NestEgg clients doubled the number of loan applications in January compared to the same period last year.
On average, the value of loan books increased 25% during 2021. This is twice the sector average.
Importantly, 1 in 5 applications were automated accepts.
Furthermore, as Loans Officers choose not to overturn recommendations, loans are ready to go. Consequently, our lender-clients have been able to absorb additional demand without more staff.
Here are five tactics for 200% growth.
Five tactics for 200% growth
- Firstly, simplicity is key. Credit unions with fewer loan products grow faster. Lenders are making a borrower work hard if they have to choose between different products with varying criteria. Netflix, Google and Amazon have made people accustomed to low-effort digital experiences. More loan products, means more effort. As a result, bounce rates increase.
- In addition, long winded application forms don’t work. Drop out rates soar one minute into an application. For that reason, NestEgg’s workflow takes just 24 clicks to make a loan application. Because of this, clients using NestEgg’s workflow grow three times faster than lenders using website forms that create email versions of online applications.
- Next, alignment between a decision engine rule set and Loan Officer judgement is essential. If automated accepts or declines have to be reviewed, the business benefits of automation are lost.
- Always listen to feedback and constantly improve. What was built online yesterday, isn’t always going to be relevant next week. Websites are just like cars. Landing pages, online applications and key messages. They all need maintenance.
- Finally, don’t build and assume the applications will come. Credit unions and CDFIs are a best kept secret. Therefore, tell people about what you do. As Great Western Credit Union demonstrated during our January Grow Your Loan Book webinar, marketing spend is both controllable and highly effective.
Contact us for a discussion about how NestEgg can help grow your loan book.
Bonus: If you want to go deeper on growth for your credit union you might be interested in the loanbook growth equation.