By Devon Kinkead

Introduction

Banking futurists keep announcing the death of the branch. Yet, real data tells a more complicated story.

Micronotes’ post-campaign analytics revealed that home equity loan conversions increased sharply the closer members lived to a branch. Members within one mile of a branch converted at five times the rate of those more than five miles away — and beyond 15 miles, conversions nearly vanished.

That finding seems to contradict Brett King’s provocative thesis in Branch Today, Gone Tomorrow, summarized in The Financial Brand, which argues that branches have become functionally irrelevant in the digital age.

So which is true? Are branches still essential, or are they obsolete?

The Data: Distance Still Drives Conversions

Distance Range (mi)	Conversion Rate
0–1	0.5 %
1–5	0.1 %
5–10	0.1 %
10–15	0.2 %
15+	0 %

Micronotes Analysis, Feb 2025 — new customer HELOC Firm Offer of Credit

Why This Happens: It’s Not About Transactions — It’s About Trust

The conversion lift near branches isn’t a relic of paper processes — it’s a psychological signal. Physical proximity reinforces trust, familiarity, and confidence in a brand’s permanence.

When the product is high-stakes — like pledging home equity — prospects want the reassurance that someone nearby can help. A branch’s mere existence reduces perceived risk, even if the borrower never walks through the door.

In short: branches still move people, even if they no longer move paper.

Behavioral Mechanisms Behind the Branch Effect

1. Trust & Reassurance
   Proximity communicates stability — “If I need help, I know where to go.”
2. Hybrid Journeys
   Digital buyers still toggle between screens and conversations. A nearby branch lowers friction when they need a human step.
3. Local Brand Exposure
   Branch presence amplifies marketing awareness via signage, sponsorships, and community footprint.
4. Engaged Member Cohorts
   Households near branches often have stronger engagement or relationship tenure, which compounds conversion probability.

Reconciling Brett King’s Argument

Brett King is right about one thing: the traditional, transaction-centric branch has reached the end of its useful life.
Routine banking is mobile-native. Consumers want instant, 24/7 access and invisible infrastructure.

But our data show that for high-trust, high-involvement decisions, branches still exert measurable influence.
They no longer define banking — they reinforce belief in the institution behind it.

In that sense, King’s thesis and the Micronotes findings are two sides of the same coin.
Branches aren’t obsolete; they’re evolving from utility to symbol.

The New Model: Branch-Light, Trust-Heavy

1. Digital-First, Branch-Smart
   Design campaigns digitally — but leverage branch proximity as a conversion multiplier for complex products.
2. Geo-Weighted Marketing
   Use distance from branch as a predictive variable. Increase bids or offer value inside a 15-mile “trust radius.”
3. Redefine the Branch Footprint
   Shrink physical square footage, but expand reach through micro-hubs, co-locations, and advisory centers.
4. Equalize Digital Trust for Distant Members
   Provide virtual consults, video closings, and live-chat concierge services to neutralize the distance penalty.

The Takeaway

The data and the futurists are both right — just about different things.
Yes, digital dominates transactions. But trust — the invisible currency of banking — still benefits from physical proximity – particularly when the stakes are high.

Branches may be fewer and smaller in the future, but they’ll remain powerful conversion amplifiers in markets where emotion, risk, and reassurance intersect.

The smartest banks won’t be branch-heavy or branch-free. They’ll be branch-light — and trust-rich.

By Devon Kinkead

The shift in American retirement investing over the past two decades offers crucial strategic insights for community financial institutions. According to Parker et al.’s forthcoming Journal of Finance study, middle-class Americans now invest 71% of their retirement wealth in equities—a dramatic increase from the 58% documented by Ameriks and Zeldes (2004) in the 1990s—largely driven by Target Date Funds (TDFs) becoming default investment options after the 2006 Pension Protection Act (PPA).

Understanding Target Date Funds

Before diving into the implications, it’s worth explaining what made TDFs so transformative. A Target Date Fund is essentially a “one-stop shop” retirement investment that automatically adjusts its mix of stocks and bonds as you age. Think of it like cruise control for your retirement savings. If you’re 30 years old and plan to retire around 2060, you’d choose a “2060 Fund.” According to Parker et al.’s research, “A typical TDF maintains 90% of its assets in equity funds until roughly 20 years before retirement date, and then decreases this share as employees age to 40-50 percent in equity at target retirement date.” The genius is that this rebalancing happens automatically. You don’t need to remember to make changes, understand market timing, or even know what percentage of stocks versus bonds is appropriate for your age. The fund does all of this for you, solving a problem that had plagued retirement savers for decades: most people either took too much risk near retirement or too little risk when young.

The Power of Smart Defaults

The most striking finding is how effectively default options shape financial behavior. Parker et al. document that when employers switched to TDFs, “younger new enrollees (those aged 25-35 when they enroll) [invested] 5% more of their financial wealth in the stock market” (specifically 5.5% as shown in Table IV). Meanwhile, older workers reduced equity exposure—both moves aligned with optimal lifecycle investing theory. Remarkably, even workers who weren’t defaulted into TDFs eventually adopted similar strategies, with the researchers noting this “convergence” effect over time.

