Sharing Personalized Credit Scores
Consumers are becoming more conscientious about their credit scores
Sarah. Cooke, Tuesday, December 3
Consumers are becoming more conscientious about their credit scores, both from a personal data security perspective and as borrowers. Providing consumers their real FICO credit scores is a great way to earn trust, loyalty and engagement with your credit union’s members or community bank’s customers.
During a recent webcast Ser Tech hosted with Lanvera , Texas Dow Employee Credit Union discussed recent enhancements they made to their member statements to increase engagement. Members can now access their FICO scores online, in mobile and in their monthly account statements mailed to members.
To view the full webcast, click here! Thanks to Lanvera’s Michael Scheevel for moderating.
TDECU Operations Analyst Kristina Johnson explained how critical credit scores are the TDECU members and that providing them in their monthly member statement provided members additional information to better monitor their financial health. “Our goal is always to help our members and help them understand their financial wellness and create those relationships with our members.”
From a business standpoint, TDECU employed credit-enhanced statements to grow share draft products and electronic products. “We identified many requirements for these members to receive these credit scores, possibly higher savings rates, electronic documents and other benefits,” Johnson added.
“We saw a large amount of growth from adding the FICO scores.”
The program was easy to launch, too! TDECU tackled implementation on two fronts - first by working with Lanvera, which produces TDECU’s print documents to customers to expand the documentation that is being mailed, and then to work with Ser Tech to gather the individual credit scores to be sent to the members. Lanvera takes the two separate data sources and combines them into a single document to be delivered to TDECU’s members who choose paper statements.
TDECU Program Administrator Liz Conroy, “One of the things we relied on Ser Tech for, is that to use a FICO scores, it isn’t a simple drag and drop operation. Ser Tech was an invaluable partner to work through that process to be in full compliance with all of FICO’s requirements.”
Using Ser Tech for credit score delivery means TDECU also decided to present the same score they use in their underwriting decisions. This is in contrast to other offerings, such as ‘educational’ scores offered by sites like Credit Karma. According to Ser Tech, customers can choose any one of up to 50 models that are available from FICO.
Conroy explained, “One of our core missions is the deepen our relationship with them. In this engagement process, we strive to find out everything we can about their financial needs and then identify the ways we can help them achieve their goals.”
According to Conroy and Johnson, the impact was quickly evident. Members were engaging with the credit union to ask questions, seek help and look into new products to boost their FICO score. By providing this key data point, the credit union was able to have customers enter into discussions better informed, as well as being able to provide them an avenue to monitor their ongoing financial health. The credit union is also experiencing a cost savings in its postage, because the digital scores open the discussion to receiving digital statements rather than printed statements.
Conroy encouraged more credit unions to provide members their FICO scores to educate them about their FICO score and drive further engagement.