What percentage of your members have only a checking/share draft account? How many members have indirect auto loans through you, but nothing else?
Obviously, these members aren’t going to help you grow your credit union much.
Not without a nudge, at least.
But what would a nudge look like? We have an idea…
Actually, it’s Array’s idea. More on that later.
Indirect vs. Direct Lending Woes
Whereas direct lending is both more profitable and typically indicates a strong existing relationship with your credit union…
Indirect lending just shows your credit union has a better relationship with a dealership than the buyer.
In our opinion, there’s nothing wrong with “indirect members.” They contribute to your income and loan portfolio. They grow your credit union.
But often, once they’ve paid the loan, they’re gone.
No more growth. No more relationship. No more opportunities.
Turning Indirect Members into “Real” Ones
Of course, indirect auto loans are still valuable. Yet perhaps more valuable than the loan is the opportunity to acquire a new member.
You may be familiar with CreditWise, Capital One’s credit tracking and offers engine. Or maybe Credit Journey, the counterpart from Chase.
These apps embed in online banking portals and mobile banking apps. They track the user’s credit score and what’s affecting it. It also shows users their credit score, updated weekly.
Here’s the good part:
They then send targeted offers to their customers based on their credit profile.
Credit card offers? Check.
Savings or Money Market account invitations? Check.
Car or mortgage loan prequalifications? Check and check.
This is the strategy by which these major institutions increase customer product saturation.
And it’s what Array is doing for credit unions now.
Array does a lot more than just turn single-service members into full, engaged members. They were clear about that when we caught their demo.
But we know how common single-service members are. To us, any way to bring members deeper into the credit union is a major driver.
Array embeds widgets into digital banking systems. The widgets help members understand their credit and explore relevant offers at their credit union. All offers are built off of the member’s credit profile, so they’re already individualized. Certainly, this drives product saturation…
But it also drives true engagement.
Checking one’s credit makes members think more often and more critically about their financial health and goals. It also shows them what’s possible with their current—and projected future—credit profile.
That’s the kind of thing that keeps members logging back into their accounts!
Oh, and it looks great and modern. We’re all about modernizing the credit union experience. So yes, we’re a little biased there.
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