For community banks and credit unions, this demonstrates the enormous responsibility and opportunity in product design. When we talk about “defaults,” in this context, we mean the pre-selected options that automatically apply unless a customer actively chooses something different—like the standard overdraft protection settings on a checking account or the automatic minimum payment on a credit card. Every default setting—from savings account auto-transfers to loan payment structures—shapes member financial health at scale.

Income Disparities Demand Targeted Solutions

The research reveals stark differences by income level. According to Table IV, lower-income workers benefited most from TDF defaults, with their equity allocation increasing by 5.99% compared to just 1.86% for workers in the highest income tercile. This suggests automated, well-designed financial products can help close wealth-building gaps.

Community financial institutions, which often serve more diverse income populations than large banks, should prioritize developing simplified, automated products that guide less financially sophisticated members toward better outcomes without requiring active management.

The Persistence Problem in Savings

While portfolio allocation improved dramatically, contribution rates barely budged. The study finds that “average retirement saving rates across all birth cohorts average 4.5% at age 25 and 8.5% at 65 years of age.” The Pension Protection Act’s savings-focused provisions actually correlated with decreased contribution rates initially. As shown in Table VI, “those aged 25-35 [had] -0.43% of income [lower contributions] for those age 25-35, and [this] becomes increasingly negative with age, reaching -1.2% for those age 55-65.”

This highlights a critical challenge: changing savings behavior is far harder than changing allocation behavior. Community institutions need to recognize that simply offering better savings products isn’t enough—they need comprehensive strategies addressing the psychological and structural barriers to saving.

Strategic Imperatives for Community Institutions

1. Embrace Behavioral Architecture Design products with optimal pre-set features based on member demographics and lifecycle stages. A 25-year-old opening their first checking account should have different automatic settings (like default savings transfers or overdraft preferences) than a 55-year-old consolidating retirement accounts.

2. Automate Complexity Away TDFs succeeded by making sophisticated rebalancing automatic—growing from “less than $8 billion in 2000 to managing almost $6 trillion in 2021” according to the paper. Community institutions should similarly embed financial expertise into product structures, offering “set-it-and-forget-it” options for debt payment optimization, emergency fund building, and long-term savings.

3. Deploy Continuous Automated Prescreening Following the model described by services like Micronotes, community institutions should implement continuous automated prescreening to identify when members qualify for better rates or products. This proactive approach can automatically alert members when they’re eligible for lower-cost loans or better account features, reducing borrowing costs without requiring members to constantly shop around. Just as TDFs automatically rebalance portfolios, automated prescreening can continuously optimize members’ financial products.

4. Focus on the Underserved The dramatic benefits for lower-income workers suggest community institutions can create significant value by designing products specifically for financially vulnerable populations, potentially partnering with employers to integrate these into workplace benefits.

5. Rethink Financial Education The TDF revolution succeeded not through education but through structural change. While financial literacy remains important, community institutions should prioritize making good financial decisions automatic rather than relying solely on member education.

6. Leverage Regulatory Tailwinds The Pension Protection Act shows how regulatory changes can catalyze massive behavioral shifts. Community institutions should actively engage with regulators and policymakers to advocate for frameworks that enable better default options in banking products.

The Long Game

Perhaps most importantly, the research shows these changes took time. As Parker et al. note [in Table V], the effects persisted but declined over five years—for young workers, the equity share difference between treated and control groups went from 3.63% in year two to 2.57% in year five. Community institutions must commit to long-term strategies, measuring success not just by immediate adoption but by sustained behavioral change across their member base.

The transformation of American retirement investing proves that thoughtfully designed defaults can overcome decades of suboptimal financial behavior. For community banks and credit unions committed to member financial wellness, the lesson is clear: the architecture of financial products matters as much as their availability. By embedding expertise into product design and making optimal choices automatic, community institutions can drive profound improvements in financial outcomes—particularly for those who need it most.

Source: Parker, J.A., Schoar, A., Cole, A., & Simester, D. (forthcoming). Household Portfolios and Retirement Saving over the Life Cycle. Journal of Finance.

By Devon Kinkead

In the hyper-competitive HELOC consolidation market, where a recent campaign revealed competitors capturing 96% of actively interested prospects, financial institutions need more than traditional marketing approaches. They need a strategic framework for interpreting and responding to competing market signals.

The Four Forces Shaping HELOC Marketing

Drawing from an MIT Sloan strategic signal framework, HELOC marketing operates across two critical dimensions: time horizon and impact level. This creates four distinct categories of market forces that demand different strategic responses:

Continental Drifts (Long-term, High Impact)

The fundamental shift in consumer debt patterns represents a slow-moving but transformative force. With credit card rates hovering near historic highs and home values appreciating steadily, the structural opportunity for HELOC consolidation continues to expand. This isn’t a trend to chase quarterly—it’s a multi-year positioning play that rewards institutions building sustained market presence.

Lightning Strikes (Short-term, High Impact)

The $73 million in lost opportunities revealed in recent campaign data represents a lightning strike—a sudden, stark revelation of competitive vulnerability. When prospects who received your targeted offers choose competitors 34 times more often, you’re facing an immediate crisis requiring rapid response. Speed-to-decision, digital application capabilities, and instant pre-approval processes become non-negotiable.

