Do you try to keep your finger on the pulse of changes in the world of financial marketing? Here are articles we've authored, along with other interesting and helpful information to help keep you on top of what's happening.

New Equity Accounts – Targeting Customers

Seasonally, it is always a good marketing idea to promote new equity line/loan accounts to existing customers who don’t currently have one. The key is targeting homeowners who are likely to open an account.

WordCom’s MicroModel approach uses data from existing customers that have an equity line/loan and builds a profile of them by appending over one thousand demographic, behavioral and lifestyle attributes. It then uses the constructed data profile to find other customers that look similar to the equity account holders.

Understanding the likelihood of meeting loan underwriting standards for the bank can be a helpful targeting tool as well. WordCom’s RiskIQ can target customers using a FICO-like risk proxy applied on a zip+4 geographical basis. Further targeting can involve product propensity model scoring. Used together, modeling efforts are critical in targeting customers for new equity accounts.

Generating new equity loan/line balances remains a vital marketing goal for most institutions. Promoting increased HELOC usage in the spring is an effective strategy towards that objective. Targeting existing customers for new equity account openings will also help increase loan balances.