By: Teri Tassara
“Do more with less” is a pervasive and familiar mantra nowadays as lenders seek to make smarter and more precise lending decisions while expertly balancing growth objectives and tightened budgets. And lest we forget, banks must also consider the latest regulations and increased regulatory scrutiny from the industry’s governing bodies – such as OCC and CFPB.
Nowadays, with the extensive application of predictive analytics in everyday lending practices, it makes sense to look to analytics to fine tune decision-making and achieve a greater return on investment in three common growth objectives for bankcard acquisitions:
- Profitable growth – How do I find the most profitable acquisition targets? How do I know the borrowing characteristic of each consumer? Are they high spend or high income? Do they carry a balance but always make timely payments?
- Universe expansion – How many more consumers are there that meet my lending criteria? How can I effectively reach them?
- Customer experience – How do I offer the right product to the right customer? How do I communicate to my customers that I understand their lending needs?
To that end, growth objectives vary by lender; as such, so should their bankcard acquisitions analytical toolkit. The analytical toolkit arsenal should enable lenders to develop refined bankcard campaign strategies based on their specific objectives.
Look for upcoming posts on the essential components of the bankcard acquisitions analytical toolkit.