Smoldering Embers (Long-term, Low Impact)

The underperformance in prime credit segments (811-850 scores) represents a smoldering challenge. While not immediately catastrophic, the persistent inability to capture high-value relationships accumulates opportunity costs over time. These segments require patient relationship-building strategies rather than mass marketing campaigns.

Surface Ripples (Short-term, Low Impact)

Minor rate adjustments and promotional offers from competitors create constant market noise. The temptation to respond to every competitive move dilutes focus from strategic priorities. Not every signal demands action.

Strategic Response: From 3% to Market Leadership

Success requires different responses to different signals:

For Continental Drifts: Build persistent market presence through monthly awareness campaigns and content marketing that positions your institution as the consolidation expert. This isn’t about immediate conversion—it’s about being top-of-mind when prospects are ready.

For Lightning Strikes: Implement emergency protocols for competitive response. The data shows high-DTI borrowers (64%-77%) convert at 8x the rate of prime borrowers. Immediately reallocate resources to these underserved segments while building the operational capabilities (24-hour approval, digital applications) that competitors already possess.

For Smoldering Embers: Develop differentiated value propositions for premium segments. Stop competing on rate alone. Instead, bundle wealth management services, offer relationship pricing, and create exclusive experiences that justify choosing a local lender over national competitors.

For Surface Ripples: Establish clear criteria for response. Not every competitor’s promotion warrants action. Focus on structural advantages rather than tactical reactions.

The Behavioral Economics Advantage

The most successful HELOC consolidation campaigns leverage behavioral triggers that transcend traditional demographic targeting. Monitor signals like multiple credit card balance increases, recent property value appreciation, or changes in payment patterns. These behavioral indicators predict consolidation readiness far better than credit scores.

Geographic performance data reveals another crucial insight: success concentrates in markets with existing brand recognition. Rather than spreading resources thinly across all territories, double down where you already have trust and awareness advantages.

Execution Through Focused Priorities

The path from 3% to 30% market capture requires ruthless prioritization:

1. Speed and Simplicity – If competitors approve in 24 hours, you need to approve in 12
2. Segment Specialization – Own the high-DTI segment while competitors chase prime
3. Behavioral Targeting – Replace demographic campaigns with trigger-based outreach
4. Local Advantage – Leverage community connections where national lenders can’t compete

The Strategic Imperative

The HELOC consolidation market presents a clear dichotomy: massive opportunity shadowed by intense competition. Success belongs to institutions that can decode competing signals, distinguish critical forces from market noise, and execute targeted responses with precision.

The $73 million that walked to competitors wasn’t lost to better rates—it was lost to better strategy. By understanding which signals matter, when to act, and how to respond, financial institutions can transform from market participants to market leaders.

The question isn’t whether to compete in HELOC consolidation—the continental drift of consumer debt makes that inevitable. The question is whether you’ll interpret the signals correctly and act strategically before competitors capture the next $73 million.

Learn more

By Devon Kinkead

Prescreen marketing looks like a slam dunk: millions of consumers carry high-interest debt, sit on untapped home equity, or are primed for consolidation. Yet despite the potential, most prescreen campaigns fizzle. Conversion rates hover in the low single digits, or fractions thereof, while competitors scoop up the very prospects you’e identified and reached out to.

The problem isn’t the concept — it’s the execution. Too many institutions still treat prescreen like a blunt instrument: broad offers, generic messaging, slow processes, and little follow-through with zero optimization. In today’s market, that just won’t cut it.

The good news? By applying structured problem-solving methods and great technology — the same kind used in top consulting firms and operational excellence programs — banks and credit unions can turn prescreen marketing into a repeatable growth engine.

---

The Prescreen Success Checklist

Here’s a step-by-step framework you can embed directly into your campaign planning:

1. Scope & Goals
   • Define what success looks like: loan volume, share of wallet, primacy, or long-term profitability.
   • Segment by creditworthiness and geography.
   • Benchmark current performance (conversion rates, cost per acquisition, loss to competitors).
2. Diagnose the Gaps
   • Use tools like the 5 Whys or a simple issue tree to uncover why prospects aren’t converting.
   • Audit your data quality: Is it fresh, predictive, and clean?
3. Form Hypotheses
   • Example: If we personalize offers with projected savings in dollars, conversion in Segment X will improve by 20%.
   • Design pilots to test these ideas.
4. Fix the Friction
   • Automate prescreening and offer generation.
   • Cut time from offer to funding to under 24 hours.
   • Bake compliance into the process so it doesn’t slow you down.
5. Sharpen the Message
   • Tie offers to real needs: consolidation, cash-flow relief, flexibility.
   • Use behavioral triggers — like debt utilization or life events — to time offers for when customers are most receptive.
6. Measure What Matters
   • Track: response rate, competitor win/loss, funded loan amount, usage of credit lines, CPA, profitability, and customer satisfaction.
   • Run A/B tests on messaging, channel, and offer structure after optimizing for behavioral economics.
7. Align & Scale
   • Ensure marketing, underwriting, and product teams share incentives that go beyond raw acquisition.
   • Pilot in one region, refine, then expand.
   • Move from one-off campaigns to continuous, always-on engagement.

---

From Missed Opportunity to Market Edge

The institutions that win in prescreen marketing don’t just “blast offers.” They diagnose root causes, test relentlessly, streamline execution, and build feedback loops for constant improvement.

