Introduction
Welcome to our summer edition of “Stellar Insights”. As I sat down to write this introduction I was struck with the thought: where to begin. This year started off with such great promise and quickly turned into something no one could’ve predicted. Hopefully, we can return to a sense of normalcy soon, although the new “normal” will certainly be different in many regards. We hope that you and your family have weathered the storm in good health.
As we approach the remainder of the year, we’re all starting the process of developing strategies and budgets for the upcoming new year. This year more than ever, we’ll all be challenged to update our business models to account for an ever-changing business world. This will require all of us to closely examine the changing needs of our customers to compete in the digital business environment. We can no longer overlook the ever-changing needs our customers expect and require. Companies that adapt will have a huge strategic advantage over those who don’t.
On a much brighter note, we have a huge announcement to make regarding our Stellar Auto Loan solution. This month we’re announcing The Stellar Indirect Tool Kit℠. Over the past several years, clients and prospects have lamented about the lack of interest-income and retention of indirect auto loans. Once we began looking at data from several clients, we came to the conclusion that neither of these deficiencies needs to just be accepted. This is one of the biggest opportunities we see for PFI growth in the banking industry. In fact, we have already been executing several of the steps in our solution for clients over the years. We simply had not put the component parts together in a solution to address the overall problem. The good news is we now have the solution finalized in a multi-step process that addresses the deficiencies our clients and prospects have been complaining about for years.
We have dedicated almost this entire edition of “Stellar Insights” to detailing the solution and its effect on revenue and PFI growth for your reading convenience. We’re confident you’ll see its value and we can’t wait to hear what you think!
Read Articles From This Edition
Indirect Tool Kit Analysis
Analysis is a key component of The Stellar Indirect Tool Kit℠ — it’s what allows us to help you get the most from your marketing dollars to maximize the transformation of indirect loans into PFI relationships. To facilitate this, Stellar uses your current and historical account data to segment…
READ MORE
Marketing Components
Upon completion of the analysis phase of the Tool Kit you will now have the necessary knowledge to customize your marketing efforts. Keep in mind, the extensive data analysis was designed to answer the who, what, where, when, and why questions that create the templates for your marketing initiatives...
The Indirect Dilemma
The indirect auto loan source has historically been a dilemma for bankers of financial institutions. The good news is that it provides a relatively steady source of loans. They increase the assets of an institution and require far less work for internal staff compared to a direct loan…
READ MORE
The Indirect Auto Loan Opportunity
Credit Unions have been helping members finance vehicles since they were first established. Over many decades CUs have grown their indirect auto loan portfolio with aggressive rates and technological upgrades through dealership financing relationships...
READ MORE
Auto Loan Recapture Best Practices
Most loan recapture program offers focus mainly on interest rates. Unfortunately, response rates tend to be low, and marketing costs often outweigh any profits generated. The exception to this rule is offering low-interest rates, which then cuts interest margins to a less than desirable outcome…
READ MORE
The Value of a Direct Auto Loans
Most institutions understand the need to grow organically and provide a stable membership base. Members that use a credit union as their Primary Financial Institution (PFI) generate dependable assets and deposits for planned future growth...
READ MORE