What Can a Successful Auto Refinance Program do for Your Credit Union?
“We could not have imagined having such success with such a small mailing,” says an enthusiastic Martin Fogarty, director of remote delivery at Capitol Credit Union in Austin, Texas. “From 656 members, to generate $1.3 million worth of loans has been great.”
When it comes to auto refinancing, credit unions are losing their market share to banks, explains Ann Farrell, director of portfolio growth at Trellance. “What Trellance is doing with our new program, is pulling that market share back to the credit unions, and the benefits are plentiful – for CUs and members.”
“We are utilizing state-of-the-art data analytic tools to deliver highly targeted messages to the right member at the right time,” Farrell explains. “Filene Research Institute tells us that banks are not offering the 0% offers that they used to — so the recapture rates are really good out there right now, and I think Martin’s success with the program at Capitol this past summer is the prime example of what a customized refi program can do for our clients. We are expecting more and more success stories like Martin’s.”
Follow the Leads
The program from beginning to end is about 60 days long and the benefits are bountiful: Provide your list, Trellance creates the initial mailing, a follow-up, then an email. The CU’s job is simply to follow the leads. And they don’t stop with refi!
The best part is that Capitol’s success wasn’t limited to increasing auto loans. They used a winning cross-promotion strategy utilizing credit score information to customize offers for credit cards, personal loans and more. Fogarty was impressed with the ongoing benefits of the program.
“Once we have that member’s application, we now have a credit score and we are able to mine that credit and identify other opportunities for a win-win: credit cards, personal loans, we even captured several home-equity loans from that list,” he adds. “We really did see a lot of success on the home equity loans through this program. So once, we had that auto loan application, we were able to sell other products to that member too. We knew we’d save the money on the interest and Net Percentage Rate but then we could offer gap coverage, too.”
The Turn-key Solution for Busy Credit Unions
For Fogarty, much of the benefit of the program was the timesaving aspect. “Trellance came along and took over all of the heavy lifting,” he explains. “It’s a turn-key solution. You provide the list, Trellance returns it based on your criteria. They deal with the marketing. They do the mailing. They do all the things you don’t want to do. They make it really easy.
“For us,” he concludes, “it was just a matter of working the leads that come in. They did all the additional work that needed to happen. Our success has been tremendous, and we will continue to use the program because of how successful it has been.”
It’s time you checked in on your own refi program. If you’d like a little boost – or a big one, check out our On-demand Webinar on the Auto Loan Market: Research, Trends and Solutions when you have a minute. Or just give us a call at 888.930.2728. Let us help you customize your own Auto Refi Program and drive off with the profits!
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Boost your portfolio growth by acquiring your members’ auto loans through a data-driven auto refinance program in our next webinar.