Think of this checklist as your field guide. Apply it campaign after campaign, and you’ll do more than improve response rates — you’ll deepen relationships, grow share of wallet, and future-proof your lending business.

Prescreen isn’t the future. It’s the battlefield. And with the right system, you can win. Prescreen smarter, not harder.

Learn more

By Devon Kinnkead

The $73 Million Wake-Up Call

When we launched a HELOC consolidation campaign targeting prospective accountholders for HELOC debt consolidation opportunities, we knew the market was competitive. What we didn’t fully anticipate was just how much opportunity our client would leave on the table – and more importantly, what those missed opportunities could teach us about acquiring new relationships in this massive and hyper competitive market.

Campaign Performance: The Hard Numbers

Let’s start with the reality check. Our campaign sent 21,000 targeted offers to non-customers between Q2-2025, resulting in:

• 21 direct sales ($3.7M in new HELOC originations)
• 2 indirect sales ($64K)
• 712 lost sales to competitors ($73.3M)

That’s a sobering 3% market capture rate, an a unit loan basis, meaning competitors won over 96% of the prospects who were actively seeking HELOC consolidation solutions. With an average line size of $176,190, each lost prospect represents not just immediate lending opportunity but potentially decades of relationship value.

Geographic Performance: Where We Won and Lost

One Northwestern state emerged as our strongest market with 13 direct sales from 4,560 offers (0.29% conversion), particularly in one county where we captured 6 sales. This success suggests we have brand recognition or competitive advantages in these markets that we’re not leveraging elsewhere.

Conversely, another Western state – where we sent 5,817 offers – yielded only 3 direct sales (0.052% conversion). This dramatic underperformance in such a large market demands immediate attention. The data shows we’re losing significant volume in high-value metros where average loan amounts exceed $250,000.

Segment Analysis: Finding Our Client’s Sweet Spot

The most revealing insights come from our segment performance:

Winners:

1. High DTI Borrowers (64.4%-77.2%): Despite only 119 offers, this segment converted at 0.84% – our highest rate. These borrowers desperately need consolidation and are underserved by traditional lenders.
2. Mid-Tier Credit (601-642): With 0.55% conversion, this segment outperformed prime borrowers, suggesting our value proposition resonates with those who may face challenges elsewhere.
3. Large Loan Amounts ($148K-$251K): This segment delivered 8 direct sales with a remarkable 6.40% market share gain, indicating we’re competitive when significant consolidation is needed.

Underperformers:

1. Prime Credit (811-850): Despite sending 2,373 offers to this segment, we achieved only 0.29% conversion. Premium borrowers clearly have better options or stronger existing banking relationships.
2. Lower DTI (Below 51%): These financially stable prospects showed minimal interest, likely because they have less urgent consolidation needs or better alternatives.

The Competitive Reality: Why We’re Losing

The 712 lost sales tell a crucial story. These prospects:

• Received our offer
• Were actively in-market for HELOC consolidation
• Chose a competitor instead

The 3% loss conversion rate (versus our 0.1% direct conversion) means competitors are 34 times more effective at converting these prospects. This isn’t just about rate – it’s about brand awareness, speed, process, relationship, and trust.

Strategic Recommendations for Next Campaign

1. Double Down on Underserved Segments

Immediately reallocate budget toward high-DTI and mid-tier credit segments. These borrowers have fewer options and show 3-8x higher conversion rates. Create specialized messaging that addresses their unique consolidation challenges using behavioral economics best practices.

2. Show Up and Speed Up Response Times

With $73M walking to competitors, we must assume awareness and speed are killing us. Implement:

• Monthly campaigns to build brand awareness
• Instant pre-approval capabilities
• Automated document collection
• Same-day callback guarantees
• Faster digital application process

3. Geographic Rebalancing

Shift resources from underperforming states to high performing ounties. However, don’t abandon large states – instead, test localized strategies:

• Partner with local mortgage brokers
• Implement geo-specific rate promotions
• Test Spanish-language campaigns in appropriate markets

4. Rethink Prime Segment Strategy

Stop mass-marketing to 811+ credit scores. Instead:

• Create premium, relationship-based outreach
• Offer wealth management bundles
• Lead with financial planning, not just consolidation

5. Enhance Value Proposition Messaging

Our current messaging isn’t differentiated enough. Test:

• “Local lender” advantages versus national competitors
• Success stories from similar DTI/credit profiles
• Calculators showing total interest savings
• Clear timelines: “Approved in 24 hours, funded in 5 days”

6. Implement Behavioral Triggers

The campaign treated all prospects equally, but behavioral data could dramatically improve targeting:

• Multiple credit card balance increases
• Property value appreciation in their area

The Path Forward: From 3% to 30% Market Capture

This campaign revealed both our client’s vulnerabilities and our opportunities. We’re competitive in specific segments and geographies, but we’re getting crushed elsewhere. The good news? We now have clear data on where to focus.

For our next campaign, success means:

• Achieving 15%+ market capture in high-DTI segments
• Doubling conversion rates on home turf
• Building awareness and reducing speed-to-decision from days to hours
• Creating segment-specific value propositions that resonate using behavioral economics best practices

The $73 million that went to competitors represents more than lost loans – it’s lost relationships, lost deposits, and lost lifetime value. But it also represents our opportunity. These prospects were interested enough to apply for our client’s HELOCs. They received our offers. We just didn’t give them enough reason to choose us.

