Increase Engagement with Consumer Banking Solutions Powered by Credit Data

In crafting pre-qualified and pre-approved offers, financial institutions (FIs) must analyze an abundance of data, from sorting through third-party vendors’ lists, to screening credit reports to determine which account holders are good prospects for a given loan offer. Future-focused FIs are opening up new revenue possibilities by using data analytics in banking to discover deep insights that enable banks and credit unions to personalize product offers to individual users. Consumer banking solutions that leverage credit data can provide account holders and financial institutions with insights to better understand a user’s financial stature and to find the next best product for their unique needs.

According to J.D. Power’s 2022 U.S. Retail Banking Satisfaction Study, “78% of respondents would continue using their bank if they received personalized support, but just 44% of banks are actually delivering it.

Inform consumers’ financial picture with credit score insights

The first step on the pre-approval journey often involves the account holder’s credit score. According to PYMNTS, 63% of consumers check their credit score monthly. By seeing a quick snapshot of where they stand, account holders are able to feel more confident about making significant financial decisions. When account holders see their score needs improvement to enable them to realize their financial goals, and are supported in doing so with digital banking platform insights and tools, they often become more engaged and feel empowered to improve their financial health.

Personalized banking powered by data

Pulling pre-approved offers from your FI’s credit bureau for account holders who meet the criteria is an established practice, but how you activate that data could make a huge difference. Through your FI’s digital banking platform, each account holder can be matched with offers that align with what they are approved for and what best fits their financial situation. Through these marketing methods, account holders can feel like they are being spoken to effectively and purposefully.

• Tailored messaging. If your FI wants a message to really resonate, a templated pre-approval letter may not be the right method of delivery. If a direct-mail campaign is implemented, ensure there is a custom digital aspect to it—like sending the account holder to a custom URL to review their offer and complete their application.
• Educational tools. Don’t make account holders wait around for information. By using a credit score simulator and offering financial literacy materials, financial institutions can take the question marks out of the equation and enable users to test out different “what if” scenarios to determine their best borrowing strategy. 
• Digital longevity. Account holders can digitally access their FI’s digital banking platform 24/7—make sure they’re seeing information that’s relevant to them. By adding multiple touchpoints that range from a nurture email campaign to targeted mobile ads, it ensures their loan offer is top-of-mind and relevant.

Data analytics in banking for operational efficiency

Showcasing relevant pre-approval offers not only brings value to the account holder, but to the FI by increasing share of wallet and retention with benefits such as:

• Speeding up the process. Through your digital banking solution, ensure consumers have the information they need right in front of them. Automation can enable applications to move quicker – simplifying the entire process and elevating the user experience.

• Providing a holistic account view. By leveraging a data-driven consumer banking solution, your FI’s team can track campaign progress and measure share of wallet, while gaining deeper insights into credit score improvement patterns among your account holders. 

A solution that easily integrates within your digital banking platform can increase engagement within your FI’s website or app. This opens up further opportunity for users who are not only pre-approved, but also those whose behaviors indicate they may be in need of a product: such as those who click on a page, perform a specific account activity, or achieve particular account statuses. 

As your account holder’s trusted FI, a winning combination is to provide digital tools for increased accessibility, the education to understand pieces that impact each individual consumer, and customized products and offers.

Ready to activate data analytics in banking to better serve your consumers?
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