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Analytics Are the Key to Gaining Customer Responsiveness for HELOC

June 15, 2018  //  BY Team DataTree

What is customer responsiveness? Within the credit union financial sector, an area that has long done well to create a member-oriented, positive customer satisfaction level, this could be the key to securing a higher number of closings on HELOCs in the highly competitive market. In short, companies lack customer responsiveness when they do not act fast enough or effectively in providing for the needs of the consumer. Companies miss deadlines. They provide the wrong type of service. They don't adapt to meet customer needs. The same applies to the HELOC industry. If your credit union is not meeting customer responsiveness goals, it's missing its marketshare. 

The Complexities Surrounding HELOC Origination

Many factors are working against credit unions and other financial institutions when it comes to securing HELOC market share. The problem lies in the complex financial scenario playing out:

  • Consumers are less willing than ever to overextend their credit and especially their home equity portfolios.
  • Lenders face new constraints on lending.
  • The economy is still improving.
  • The most likely borrower for HELOCs are very different.

Addressing these concerns can be very challenging. However, a recent survey on HELOC shows that with data and analytical approaches, it may be more possible than ever to meet these new challenges.

To improve customer responsiveness, lenders need to provide a more streamlined process. Using data, this is possible. Credit unions that use analytical information that's readily available to them can bring members that may qualify for HELOCs to the forefront, listen to them, meet their needs, and overcome many of these limitations.

For example, using DataTree, it is possible to source a great deal of important information necessary for the origination process. By utilizing current credit union members, it is possible to gather property value (and potentially equity value) along with title information to determine who the most likely borrowers are. It is then possible to provide the tools borrowers need and want to take advantage of offers.

The key to securing more HELOCs in the branch environment is meeting the customers' needs before they become concerns. By doing research and gathering data before contacting members, it's better to target borrowers based on available equity and other key qualifications. Additionally, credit unions can create customer responsive digital means to interact with customers, provide education on equity benefits and availability, and guide the borrowing decision with reassurances.

Credit unions will need to rely on data to improve customer responsiveness and marketing for HELOCs. Waiting for members to walk into a branch to request these loans and lines of credit is unlikely to be beneficial. Rather, tailoring and modify marketing and outreach to well-qualified members will begin by using data. This also speeds up origination and improves member satisfaction across the board, improving the credit union's ability to meet member needs on an ongoing basis. 

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