The market for HELOC consolidation is massive and growing. Rising credit card rates and home values create perfect conditions for this product. Our challenge isn’t finding prospects – it’s converting them before competitors do.

With these insights and strategic adjustments, we’re not just aiming to improve our conversion rate – we’re targeting a complete transformation of how we compete for new accountholder relationships in the HELOC consolidation space. Order your near-branch growth analysis to start your HELOC consolidation journey here.

By Devon Kinkead

In today’s fiercely competitive financial landscape, simply acquiring new customers isn’t enough. The real battle lies in achieving primacy—becoming the primary financial institution that customers turn to for all their banking needs. With research showing that primary relationships generate 3.2x more revenue and 8x lifetime value compared to secondary relationships, the stakes couldn’t be higher.

Yet most financial institutions face a sobering reality: while 83% of consumers maintain one primary banking relationship, the average bank believes it has far more primary relationships than it actually does. This disconnect between perception and reality represents both a challenge and an opportunity—one that Micronotes addresses through its innovative two-pronged approach of intelligent customer acquisition and strategic relationship deepening.

The Primacy Imperative: Why It Matters More Than Ever

Banking primacy isn’t just about holding multiple accounts—it’s about becoming the trusted financial hub where customers conduct the majority of their financial activities. Consider these striking statistics:

• 60% of checking account customers represent 98% of relationship dollars at most banks
• Primary households maintain 23% higher balances and remain with their bank twice as long
• The top 10% of checking households average $147,000 or more in combined deposits and loans
• Leading banks like Chase achieve 75% primary relationships with 95% retention rates—10% better than the average institution

In contrast, the remaining 40% of customers contribute just 2% of household relationship value. This disparity underscores why the journey from acquisition to primacy is critical for sustainable growth.

Step 1: Intelligent Acquisition with Micronotes Automated Prescreen

The foundation of primacy begins with acquiring the right customers—those with the highest potential for deep, lasting relationships. Micronotes Automated Prescreen, powered by Experian’s vast credit database of 230+ million consumer records, revolutionizes how financial institutions approach customer acquisition.

Beyond Generic Outreach

Traditional acquisition strategies rely on broad campaigns with generic messaging that often falls flat. Micronotes changes the game through hyper-personalization that speaks directly to individual financial situations. Instead of “Get a great rate on a personal loan,” prospects receive messages like:

“John, you can refinance your $40,639 debt from 19.890% to 8.642% and stop overpaying $280 per month in interest.”

This level of specificity, made possible through the integration of Experian’s comprehensive credit data and Micronotes’ behavioral economics messaging, can achieve something remarkable: negative loan acquisition costs through dramatically higher conversion rates.

Multi-Channel Excellence

Understanding that modern consumers expect omnichannel experiences, Micronotes Automated Prescreen delivers through:

• Custom branded email campaigns
• Direct mail integration
• Digital banking re-presentment
• SMS engagement

This comprehensive approach addresses the 33% increase in direct mail costs while meeting the demand for digital experiences that 68% of buyers now require.

Comprehensive Product Support

Rather than limiting institutions to a “product-of-the-month” mentality, the platform supports simultaneous campaigns across multiple loan types:

• Auto Loan Refinance and Purchase
• HELOC/HELOAN (Traditional or Consolidation)
• Personal Loans
• Mortgage New Home Purchase
• Credit Card (Balance Transfer or Rewards)

The result? Financial institutions using Micronotes Automated Prescreen report outcomes similar to Atlas Credit’s success with Experian’s platform: 185% increase in new loan originations and 80% reduction in campaign delivery lead time.

Step 2: Deepening Relationships with Micronotes Cross-Sell

Acquiring customers is just the beginning. The real value emerges when those relationships deepen over time. Micronotes Cross-Sell transforms how banks engage with existing customers, moving beyond transactional interactions to build meaningful, primary relationships.

Recognizing Life Events as Opportunities

Every significant deposit represents a life event—an inheritance, home sale, bonus, or retirement distribution. These moments are critical inflection points where customers make decisions about their financial future. Micronotes Cross-Sell uses predictive analytics and real-time monitoring to identify these events and engage customers at exactly the right moment.

Consider these real customer interactions captured through Micronotes:

• “I’d like to speak with an investment advisor”—connecting large depositors with wealth management services
• “I’d like to open a CD”—securing long-term deposits through timely engagement
• “[Using funds for] vacation and dental expenses”—providing budgeting advice that reinforces the bank’s advisory role

The Power of Digital Conversations

Unlike traditional cross-selling that relies on branch visits or cold calls, Micronotes engages customers through their preferred digital channels. The platform’s microinterview technology creates personalized, conversational interactions that:

• Achieve 30-40% click-through rates on educational campaigns
• Reduce marketing spam by 5X while improving offer relevance by 10X
• Generate warm leads automatically without manual intervention

Proactive Retention Through Intelligence

By analyzing customer behavior patterns and attrition indicators, Micronotes identifies at-risk relationships before they leave. The platform then:

• Triggers targeted retention campaigns
• Offers personalized incentives to establish direct deposit relationships
• Promotes sticky services like bill pay and mobile deposit
• Connects customers with bankers for relationship-saving conversations

The Synergy Effect: How Acquisition and Deepening Work Together

The true power of Micronotes emerges when both solutions work in tandem. Here’s how the integrated approach drives primacy:

Immediate Engagement Post-Acquisition

New customers acquired through Automated Prescreen immediately enter the Cross-Sell ecosystem, ensuring no momentum is lost. The platform begins learning about their needs, preferences, and life situations from day one.

