Customer Acquisition For Financial Institutions In 4 Easy Steps

With the recent turmoil within the financial industry, customer acquisition has grow to more important and more challenging to financial institutions. Within the face of economic uncertainty and increased competitive and regulatory pressures, these institutions are extremely focused on increasing profitability through new account growth. However, changing consumer behaviors are creating it more difficult than ever for financial institutions to grow their portfolios without jeopardizing their credit risk standards. Here are 3 easy ways to help increase customer retention, acquisition, and satisfaction and decrease the risk to your institution:. Provide good customer service.

Whether they can be getting their carpets cleaned, trying to discover an unique pair of running shoes, or receiving note of for a credit product, clients are always impressed with good customer service. This does not stop at greeting them by name and wishing them pleasantries as they leave; this involves going deeper and definitely knowing the wants regarding the customer and catering to those as specifically as possible. This means creating consistent offers that are relevant to the customer, evaluating which credit products they should most likely be interested in, and performing all tasks in a timely, accurate manner. Due to the fact that the offers shall be catered to individuals they can be more likely to be accepted, increasing the wallet share regarding the institution. Broaden your credit sources.

Due to the downturn within the economy, many consumers experienced a decrease in their credit worthiness, neither by their own decisions or events that were out of their hands. These with unemployment or financial institutions rescinding credit lines that consumers held but did not regularly use. Along with the unexpected turmoil within financial institutions, consumer behavior has radically changed and predictions for the future should no detailed be based solely on historical data. Instead, financial institutions can gain an improved view of consumers by receiving note of at alternative data. Alternative credit data is consumer details relating to financial the past that does not return from one regarding the 3 traditional credit bureaus.

This data includes a many different variations of sources ranging from telecommunications and utility bills to payday lenders and confirm cashers. These are sources that exhibit financially responsible behaviors but are not currently included in traditional credit worthiness evaluations. Not only those affected by the economy benefitted by this, the use of alternative data means that no file or thin-file consumers should be approved for credit like a good risk, even if the traditional credit sources have little or no information. Make your institution synergistic. Different lines of business throughout an institution collect different consumer data, and oftentimes, this data stays within each line of business.

Separate files are maintained, duplicate data should be collected on the similar to customer, and the lines of business shall not have knowledge of if the customer even has another account. By sharing details throughout the lines of business while still maintaining lone processes, the institution shall be can gain a more holistic view regarding the customer and make offers that are more relevant and more likely to be accepted. Not only shall the picture be more comprehensive, but this acts as an more primary data source to look the current behavior regarding the consumer, reflecting whether or not they shall be a good credit risk.