Whether it's loan origination management, member relationship building, loan retention or offering refinancing on existing loans, most credit unions — regardless of size — face customer relationship management obstacles.
But most CUs are also uniquely positioned to gain market share. "Credit unions have a leg up due to the strong relationships they have with their members," said Robin Blatt, director of marketing for Mortgage Returns, a St. Louis-based company that provides web-based automated marketing solutions for more than 300 financial institutions .
Last year, the company earned Mortgage Technology magazine's 10X Award, which honors firms that have had an "exponential" impact on mortgage finance (Mortgage Technology is an affiliate publication of CU Journal).
Blatt said the firm has a "handful" of credit union clients to date, but plans to increase that number in the coming year. And she knows the market well. "I was the vice president of marketing for First Community Credit Union here in St. Louis," she said.
Blatt explained that current clients — including credit unions — are using the TRUE CRM solution, which she noted is a "new concept" in the industry. An acronym, Mortgage Returns customer relationship management solution, TRUE, stands for: total data base management; relevant, automated and targeted marketing, unbiased reporting; and expertise and advice to improve your results.
"The biggest benefit is that we provide marketing ROI," said Blatt. "There is business analysis and reporting so clients can see how much money they spent." The database can track more than 200 details about a respective homeowner's loan. On a daily basis the system then prompts loan managers on whom to contact and why.
Blatt explained that aside from building stronger relationships with members, this approach ensures an opportunity to refinance a loan is never missed. An ancillary benefit is that credit unions can cross sell other products and services.
When asked to provide a metric on how clients have benefited from using the solution, Blatt pointed to the firms "multi-touch program," which on average has resulted in a 12% loan retention rate.
She noted that one-on-one communication and specific messaging is key to retaining members be it a refinanced loan or a new loan.
Mortgage Returns requires a onetime set up fee for the service and credit unions pay a "seat license" fee annually. "The pricing really depends on the size of the credit union," she said adding that the cost covers countless e-mail campaigns that are targeted with specific messaging. These include the credit union's logo, loan officer's picture and other pertinent information associated with the account.
An additional fee is required for marketing campaigns that include hardcopy mailings. "The best solution we have seen from our clients is when they incorporate a few key direct mailings, which physically places information in their hands at their homes, along with e-mail messaging,"
said Blatt.
Security Concerns
Whenever new technologies are discussed at the C-suite level, the sharing of member information is a paramount concern. Blatt understands this worry well, noting that "all of our clients are concerned about security as we are so we have designed a secure system."
For the solution to work, Mortgage Returns' database experts have to access the credit union's existing loan origination system. This process can take 30 to 60 days depending on the size and availability of the credit union. Clients continue to exclusively own all rights to the data, which is backed up and stored on a regular basis.
The team next manages standardizes and integrates all stored loan data stored as well as manages the ongoing data refresh process to ensure data is always current and accessible. The CU is not required to adopt any new software or hardware as the data is virtually hosted at Statements on Standards for Attestation Engagements 16-audited facility.
Blatt noted that there are data exclusions such as Social Security numbers, banking and credit card information. These measures, she said, precludes the opportunity for identity theft.
