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Equity Line / Loan
Targeting
ISSUE:
Former equity line or loan users that have paid off their equity balances are the best target
for equity line or loan offers. PRINCIPLE
TARGETS:
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1.
Low Loan E's |
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4.
Loan B's |
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2.
Multiple Service / High Balance C's |
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5.
Multiple Service / Low Balance C's |
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3.
Multiple Service / High Balance D's |
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6.
Multiple Service / Low Balance D's |
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SELECT:
Identify Households who have paid down an existing equity line or paid off an existing equity
loan at the Credit Union in the past 6 months.
CONSIDERATIONS:
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Consider
follow-up telemarketing calls to Core A households
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Structure HELOC pricing to encourage activation - non-use fees, required draws, etc.
KEY
FINDING:
For the typical institution ‘Low Loan E’ households drain 80% of a institution’s profitability.
STATISTICS:
Of the ‘Low Loan E’ households, 4% currently have an equity line of credit with low balances or no balances.
TACTIC:
Find households who have an equity line of credit with low or $0 balances but the line remains open.
OFFER:
Send out convenience checks to HELOC households reminding them of the available credit and the low interest rate currently available.
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