4 billion in consumer auto loans.
These successes highlight the power of a data-driven full funnel marketing strategy to boost lending growth.
