eAdoption is not a new concept, yet the challenge in switching customers to the paperless movement is still impacting financial institutions' bottom lines. Despite the fact that about 85% of the U.S. population uses the Internet, most financial institutions only average 15%-20% electronic adoption rates, which means that there is much room for improvement. Download this white paper or click on the image above to learn about some of today's challenges that are hurting your bottom line- and how to solve them!
Human touchpoints are being eliminated with continual process automation, giving customers direct online and mobile control over their financial accounts. Tasks that once required a customer to walk into a bank or credit union are now carried out through the touch of a finger on a screen or keyboard. In turn, automation is altering consumer expectations, and marketers are realizing that static content is on its way to extinction.
Hotwire PR’s seventh annual “Communications Trends Report” highlights the fact that consumers expect timely, relevant and personalized content in real-time (think Snapchat, Periscope and Meerkat). This trend shows that customers now expect to feel as though they are receiving exclusive content while being a part of instant communication. This means they will be more responsive to personalized dynamic communications on all branded print and digital documents as well. As a financial institution, now is the perfect opportunity to provide real-time messaging to your customers for retention, cross-selling, upselling, and/or utilizing affiliate advertising.
Dynamic Messaging allows you to present strategic messaging to all customers or a specific target group and use consumer-facing marketing space by targeting account holders with products and services that best fit their needs. There are many ways to incorporate dynamic communications on specific customer criteria, including account balance, zip code, gender, or marital status, to name a few. You don’t have to reinvent the wheel in compiling data because you already have it. Why not use it to increase your bottom line?
Here are some tips on harnessing the power of dynamic messaging on customer-facing digital and print communications:
1. Target to individuals, not groups. Not all customers are created equal, so personalization is key! In a recent survey, only 21% of individuals reported that marketing messages they receive are “usually relevant.” This low percentage provides you with an opportunity to stand apart from all of the usual communications your customer receives on a daily basis by presenting them with messaging that is targeted specifically to their needs.
2. ABC- Always Be Changing. If you’re in sales, I know your first thought at seeing that acronym was, “Always Be Closing.” I think these two sayings go hand-in-hand. A colleague of mine once told me, “A static website shows your audience that your organization is static.” The same principle applies to all other customer communications. If your customers don’t see you moving forward with the times, they will be less likely to respond to your brand’s communications. A good practice is to re-evaluate messaging on a quarterly basis to ensure customers stay engaged.
3. Timing is everything. This ties both of the above points together. Say a customer has JUST opened up a savings account with your institution. Would it be wise to send them a document the following month containing an ad with the messaging, “Open a savings account with us?” No. Instead, maybe it’s time to start sending them ads about an auto or home loan.
The opportunities to speak to your customers on a personalized level without any human touch points involved are endless. As customer communications continue to shift, the importance of dynamic communications will continue to increase. To learn more about dynamic messaging, click here.
As the real estate market experiences historically low interest rates, mortgage industry professionals continue to search for a balance to improve the borrower experience, mitigating risk and netting more profit per loan. That said, borrower education before and during the loan life cycle is of utmost importance because it increases borrower buy-in. Heading into Q2 of 2016, we want to share some informative articles that can be useful when educating potential and current borrowers on today’s mortgage lending market:
1. Freddie Mac’s Home Possible Advantage Program Myths and Facts
A recent HousingWire article outlines 6 myths about Freddie Mac’s Home Possible Advantage program featuring a 3% down mortgage payment option. The article also provides a “flashcard” at the bottom for quick reference of myths and facts.
2. 10 FHA Guidelines EVERY Home Buyer Should Know
This blog post from Inlanta Mortgage covers FHA guidelines that home buyers should be aware of, including down payment requirements, maximum loan amount, and debt to income ratio calculations.
3. Kick-Start Your Real Estate Investment Portfolio Using an FHA Mortgage
One of The Mortgage Reports’ recent articles written by finance and business writer, Mark Henricks, discusses ways an FHA loan can help borrowers purchase their first rental home.
4. 10 Terms Every New Homeowner Should Know
This helpful article posted on Real Estate Talk Boston gives new homeowners some tips on credit repair, as well as important lingo to learn such as fixed rate loan, adjustable rate loan, escrow, and more.
There are many ways to share the above articles, as well as other pertinent information, with potential and current home loan borrowers. A best practice would be to communicate updates and helpful tips via your company website, as well as all borrower-facing digital and print documents.
What are some helpful tips you would share with potential and current borrowers in today’s market?
According to Dealogic, mergers and acquisitions (M&A) in 2015 reached an all-time high with a volume of $4.9 trillion. Companies merge and are acquired for many reasons, including product/service line expansion, consolidation for lower administrative costs, increased profits and even eliminating competition.
Credit unions value reliable document outsourcing vendors that help them reach and exceed their stated goals such as member engagement and retention. Those goals are jeopardized when an acquisition occurs. Below are some ideas to be aware of in the event your statement outsourcing vendor is in the middle of an acquisition:
Mix of Competencies
The idea of an expanded products and services offering is enticing, however, it can easily backfire. Say, for example, a direct marketing company acquires your statement processing vendor. The acquirer may continue to support and expand your document vendor’s products and services, but they may also extract pieces of the original product and discard key tools that have helped your credit union streamline efficiencies. Also, while marketing through business-critical statements can help drive revenue, the acquiring company’s competencies do not include the industry expertise necessary to identify ways of maximizing customer communications through member documents.
Lack of Investment in the Future
As a result of your vendor’s efforts to expand upon their products and services offering, they may be shifting focus away from investing in future tools to streamline efficiencies and improve upon the member experience. While this may not have an immediate effect on your statements, it can impact your credit union’s bottom line long-term by putting it behind the curve on meeting member expectations.
According to Credit Union Journal, 67% of banks report that they are targets of significant cyber attacks daily or weekly. Therefore, third party vendor management is of utmost importance in preventing data compromise. This is especially crucial for your statement processing vendor, as they not only have access to all member data straight from your core, but are also responsible for composing and delivering this data. If data falls into the wrong hands because of a roadblock in your vendor’s acquisition, it will ultimately fall back on your institution and affect compliance, resulting in fees.
Customer Service Falls
Most vendors tout customer service, and yes, many statement processing vendors do excel in this category. However, if a vendor is in the middle of an acquisition, customer service may suffer due to the focus shifting to operational reductions, removing attention from the existing customers’ immediate needs. As a result, you as the customer experience inadequate communications and lack of transparency. It is important to feel comfortable in knowing your questions and escalations will be resolved in a timely manner before the production and delivery of your customer documents.
Wrapping it Up
When choosing a third-party vendor, it is important to do your research. Ask them what their financials look like and if they have any plans of acquisition. While this isn’t 100% foolproof, it can better prepare you to find the right statement processing partner.
Interested in learning more about third party vendor management and how to choose the right statement processing vendor? Click here.
It’s the beginning of March, the last month of Q1 and the month where the spring season begins. As you ramp up for Q2 and the change in season, we want to provide some reasons as to why your business-critical documents need spring cleaning: