ORLANDO-Credit unions at the front of the curve when it comes to using Facebook to make loans are finding members more than "like," the option, they are filling out applications there too, including mortgages.
CUs that are using a solution from Shastic for a loan calculator on their Facebook pages-including Kinecta Federal and Numerica-are giving members an opportunity to use the tool to determine what their monthly mortgage or car payment would be, depending on different criteria.
In the case of Kinecta, some 22% of its members who have visited its Facebook page have used the embedded Calcubot calculator to get a loan-payment estimate.
Those members averaged 1.1 estimates per visit. Of those who have entered very basic information into the Calcubot tool, 3.4% have gone on to fill out an application and of those 40% of the loans were funded by Kinecta.
For many members, the first step is just curiosity. "Most people are not ready on their first interaction," said Joseariel Gomez, the chief executive officer of Shastic, which is based in Berkeley, Calif.. "They often come back."
Members who click on the "Apply Now" button are immediately redirected to the respective credit union's applicable web page.
The secret to the process, according to Gomez, is keeping it simple while also recognizing that "people aren't as much rate-sensitive as they are payment sensitive. They just want to know, 'How much is it?' "
The Calcubot tool being deployed by numerous credit unions now includes a feature that allows Facebook users to seek advice from other people, which leverages a key component of social media.
All You Need To Know
Gomez told Credit Union Journal'sGrow Show that he is somewhat mystified that 40% of financial institutions still aren't using Facebook.
"It's a free resource," he stressed. "If you don't know anything about Facebook, it will probably only take you 20 minutes to set up a page and brand it."
And while the Calcubot calculator is about making loans, the bigger perspective with Facebook is its ability to "generate engagement" when used correctly, according to Gomez. But it takes a bit of work, as that engagement requires frequent and ongoing content updates, he reminded.
"Facebook should be about turning your followers into your advocates, the largest sales force you could ever have at no cost," he told Grow Show.
