Remarket personalized credit offerings to strengthen customer retention

No doubt about it — credit is a competitive market. As a bank or fintech focused on long-term viability, you naturally put a lot of resources towards acquiring new customers. But, to truly sustain growth, you also want to retain them.

What you need is a dynamic remarketing approach that deepens the relationships with your existing customers and allows you the agility to make smart, personalized credit decisions at a faster pace.

How can you successfully remarket to existing customers?

There are three key factors to successfully remarketing your existing customers with the credit offerings that best fit their needs:

• Ongoing monitoring of credit profiles using real-time data

• Clear identification of cross-selling opportunities

• Automated workflows with connections to multiple data sources

These components help you make credit decisions more efficiently while operating in such a competitive landscape. Each one is discussed in more detail below.

Leverage real-time data in ongoing monitoring processes

Real-time data provides unique insights into customer behavior and the financial conditions underlying specific actions. Leveraging this real-time data through ongoing credit checks helps you create an evolving view of your customers, so you can visualize more opportunities to offer targeted, personalized credit offerings throughout their life cycles.

When you can better identify changes in spending patterns, income levels, and credit usage, you can segment your customers more precisely and quickly adapt to their needs.

Identify more up-sell and cross-sell opportunities

When you are conducting credit checks on a continuous basis, it is also easier to identify up-sell and cross-sell opportunities. For example, if a customer has a sudden increase in income, you can promptly remarket them and offer new loans or options for ongoing credit.

Up-sell and cross-sell opportunities include:

• Increasing their current credit limit

• Presenting lower interest rates on loans and other credit products

• Offering low-interest loans to customers who are regularly carrying a credit card balance

• Extending a home equity line of credit (HELOC) to customers with mortgages

• Providing business loans or merchant services to customers who are starting a business

Automate workflows and decisioning processes for credit line increases

Certain events signal opportunities to reassess a customer’s credit limit:

• Additional sources of income

• Consistent, responsible financial behavior

• Major life events like homeownership

For example, if a customer’s credit card payment is always on time and they have secondary income through an employment gig, you can reward their good financial behavior by increasing their line of credit. Similarly, if a customer has demonstrated financial responsibility and just purchased a home, you could offer to increase their credit limit to help with the associated costs. In both cases, you are building more customer loyalty.

Automation helps enhance the effectiveness of these credit management strategies by continuously assessing customers’ creditworthiness and behavior patterns. As a result, you spot opportunities for credit line increases more frequently, reach out to customers at a much faster rate, increase your operational efficiency, and seize a greater number of opportunities to continue growing your revenue.

How Alloy helps you remarket to existing customers

Through Alloy’s holistic risk platform, you can gain the competitive advantage of being able to meet your current customers’ needs as they evolve and change.

Automate ongoing credit checks

With Alloy, you can run automated credit checks on your portfolio at scale to:

• Enroll individual customers in periodic checks to monitor their financial health and routinely assess their creditworthiness

• Pull in fresh data from a wide range of third-party data sources — in addition to your own proprietary data — and incorporate it throughout your credit decisioning processes

• Set automated actions based on the different outcomes of those checks

You can schedule the ongoing credit checks at your preferred cadence: daily, weekly, monthly, or another customized option. Alloy’s behind-the-scenes decisioning logic determines the best course of action, intelligently routing borrowers to the appropriate decisioning path — for example, a credit line increase or product remarketing — based on their behavior.

It is also important to remember that we live in a world of constant economic disruption. Changes in inflation or unemployment directly impact credit risk and borrower behavior. These economic shifts might dictate adjustments to your interest rate structures, risk models, and lending criteria. They are also the times when your current customers truly need more access to credit funds.

Alloy allows you to constantly review and evaluate your credit policies so that you can maintain a balanced approach to credit risk management. This ensures “always-on” protection, so you are never caught off guard by any changes to the customer’s financial health, and you are also scaling and allocating internal resources more efficiently.

With Alloy’s Testing Suite, you can test new policies or changes before going live.

Remarketing isn’t a one-and-done deal; it often requires fine-tuning. But how many times have you been afraid that changing a credit policy will not result in your intended outcome? When you lack confidence in your legacy system, your policies could go stagnant, and you might not be able to deliver on your growth goals.

When you implement Alloy, uncertainty and trepidation become a thing of the past. The Alloy Testing Suite provides different ways to test changes to your existing policies or new policies prior to implementation. With the Testing Suite, you can:

• Application test your software end-to-end to identify and rectify potential issues

• Backtest and see the impact of workflow changes before they go live

• A/B test different versions of your workflows to see which performs better

• Shadow test a new policy in tandem with current policies

In other words, the Testing Suite lets you adapt to both economic factors and evolving customer needs with confidence.

Learn more about how you can validate your credit policies as needed.

Alloy provides the agility to consolidate multi-step workflows as needed — without customer friction.

Through Journeys — the flexible architecture underpinning the Alloy platform— you can link multiple workflows into a single configuration and review all the evaluations and decisions that have occurred throughout the customer’s history in one unified view.

By continuously updating the application state throughout the lifecycle, Journeys can simplify your codebase while ensuring a seamless experience for your customers. For example- in the case that a borrower is run through a remarketing workflow and you would like to extend them an offer for a new credit product, Journeys can facilitate the state management of the pre-qualification checks, the outcome of the offer extension, and final underwriting workflow which includes a hard credit pull upon acceptance of the offer.

Explore how Journeys can streamline the customer experience.

When remarketing to existing customers, you do not want to create unnecessary friction. As part of final underwriting checks, borrowers may need to provide additional documentation to verify their income, such as income statements, bank statements, etc. The Alloy SDK can streamline digital document collection and verification to reduce customer friction as part of your credit decisioning process. With access to best-in-class document verification vendors and support for a variety of non-identity documents like utility bills, bank statements, and paystubs, lenders can seamlessly validate a borrower’s identification, income, or tax documentation using a customizable front-end user experience.

Use Alloy's SDK to streamline your customers' experience.

With Alloy, you have the flexibility and agility to make dynamic changes and stay on top of market trends. Your customers’ data is not dispersed amongst multiple systems, tools, or databases. Instead, you get a full-picture, up-to-date assessment of their creditworthiness in one place.

Use the platform to adjust workflows, figure out the best credit products to offer, and update interest rates or term length to fit the circumstances of specific customer segments — without being dependent on any operational resources.

From there, you can customize your remarketing efforts to extend more ongoing credit or offer a new, pre-approved credit product, without putting your customers through a formal application process. The result is a frictionless customer experience, that is hyper-personalized to fit each customer’s specific needs.

Increase customer engagement with Alloy

Alloy is an Identity Risk Solution that provides both Onboarding and Credit Underwriting functionalities in a single, unified back-end platform that helps banks and fintechs make faster credit decisions, increase auto-approvals, and test new policies before they go live. With an extensive ecosystem of over 190 data sources, Alloy clients use detailed identity data gathered throughout the customer lifecycle in combination with credit bureau data and alternative underwriting data to offer more credit products, to more people, with less risk.

Never miss a chance to remarket to current customers with personalized credit offerings. Use Alloy to continuously reassess creditworthiness, mitigate credit risk, and capitalize on growth and revenue opportunities at the same time. With Alloy in your tech stack, you will make smarter crediting decisions that enhance your relationships with existing customers, leading to an increase in your retention rate.