Study Suggests Best Student Loan Prospects Are At Home
ATLANTA-Banks and other private student loan lenders should look to their own customers when marketing student loan products, according to a recent study by SYNERGISTICS RESEARCH CORP. titled, "The Changing Student Loan Market."
The consultancy said results reveal banks are the primary private student loan lender. Almost six in 10 (58%) private loan holders obtained their student loan from a bank. However, only three in 10 (29%) of these report having a previous relationship with the lender.
When asked to evaluate what selection features are important to them when choosing a student loan lender, only three in 10 of those who currently have a private student loan or are likely to get one in the next year say having a relationship with the lender is "very" important to them.
"Cross-selling and relationship building are key objectives driving all marketing strategies for financial accounts and services," said Gene Driskill, COO of SYNERGISTICS. "However, analysis of the private student loan market suggests providers are falling short in this regard. Perhaps it is a function of the 'structure' of the private student loan market-direct government loans receiving preference, the role of the financial aid office, and the aftermath of the credit crunch-that the provider relationship with a private lender does not appear to be of much importance. Although a significant obstacle to overcome, SYNERGISTICS contends that providers should focus more aggressively on database marketing and cross-selling to identify and target those households among their own customer bases with college age children. At a minimum, creating awareness of student loan options that might be available at their own financial institution should be a basic objective."
Money Anxiety Index Rises Again In September
SAN FRANCISCO, Calif.-September's preliminary Money Anxiety Index rose to 99.8-an increase of 1.3 index points from last month, and 5.7 over the same month last year. The index has been on the rise since October 2006, when it stood at 52.9-nearly half the current level. According to Dan Geller, Trend Forecaster at Money Anxiety Index, the gradual increase in the Money Anxiety Index in the past five years is another indication that, de facto, the Great Recession is not over yet even though it was declared over in July of 2009.
The Money Anxiety Index measures various economic indicators and factors associated with consumers' level of financial worry and stress. MAI, which measured the level of financial anxiety for the past 50 years, fluctuated from a high of 136.0 during the early 1980s recession, and a low of 40.3 in the mid 1960s (January 1975 = 100). The Money Anxiety Index was developed using Structural Equation Modeling (SEM) with a large sample size of monthly economic indicators ranging from 1959 to 2010. For info: www.moneyanxiety.com
Some Rays Of Sunshine Found In Consumer Confidence
ATLANTA-Increased confidence in financial advisors is reported in the wake of recent economic and market conditions by nearly four in 10 mass affluent consumers who use them, according to a recent survey by SYNERGISTICS Research.
The study titled, "Refocusing on the Mass Affluent," found three-quarters of Mass Affluent respondents who have investable assets of $100,000 to $1 million use some type of professional financial advisor. Those who use financial advisors were asked to indicate, on a five-point scale, how their degree of confidence in their advisors has been affected by conditions over the past 12 months.
Overall, four in 10 are more confident in their advisor's expertise; 55% have the same level, and 6% are less confident.
"Opportunities are strong for growing relationships with younger mass affluent investors who are more apt to be more confident," said CEO William McCracken.
For info: www.synergisticsresearch.com