Data-Driven Personalization at Scale

Information gathered during the acquisition process informs future cross-sell opportunities. A customer who refinanced an auto loan might later receive perfectly timed offers for home equity products or investment services based on their improving financial position.

Continuous Relationship Building

Rather than viewing customer relationships as static, Micronotes treats them as dynamic, evolving partnerships. The platform continuously:

• Monitors account patterns for opportunity signals
• Delivers educational content to build trust
• Identifies optimal moments for product recommendations
• Measures engagement to refine future interactions

Real-World Success: Community Banks Leading the Way

Community banks and credit unions using Micronotes report transformative results:

The Farmers Bank leveraged exceptional deposit monitoring to engage high-value customers: “We had a customer with a significant deposit who shared that they planned to live off the money while relocating. That kind of personalized feedback was something we couldn’t have gathered before.”

FNB Community Bank saw immediate impact: “The first few months of reporting were eye-opening. Even when someone simply responded to a survey, we knew we were making a connection.”

Valliance Bank solved their digital engagement challenge: “We’re trying to reach individuals who aren’t coming in and won’t answer phone calls. Micronotes gave us a solution that engaged customers in digital spaces.”

The Technology Advantage: Analytics and Automation at Work

Micronotes leverages cutting-edge technology to make primacy achievement scalable:

Machine Learning for Prediction

Advanced algorithms analyze millions of data points to predict:

• Which prospects are most likely to respond to a particular offer
• When existing customers are likely to need help and advice
• Which customers are at risk of attrition

Behavioral Economics for Engagement

Messages are crafted using proven behavioral economics principles, increasing response rates and driving action through:

• Social proof and peer comparison
• Loss aversion messaging
• Personalized value propositions
• Timely nudges and reminders

Seamless Integration

Pre-integrated with major core banking platforms, Micronotes can be live in as little as one day, with no lengthy proof-of-concept required.

Measuring Success: The Metrics That Matter

Financial institutions using Micronotes track their journey to primacy through key indicators:

Acquisition Metrics:

• Cost per funded loan
• Conversion rate from offer to application
• Average relationship value at origination
• Speed from campaign to funding
• Market share gains

Relationship Deepening Metrics:

• Products per household growth
• Share of wallet expansion
• Net Promoter Score improvement
• Deposit retention rates
• Cross-sell success rates

Primacy Indicators:

• Direct deposit adoption
• Bill pay activation
• Mobile/online banking engagement
• Average account longevity
• Total relationship profitability

The Path Forward: Building Your Primacy Strategy

Achieving primacy requires a fundamental shift in how banks approach customer relationships. Here’s how to get started:

1. Define Your Primacy Criteria

Move beyond simple product counts to understand true relationship depth. Consider transaction frequency, channel usage, and total relationship value.

2. Assess Your Current State

Analyze your existing customer base to identify:

• Current primacy percentage
• High-potential secondary relationships
• At-risk primary relationships

3. Deploy Intelligent Acquisition

Use Micronotes Automated Prescreen to attract customers with high primacy potential, focusing on those who can benefit most from your products and services.

4. Activate Relationship Deepening

Implement Micronotes Cross-Sell to engage new and existing customers through personalized digital conversations that build trust and identify opportunities.

5. Monitor and Optimize

Continuously track performance metrics, refine targeting criteria, and adjust messaging based on customer response patterns.

Conclusion: The Primacy Advantage

In an era where customers can switch banks with a few taps on their phone, achieving and maintaining primacy has never been more challenging—or more critical. The institutions that succeed will be those that combine intelligent acquisition with strategic relationship deepening, creating a virtuous cycle of growth and loyalty.

Micronotes provides the technology and methodology to make this vision reality. By automating the complex processes of identifying, acquiring, and nurturing primary relationships, the platform enables banks of all sizes to compete effectively in the digital age.

The math is compelling: primary relationships generate 3.2x more revenue and last significantly longer than secondary ones. With Micronotes Automated Prescreen bringing in the right members and customers and Cross-Sell deepening those relationships over time, financial institutions can finally close the gap between their primacy aspirations and reality.

The journey from acquisition to primacy isn’t just about technology—it’s about understanding that every interaction is an opportunity to demonstrate value, build trust, and earn the privilege of being a customer’s primary financial partner. With Micronotes, that journey becomes not just possible, but predictable and scalable.

Ready to transform your approach to customer relationships? The path to primacy starts with a single step.  Learn more.

By Devon Kinkead

The latest Experian State of the Automotive Finance Market Q2 2025 report delivers a clear message: banks are back as the dominant force in auto lending, and the opportunity for market share expansion has never been greater. For financial institutions leveraging advanced prescreen marketing strategies, this data represents a roadmap to profitable growth in one of consumer lending’s largest segments.

