For credit unions and smaller banks in North America, the challenge of how to compete with their bigger counterparts is a constant and pressing matter. The pandemic and associated economic uncertainty have made the landscape for card lending even more challenging, with the need to shape an effective strategy for engagement with all of their customers. Bigger banks have an advantage as they are able to leverage greater resources to attract new customers and extend their relationship with existing ones, through new product offers, segmented effectively, and targeted to gain the most value.
For many of these smaller players a partnership approach can be beneficial by leveraging resources and solutions made available through a technology partner. In general, the latest software solutions are expensive and in many cases beyond the reach of organizations of this size, which is where a technology partner can help. Financial technology providers can service these organizations by extending their suite of offerings to include prescreening software solutions that provide access to the latest in data and analytics, to deliver smart and personalized campaigns aligned to customer risk.
Many credit unions and smaller regional banks already have an existing relationship with a partner that include solutions to help them with business challenges such as fraud monitoring, risk profiling and customer communications. These solutions provide great benefits once an account has been originated, however they lack effective tools for the acquisition stage of the lifecycle. This is where the latest prescreening solutions can help by offering easy-to-access, cloud-based solutions that provide the necessary tools for personalized and targeted customer campaigns.
Today’s prescreening solutions are very manual in nature, typically involving a list processing agreement with a credit bureau. The process requires the technology provider or financial institution to collect customer data and send it to a bureau, the bureau then processes the data and returns prescreen records for campaign execution; this process is labor-intensive and cost-prohibitive. Also, existing prescreen solutions offer extremely limited and inflexible campaign options, meaning that organizations are locked into set cadences, with limited scope to execute campaigns, and usually only at pre-determined times.
However, by utilizing the latest marketing automation software solutions, organizations can increase campaign effectiveness through better use of data and analytics, and more flexible tools to execute targeted campaigns. These solutions are able to identify credit card targets, determine offers and execute campaigns, and find prospects or customers that are most likely to respond to card offers, will have a higher lifetime value, and are less likely to default.
Technology partners can help their clients to gain access to the latest in prescreening solutions, for example by deploying PrescreenCentral from FICO and Equifax. The solution integrates Equifax Consumer Credit Information and FICO risk decision management technology with marketing campaign automation and execution. These capabilities combine into a single cloud-based solution for personalized prescreen acquisition and expansion campaigns, that can offer technology partners and financial institutions alike the ability to gain a competitive advantage in a challenging market.
To find out more about how PrescreenCentral can benefit both FinTech partners and financial institutions alike, read the new executive brief.
Learn more about PrescreenCentral.
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