Although the mortgage industry has grown substantially during the pandemic, auto lending has lagged behind. With fewer people buying cars, credit unions will need to find creative ways to attract new auto loan members in the year ahead. If you’re looking to get things back on track and increase your revenue in 2021, here are some tips that can help.
Attracting and Retaining New Members in 2021
These strategies can help you create a better member experience and attract new members in the new year.
1. Launch Financial Education Resources
Creating financial education resources is a great way to give back to your members while increasing revenue.
Many Americans lack financial literacy and are grateful to financial institutions that provide them with the guidance they need. Nearly 20% of consumers even said that they would bring more business to their bank or credit union if it offered personal finance resources and advice.
Studies have also shown that financially literate consumers utilize financial products, like savings and investment vehicles, at higher rates, so it’s worth taking the time to develop educational programs and resources.
2. Start a Referral Program
According to Nielsen, 92% of customers say they trust recommendations from friends and family more than any other type of advertising.
Starting a referral program is a great way to encourage your existing members to spread the word about your credit union. Offering a $25 or $50 incentive will increase the number of sign-ups without raising your member acquisition cost to unsustainable levels.
3. Enable Members to Self-serve
Believe it or not, the majority of people prefer self-service options over interacting with customer support. When troubleshooting problems, 67% percent of consumers said that they’d rather use the resources on a company’s website than wait on hold for customer service.
Adding a knowledge base to your website will enable members to get the information they need to complete their auto loan application even outside of business hours. Creating technical support documentation may also reduce the number of calls you receive, allowing you to operate with a smaller staff and reduce your costs.
4. Embrace Financial Technology
Online banking was on the rise before the pandemic but has experienced an even bigger surge due to quarantine measures. According to Fidelity National Information Services, mobile banking traffic increased by 200% in April.
Even after the pandemic ends, many consumers don’t plan on returning to in-person banking. In a survey by Novantas, only half of the respondents said they’ll visit their bank’s physical branches post-COVID.
Consumers expect the same frictionless experience online that they’d get at a physical branch, so updating your online banking and lending platforms to increase their efficiency will be key to attracting and retaining members in 2021.
Our, 1-Lending, loan origination software utilizes the latest cloud-based technology to streamline your lending process and shorten approval and funding times. Get in touch with us today to learn how our software can help you provide a better digital experience for your members in the new year.