The gifts have all been opened, the last party is over. This is when many customers will be looking for cash to help fund the holiday bills. There are simple, easy options to offer them. Communication of the cash-generating offer is all that’s required. Here are a couple of loan outreach programs that will work for your customers—and your institution.
Many institutions are familiar with this approach. In return for a small deferral fee, customers can defer a consumer loan payment for a month, freeing up money after the holiday season. For the customer, the obvious benefit is having less strain on their finances during an already “wallet-crunching” time of year. Instead of making their usual loan payment for the chosen month, that money can now be directed elsewhere.
Consumer loan customers with good loan payment history, terms that still have several months remaining, and monthly payments that are much higher than the deferral fee are the best prospects for the promotion.
For the financial institution, customer goodwill is achieved by helping free up money for them. Plus, additional fee income is earned due to the extended loan resulting in additional accrued interest.
A reservoir of untapped loan potential exists at most institutions, and a targeted marketing campaign can easily unlock it. Equity lines already approved and opened are a rich source of new loan balances. Reminding customers of the credit available to them and how to access it provides motivation for customers to activate their lines.
Starting the new year with additional cash is attractive to most customers. Easy communication programs can help deliver it.