The Bank Renaissance: Technology Meets Opportunity

Banks have returned as the largest lender type in auto financing, a remarkable shift that reflects both improved competitive positioning and strategic technology investments. This isn’t happening by accident—it’s the result of banks finally matching fintech speed with traditional banking trust and regulatory expertise.

The numbers tell a compelling story of precision targeting opportunities:

• Average new car loan credit scores increased 4 points year-over-year, with a 1 point increase for used car loans.
• Super Prime is the only risk tier seeing growth
• Over 83% of new loans are Prime+

For banks using automated prescreen technology, these trends create the perfect storm for acquisition success. The market is consolidating toward higher-quality borrowers—exactly the segment that responds best to financially personalized firm offers.

The Refinance Renaissance: A $71-Per-Month Opportunity

Perhaps the most striking finding in the Experian data is the explosive growth in auto refinancing. Refinance volume increased 11% from Q1 2025 and 29% from Q2 2020, with consumers saving over 2% on refinanced loan rates and average monthly savings of $47, increasing since 2024.

This aligns perfectly with our previous analysis showing that aggressive refinancing rates can increase prescreen loan offer volume by up to 40% by lowering rates by 75 basis points. When the average consumer is saving $71 per month through refinancing (as noted in the Q2 summary), the business case for automated prescreen refinance campaigns becomes undeniable.

Banks and Credit Unions using Micronotes’ Automated Prescreen technology are uniquely positioned to capitalize on this trend because:

1. Speed Advantage: Average months to refinance has been decreasing since peak in Q4 2023 so, speed wins customers and members
2. Data: Algorithms can identify the 29% of consumers most likely to benefit from refinancing from 230MM credit records, refreshed weekly, in hours
3. Regulatory Compliance: FCRA-compliant firm offers eliminate compliance risk while maximizing conversion using AI to optimize behavioral economics

Credit Unions vs. Banks: The Market Share Battle

The data reveals an interesting competitive dynamic: Credit Unions have steadily increased their share of the refinance space and offer the largest payment difference. However, banks maintain the overall lending leadership position.

This creates a strategic opportunity for credit unions to leverage their pricing advantages through automated prescreen marketing.

The EV Opportunity: Misunderstood but Profitable

EV share of new purchases dropped below 9%, but this represents opportunity, not obstacle. The data shows EV lease rates are just under 58% with average payment difference of $175 between lease and loan.

Smart prescreen campaigns can target EV prospects with education about total cost of ownership advantages, lease-to-loan conversion opportunities, and refinancing options for existing EV loans. The lower market penetration means less competition and higher win rates for banks with sophisticated targeting capabilities.

Payment Inflation: The $1,000+ Challenge and Opportunity

Over 15% of all new payments (loan & lease combined) are over $1,000, highlighting the growing affordability challenge. However, this creates prime refinancing opportunities for banks with competitive rates.

Consider the implications for prescreen marketing:

• New Customer/Member Acquisition: Target high-payment auto loans held by competitors with the right behavioral economic strategy
• Existing Customer/Member Retention: Proactively offer refinancing before customers/membrers shop elsewhere
• Cross-Sell Opportunities: Connect auto refinancing with other debt consolidation products

Technology as the Great Equalizer: Lessons from the Lending Leaders

The most successful institutions in auto lending share common characteristics that directly align with automated prescreen capabilities:

Speed and Efficiency: With terms increasing across the market and loan amounts increasing both year-over-year and quarter-over-quarter, consumers need fast decisions on larger loans. Automated prescreen technology delivers instant pre-qualification that traditional multi-vendor prescreen marketing processes cannot match.

Risk Management: Delinquencies increase year-over-year and remain high, making precise risk assessment crucial. Automated prescreen campaigns can identify the Super Prime and Prime borrowers who represent 83% of the profitable market while avoiding higher-risk segments.

Market Intelligence: Post campaign analytics reveal how much of your prescreen list that took out an auto loan you won, and why — setting the stage for continuous optimization.

Strategic Recommendations: Winning the Auto Lending Future

Based on the Experian data and our experience with successful automated prescreen campaigns, banks and credit unions should implement these strategies immediately:

1. Strategic Refinance Targeting

Based on the 29% growth in refinance volume since 2020 and our research showing rate sensitivity can increase offer volume by 40%, launch targeted campaigns focusing on existing auto loans where you can offer meaningful savings. The proven consumer appetite for refinancing—combined with average monthly savings opportunities—justifies aggressive competitive positioning.

2. Super Prime Acquisition Focus

With Super Prime being the only growth segment, concentrate prescreen campaigns on 750+ FICO scores. These borrowers represent the lowest risk and highest lifetime value, justifying premium acquisition costs.

3. Technology-Enabled Speed

Match fintech speed with bank and credit union stability. Automated prescreen technology with instant pre-qualification gives you the speed advantage while maintaining compliance and risk management standards.

4. Cross-Product Integration

Use auto loan originations as gateway opportunities for broader banking relationships. Every auto loan customer represents potential mortgage, HELOC, and deposit opportunities though, those conversion are difficult and require a thoughtful relationship deepening strategy and the right technology.

