dataflex credit alerting and prospecting

Credit Alerting & Prospecting Leverage Credit Inquiry Data to Improve

Acquisition, Retention and Lifetime Value

Credit Bureau Data

• Purchasing Actual Data from the Credit Bureaus

• All Three Bureaus

– LKCS has relationships that enable us to provide data from any or all of the three major bureaus.

– Not all bureaus have information on all people – it is important to source data from multiple bureaus.

– Up to 70% increase in leads when pulling data from three bureaus as opposed to one.

– No additional cost to obtain data from multiple bureaus.

Data Aggregation Overview

• LKCS multi-sources credit and non-credit data creating a very unique compilation of data.

• Financial Services-centric and significant incremental advantages.

Credit Prospecting vs. Credit Alerting

• Credit Prospecting – Use credit data PROACTIVELY.

– Market to prospects or existing account holders with specific demographic and/or credit-based traits.

• Credit Alerting – Use credit data REACTIVELY.

– Market to prospects or existing account holders actively seeking a loan elsewhere.

Using Credit Data

• Specify Your Lending Guidelines – Only market to prospects and account holders meeting your

specific credit criteria (ie – FICO Score, LTV, Credit History, etc.).

• Firm Offers of Credit – Credit data can only be used when you are extending credit

offers. More on this later…

– Must be compliant with the Fair Credit Reporting Act.

– LKCS helps with this!

Firm Offers of Credit

• When using Credit Bureau data, marketing materials must include:

– Indications that the recipient is pre-selected, pre-screened, or pre-approved .

– Terms and conditions; eligibility requirements.

• Including why credit may not be extended after all.

– Minimum dollar amount for which the recipient has been qualified.

– Opt-out notice and disclosure.

Credit Prospecting

Member/Customer Acquisition

Credit Prospecting

Credit Prospecting

• Available for any pre-screen marketing campaigns: – Auto Loans – Mortgages – HELOCs – Auto and Mortgage Refinancing – Credit Cards

• Pre-screen your existing account holders or reach out to credit-qualified prospects in your area(s).

Credit Prospecting Campaigns

• Extend pre-approved offers of credit to account holders and non-account holders based on actual credit score information.

– Set criteria to identify recipients that will qualify for a loan offer based on your specific pre-screen requirements.

– Send direct mail loan offers, e-mail offers, statement-based campaigns and make outbound phone calls to qualified account holder and non-account holder prospects.

– And, of course, you can utilize the DataFlex reporting engine to measure the results of these campaigns!

Potential Credit Prospecting Campaigns

• Leverage credit data to generate loans. • These are just a few EXAMPLES.

– Be creative – brainstorm campaigns that make sense for your institution.

• ADJUST as needed. – Adjust the credit parameters, etc. as needed to fit your

lending guidelines and goals.

Potential Campaigns – AUTO REFIS

• Lease Expirations – Fico Scores 640+ – Exclude auto lates/repo’s – 1-3 months left on their

lease

• Loan Payoff – Fico Scores 640+ – Exclude auto lates/repo’s – 2-3 years left on their

loan

Potential Campaigns – MORTGAGE REFIS

• HARP Programs – Fico Scores 640+ – FNMA/Freddie Flags – Mortgage Balance $100K+ – No FHA/VA/reverse

mortgages – Age of loan 13-72 months – No reverse mortgages – 85-105% or up to 125% LTV

• FHA Streamlines – Fico Scores 640+ – FHA Mortgage Balance

$100K+ – Age of loan 13-72 months – No mortgage lates last 12

months – No reverse mortgages

Potential Campaigns – MORTGAGE REFIS

• FHA Prospects – Fico Scores 640+ – Mortgage Balance $100K+

capped at county limit – No current FHA mortgage – Age of loan 13-72 months – No reverse mortgages – Up to 95% LTV

• Conventional – Fico Scores 680-720 (or to

750 if possible) – Mortgage Balance $100K+ – No FHA/VA/reverse

mortgages – Age of loan 13-72 months – Up to 95% LTV (higher

LTV’s will respond)

Sample Campaigns

• The Offers:

First Time Home Buyers Offer – Sent to Renters – Qualified by FICO

Score and other credit parameters

Revolving Debt Reduction Offer – Sent to

Homeowner’s – Available equity

over $xx,000 – Revolving debt

over $xx,000 – Qualified by FICO

Score and other credit parameters

Home Equity Offer – Sent to

Homeowner’s without YOUR Home Equity Loan/LOC

– Available equity over $xx,000

– Qualified by FICO Score and other credit parameters

Sample Campaigns

• Direct Mail Postcard

First-Time Home Buyers Offer

Sample Campaigns

• Personalized Letter or Statement Cover Letter

Rev

olvi

ng D

ebt

Red

uctio

n O

ffer

Hom

e E

qui

ty O

ffer

Sample Campaigns

• E-Mail Marketing

Firs

t Tim

e H

ome

Buy

ers

Off

er

Home Equity Offer

DataFlex Credit Alerting

Member/Customer Retention and Cross-Sell

Credit Alerting

Traditional Loyalty Programs

• “Onboarding,” matrix marketing and loan recapture campaigns.

