Credit union loan zone: Auto enhanced scores

first_imgWe used to hear often from members that the reason they got their car loan from a big bank was the competitor’s rate was lower than ours. We used to discount this information, as we knew our rates were lower. We did our surveys.However, what was happening in many cases was that our competitors were pulling auto enhanced credit scores that would take our members up a couple of credit grade tiers. When we pulled a traditional credit score, we would get a lower credit rating for the same borrower. So we were not competing on a level field.More specifically, here’s how it would go. Our member would go into the auto dealership. The dealer rep would send the loan application to our credit union and other lenders. We would pull a credit file using the traditional model—let’s say the credit score was 680. With a 680 score, we would classify this as B credit and assign an interest rate of 5 percent.Our competitors (all big banks) would pull an auto enhanced credit score. Since most members pay auto loans on time, the enhanced score was in the 700s. With a 700-plus score, the big banks were able to offer interest rates in the 3.5 percent range. Why wouldn’t the member want to pay 1.5 percent less? We lost this business due to not using the same model the big banks were using. If we had used the same auto enhanced score, we would have given our members a better rate, too. continue reading » 29SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img read more

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Sell the dream: Your products and services aren’t special

first_img 112SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,Mark Arnold Mark Arnold is an acclaimed speaker, brand expert and strategic planner helping businesses such as credit unions and banks achieve their goals with strategic marketing insights and energized training. Mark … Web: www.markarnold.com Details I offer this as a friendly challenge: the products and services your credit union offers are probably not that remarkably different, better or more innovative than most of what your competition has.If you find that a little unsettling it’s probably a good thing. Retail operations (including credit unions) typically don’t adapt and evolve unless they find themselves in an uncomfortable position.The products and services you offer — checking accounts, loans, digital, etc. — are not bad. However, when you get right down to it, are the products and services you offer really all that different from the competition? Doubtful. Sure — every once in a while somebody will offer a new gizmo that is different and catches the consumer eye — for a while. Eventually, however, somebody else will appropriate the idea (a nice way of saying steal) and it’s no longer unique.Consumers come to your credit union not so much for the product or service. For example, they’re really not coming for an auto loan. What they’re coming for is the dream of driving the vehicle. They’re not really coming for a checking account. What they’re coming for is the ease and convenience of managing their financial livelihood to free up time so they can concentrate on things that mean more to them. Credit unions that focus on selling the dream rather than products are better positioned for success.To sell the dream your staff must re-learn what it has probably regarded for many years as the traditional “features and benefits” way of thinking. This feature-centric way of promoting products and services focuses on the features side. Features (think the bullet point list of things on your brochures or website that describe an account, for example) describe what a particular product offers. However, they are typically dry and boring and don’t speak to the dream. The benefits of a product, conversely, directly address the higher aspirations of a product or service (such as the examples above regarding checking accounts and car loans). When your staff approaches members with the idea of promoting benefits first, their likelihood of successfully achieving the sale rises dramatically.This type of paradigm-shift in thinking doesn’t come quickly or easily (especially for staff that have worked front-line positions with members for years). It requires a 180-degree shift from focusing on the nuts and bolts (features) of a product or service to the more member-centric dream (benefits) aspect. A dramatic shift in thinking and member interactions such as this doesn’t come about accidentally — rather, it happens with continuous, rigorous and regularly reinforced training as well as predefined expectations for employee success.Credit unions with an eye towards future growth welcome uncomfortable revelations such as this. Once you understand that it’s not the features of a product or service that attract a member but rather the benefits (and dreams) they offer, you can begin the pivot towards dream-centric member engagement.last_img read more

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USC attempts to bounce back against No. 8 UCSB

first_imgThe USC men’s volleyball team looks to recover from a tough loss against BYU as they host UCSB tonight at the Galen Center in an Mountain Pacific Sports Federation conference game. The Trojans (5-3, 4-3 MPSF) fell to the Cougars in five sets, 16-25, 25-22, 15-25, 25-20, 15-10. USC dropped to the fifth spot in the AVCA top 15 as the Gauchos (5-2, 4-2) climbed to No. 8 after sweeping a double-header against Hawai’i.Killing it · Outside hitter Lucas Yoder was named the Off The Block National Freshman of the Week on Feb. 3 for the third time this season. – Tucker McWhirter | Daily TrojanDespite the loss, freshman outside hitter Lucas Yoder had a match-high 23 kills for the Trojans. Yoder was named the Off The Block National Freshman of the Week for the third time in five weeks for his performance. Junior outside hitter Cristian Rivera had 12 kills of his own, along with three aces. Sophomore outside hitter Alex Slaught had 11 kills and freshman middle blocker Andy Benesh had six blocks.USC also outhit the Cougars .261 to .233, but could not stop BYU’s rally late in the game. After handily winning the first set thanks to hitting .600 and serving three aces, the Trojans fell behind early in the second set and never recovered. USC again jumped to an early lead in the third set and converted the lead to a win. The Trojans had an early lead in the fourth set, but lost the lead and eventually the set. The Cougars went on a 5-0 lead early in the final set and pulled away to win the match.“We need to limit the number of errors we make,” said USC head coach Bill Ferguson. “We make errors at bad times and it hurts us in the end and it kills our momentum.”The Gauchos are led on the offensive end by outside hitter Austin Kingi, who has amassed 84 kills in seven games. On the defensive side of the ball, setter Jonah Seif leads the team with 48 digs. The squad’s only losses this year have come at the hands of two of the country’s top teams, No. 1 UCLA and No. 9 UC Irvine.The Trojans average 14.2 kills per set while the Gauchos average only 11.71. What the Gauchos lack in offensive firepower, they make up for by minimizing errors. USC has 181 errors this year to UCSB’s 143.Tonight’s game against the Gauchos is the first of two home games this week for the Trojans, leading up to Sunday’s match against UCLA at 6 p.m.“We need to come together and play as a team and not as individuals,” Ferguson said. “If we do that, we’ll be in good shape.”The match begins tonight at 7 p.m. in the Galen Center.last_img read more

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