Webinar: How to be there for every financial milestone | Blend

Webinar: How to be there for every financial milestone

In a recent CBA webinar, Scott Hirsch, product marketing lead at Blend, discussed the results of new Forrester Consulting research on milestone-based lending. Hirsch previewed the results, which show a strong correlation between milestone-lending capabilities and meeting revenue and customer loyalty goals.

Milestone-based lending, which Hirsch details in the webinar, involves lenders combining the context of a customer’s life financial milestones with their financial profile to deliver a specific offer in real time.

Too busy to watch? Download the executive summary here

Three components of an effective milestone-based lending strategy

As customer loyalty becomes increasingly fickle, Hirsch recommends a three-pillar strategy to develop a milestone-based lending program. This strategy, informed by the Forrester research, is designed to help you be there for the moments that matter.

Delivering a personalized customer experience

In order to develop a successful milestone-based lending program, Hirsch stresses the need for lenders to make loan recommendations to pre-qualified borrowers in real time based on individual consumer financial profiles. This entails developing dynamic segmentation, personalizing experiences across channels, and integrating all of these experiences into a martech stack.

According to the research, financial institutions struggle most with dynamic segmentation. This requires bringing together first-, second-, and third-party data to create multiple dynamic profiles, giving lenders the 360-degree view of a customer that Hirsch says enables contextually relevant offers.

Cross-product decisioning

The next pillar of a milestone-based lending strategy is the ability to instantly deliver a lending decision across product lines for qualified customers. This entails data integration to limit the amount of information consumers need to input into an application, instant decisioning without the need for follow up, integration management of decisioning tools and legacy systems, and credit and risk policy management.

We found that the biggest gap for lenders is with data integration, which requires breaking down silos within institutions. Hirsch noted that leveraging a platform like Blend can be helpful to avoid complex integrations for each new product.

Product configuration and customer experience

Configuring products that convert and getting to market quickly comprise the final pillar of the milestone-based lending strategy Hirsch discussed. This entails developing seamless self-service application experiences that pre-fill previously provided customer data, are configured for all channels, and utilize best practices for conversion. The ability to assemble new product and application experiences in months rather than years is key.

Our research shows that lenders typically have the most difficult time with conversion optimization, which is where a technology like Blend can help. Blend streamlines the application and onboarding experience for customers to make it as easy as possible, helping lenders close the gap in application completion percentage.

Putting milestone-based lending into practice

The data strongly indicates that customers and financial institutions alike understand the importance of milestone-based lending. Despite how important these milestone-based practices are, many banks are struggling with the technical capabilities Hirsch noted are needed to deliver these robust experiences. Hirsch recommended cementing the above three pillars to make milestone-based lending a reality.

Explore how a technology partner can help you master milestone-based lending.