• Not based on actual credit data.

• Demographic and behavior models used.

– Economic Stability Indicator

– Vehicle Intend to Purchase

– Real Property Data (available equity, etc.)

• CANNOT predict the exact timing someone will be in the market for a specific product.

Credit-Based Loyalty Programs

• React with the RIGHT offer at the RIGHT time.

• Gain the ability to reach account holders who may be defecting to your competition in near real time.

• Based on actual credit bureau data.

• Deliver a firm offer of credit to cross-sell additional products at the moment a need has been identified.

Credit-Based Alerts

• Here’s What Happens:

– When your account holder applies for credit ANYWHERE, an inquiry is posted to his or her credit file.

– These inquiries are categorized according to the type of financial product the account holder is seeking: mortgage, auto loan, installment loan, credit card or insurance.

– Your account holder database is cross-referenced DAILY OR WEEKLY with these inquiries and a “lead” is generated each time there is a match with the credit file.

• Respond with a firm offer of credit or insurance immediately after receiving the lead.

Credit-Based Alerts (cont.)

• Select which category(ies) of inquiry(ies) you wish to target

• Leads are then pre-screened using your qualification criteria

– Criteria can be based on numerous attributes including credit score, debt load, etc.

• Daily alerts (Equifax and TransUnion) and Weekly alerts (Experian)

– LKCS provides you with a list of all leads and fulfills any direct mail and/or e-mail offers on the same day.


• We provide credit-based activity alerts from ALL THREE major credit bureaus.

– Close loans that would have gone to other lenders by comparing credit bureau activity each day!

– Monitor and identify your account holders DAILY or WEEKLY for auto loan, mortgage, consumer loan and/or credit card inquiries.

– Set criteria to identify prospects that will qualify for a loan offer based on your specific pre-screen requirements.

– Send direct mail, e-mail and/or statement onserts to contacts whose credit has been checked and meet your pre-screen criteria.

– Provide outbound call lists for your call center to contact these account holders.

Data Available from All Three Bureaus

• Select which of the credit bureau(s) you want to receive data from

– Even though you may prefer to work with one bureau in particular, account holders may be shopping with a company that uses a different bureau

– Benefit from incremental lift by adding additional bureaus.

# of

Inqu

iries


Member/Customer Acquisition

Credit Alerting


• LKCS can provide daily or weekly alerts for non-members/customers in your area that have had inquiries for mortgages, auto loans, credit cards, etc.

• Acquire new account holders who didn’t contact you.

• Specify credit, demographic and geographic criteria to target qualified prospects in your communities.

– Limit to specific counties, towns, zip codes, distance from locations, etc.

– Combine credit criteria with demographic information to fine-tune.

• Leads are pre-screened against your credit criteria and existing account-holder lists.

DataFlex Reporting

• Use the power of DataFlex reports to measure the results of your pre-screen and credit alerting efforts.

• LKCS will incorporate any credit based data you utilize into DataFlex to track individual campaign results.

Sample Reports

What’s the Cost?

• Credit Prospecting – Pricing depends on several factors including:

• Number of records purchased

• Demographic selects purchased

• Credit bureau minimum charges

– FREE List Counts and Estimates

• LKCS will run counts at no charge to determine feasibility and cost of your next pre-screen marketing campaign.

What’s the Cost?

• Credit Alerting – Based on number of account holders and/or prospects

screened each month

– FREE Opportunity Analysis

• We will review your account holder credit activity over the past 30 days and provide you with the following data: credit activity by inquiry type, state and credit bureau, as well as qualification rates using your specific qualification criteria!

Credit Alerting Case Study Results

• Average Loan Size of $150,000 • Front-end and back-end revenue of 2.5%-3.0%

Quantity Monitored

Monthly Mortgage

Trigger Rate

(1% after pass

criteria)

Contact Rate

Contact to Close

Rate

Monthly Number of New Loans

Revenue Per Month

Estimated Credit

Alerting Cost Per Month

Revenue Per

Marketing Dollar Spent

15,000 150 30% 10% 5 $20,625 $1,400 $15

50,000 500 30% 10% 15 $61,875 $3,500 $18

100,000 1,000 30% 10% 30 $123,750 $5,500 $23

SPECIAL WEBINAR OFFER

Sign up for Credit Alerting by May 15, 2012 and receive a

$1,200 annual discount ($100 per month) !

Thank You!

Sid Haas Vice President of Business Development

Direct: 815-220-3904 E-Mail: [email protected]

www.lk-cs.com

dataflex credit alerting and prospecting

Economy & Finance