The Power of ACH Data Brings in New Loans

Through a targeted campaign developed by Synergent, a $142.5 million-asset credit union grew loan volume by leveraging automatic clearing house (ACH) transaction data to identify and approach members who were making loan payments to other financial institutions.

“ACH targeting opens a significant new door for credit unions – another tool and data source to identify members with a potential need, serving them with promotional offerings that potentially benefit both the members with new product and services and the credit union in new earnings, said Doug MacDonald, vice president, Synergent Direct Marketing Services. “The benefits of credit unions leveraging transactional data to better serve members through data are clear – the power of data to place the right message, to the right member at the right time has never been more powerful in creating surgical marketing and quantifying return on marketing investments.”

Oxford Federal Credit Union used this creative tactic to bring loans to the credit union. Kim Davis, marketing director for Oxford FCU, delved into the approach. “We came to Synergent with the idea of using transactional data in an effort to target the right members for our auto loan campaign. Direct Marketing Services used ACH transaction reports, along with custom programming, to identify members making automatic payments from their credit union accounts. These automatic payments were funding loan payments with other financial institutions. With creative targeted marketing, we offered members great incentives to refinance their loans with us,” explained Davis.

Opportunities abound for a credit union to dig into member data, including their ACH transactional data, to define the appropriate members to approach for a targeted campaign. Over a two-month campaign, Oxford FCU wrote new loans totaling over $3 million and a realized a return of over $466 in new lending dollars for every marketing dollar spent.