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Diamond CU uses loyalty program to grow auto loans
BOCA RATON, Fla. (4/14/11)--Through Transact Information Services’ Loyalty Assurance program, Diamond CU is leveraging credit inquiry data to strengthen member relationships and build its auto loan portfolio. Recently launched as a cross-selling solution for credit unions, Loyalty Assurance uses credit inquiries to identify members shopping for products, including auto loans, credit cards, mortgages and installment loans, within a credit union's portfolio. The program identifies cross-selling candidates in near real time. “The best indicator of a member who is truly in the market for a financial product or service is a credit inquiry on his or her credit report,” said Ben Waldshan, president of Tranzact Information Services. “Waldshan when members consent to have their credit histories pulled, it’s a near certainty they are prospects for loan product. Loyalty Assurance flags this activity within 24 hours, giving credit unions a cross-selling opportunity at a critical moment in the buying process. In three months, Diamond CU, a $358million assets, Pottstown, Pa.-based credit union, generated $277,000 in auto loan originations through Loyalty Assurance. A consistent and timely follow-up process has been key to Diamond’s initial success with the Loyalty Assurance program, according to Lori Levengood, vice president of lending. “We reach out to our members as soon as we are alerted that an auto loan inquiry has been posted to their credit report, using a combination of outbound calls, direct mail and e-mail, Levengood said. “Understanding that we have a short window of time to capitalize on these auto recapture opportunities, we reach out as quickly as possible to ensure we maximize the number of loans we are able to close. The credit union has contacted about 35% of the members identified through the program, converting 11% into auto loan sales, according to Levengood. Loyalty Assurance also prescreens members for credit worthiness, a process that can improve conversion rates, according to Waldshan. “Leveraging our multi-bureau prescreen credit marketing platform, we can ensure members with credit inquiries also meet a credit union’s specific qualification parameters,” Waldshan said. “For example, credit unions can establish both minimum and maximum credit score thresholds as part of their member qualification process … allowing them to zero in on the ideal candidates for their most competitive and/or profitable products.” Diamond CU has has cross-sold other products and services using the data pulled with Loyalty Assurance, including credit cards and signature loans. “Once we have pulled our members’ credit reports, we can review their overall financial situation to identify additional products and services that will meet their needs,” said Levengood. Tranzact Information Services offers credit unions a complimentary analysis that details historical credit inquiry activity within their membership. Outlining the number and type of inquiries, in addition to the number of members who would meet the qualification parameters, this free evaluation offers credit unions insight into the cross-selling opportunities that exist within their membership.


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