The Competitive Imperative: Act Now or Fall Behind

The convergence of rising loan amounts, increasing refinance activity, and bank market leadership creates a once-in-a-generation opportunity for institutions ready to act decisively. Balance growth has slowed, but is up year-over-year—meaning the institutions capturing market share now will define the competitive landscape for years.

Banks and credit unions using Micronotes’ Automated Prescreen technology report:

• Higher conversion rates through precise targeting
• Net negative acquisition costs as loan income exceeds campaign costs
• Improved competitive positioning through optimization

The Q2 2025 data proves that auto lending success isn’t just about having capital—it’s about using technology and data to deploy that capital more intelligently than the competition.

Conclusion: From Market Follower to Market Leader

The auto lending market is undergoing fundamental transformation. Banks and credit unions that combine the trust and stability of traditional banking with the speed and precision of AI-powered prescreen marketing will capture disproportionate market share.

The Experian data shows banks are already winning. The question is: will your institution be among the leaders, or will you watch competitors capture the $71-per-month refinance opportunity and the 83% Prime+ market while your institution settles for whatever’s left?

The technology exists. The market opportunity is proven. The competitive advantage goes to institutions that act now—at scale and with precision—to help customers lower their borrowing costs while generating profitable loan growth.

Ready to transform Q2 2025’s auto lending insights into market-leading results? Connect with Micronotes today to discover how automated prescreen technology can turn industry trends into your competitive advantage.

By Devon Kinkead

The latest data on U.S. consumer financial sentiment from the Pew Research Center reveals that nearly one-third of Americans believe their financial picture will worsen over the next year—a significant 12-point increase from last year. For credit unions navigating this landscape of fragile confidence, the question isn’t whether to reach out to potential members, but how to do so with precision, empathy, and relevance.

This is precisely where automated prescreen marketing shines, and why Micronotes’ approach to targeted financial product recommendations has never been more valuable.

The Demographics Tell a Powerful Story

The Pew Research data highlighted in CreditUnions.com reveals stark disparities that make the case for sophisticated targeting:

• 45% of lower-income consumers can’t pay bills in full monthly (compared to just 7% of upper-income earners)
• 75% of low-income women have no emergency savings
• 35% of Gen X and 33% of millennials feel financially worse off than their parents

These aren’t just statistics—they’re opportunities for credit unions to provide meaningful solutions through precisely targeted outreach. Generic marketing approaches miss these nuanced needs entirely.

Why Prescreen Marketing Hits Different in Uncertain Times

When consumers are anxious about their financial futures, irrelevant marketing feels tone-deaf at best and predatory at worst. Automated Prescreen marketing, powered by 238MM Experian credit records updated weekly, allows credit unions to:

Match Real Products to Real Needs: A millennial struggling with student loan debt doesn’t need another credit card offer—they need debt consolidation solutions. A Gen X member nearing retirement needs different products entirely.

Demonstrate Understanding: When a credit union reaches out with a product that genuinely addresses a member’s or prospect’s specific financial situation, it signals that the institution “gets it”—building the trust that fragile consumer confidence desperately needs.

Reduce Marketing Waste: With 35% of consumers expecting their finances to stay about the same, broad-stroke campaigns risk alienating members who feel overlooked or misunderstood.

The Micronotes Advantage in Action

Consider how traditional marketing might approach the concerning trend of financial pessimism: blast promotional rates to everyone and hope something sticks. The Micronotes approach is fundamentally different:

• Behavioral Triggers: Identify members showing signs of financial stress through credit data realities and patterns, not demographics alone.
• Contextual Timing: Reach out when members are most likely to be receptive, not when it’s convenient for the marketing calendar.
• Personalized Solutions: Recommend specific products that address individual circumstances revealed through data analysis and financially personalized offers.

Turning Fragile Confidence into Trust-Building Opportunities

The article notes that credit unions are “designed to meet this moment” with their mission-driven focus. Prescreen marketing amplifies this natural advantage by ensuring every outreach feels personal and purposeful.

When 28% of consumers expect their finances to worsen, a well-timed, relevant offer for a debt consolidation loan isn’t just marketing—it’s a lifeline that reinforces the credit union’s role as a financial partner, not just a service provider.

The Bottom Line for Credit Union Leaders

Consumer confidence is fragile, but opportunity isn’t. The institutions that will thrive in this environment are those that can demonstrate genuine understanding of their members’ needs through precise, data-driven outreach.

Automated prescreen marketing isn’t about sending more offers—it’s about sending FCRA compliant personalized solutions to real financial problems continuously, at scale. In a time when financial anxiety is rising, the credit unions that invest in sophisticated targeting and personalized messaging will build the trust and loyalty that sustain growth through uncertainty.

The mixed bag of consumer sentiment presents credit unions with a choice: continue with broad-based marketing hoping to catch some interest, or embrace precision targeting that turns every interaction into an opportunity to demonstrate care and understanding.

For Micronotes clients, that choice is already made. They’re using Automated Prescreen to acquire new members and help current members lower their borrowing costs, turning a period of consumer uncertainty into an era of new and deeper member relationships and sustainable growth.

---

Ready to transform your marketing approach during uncertain times? Contact Micronotes to learn how prescreen marketing can help your credit union build trust, relevance, and results in today’s complex financial landscape.

By Devon Kinkead

The latest credit union performance data paints a picture of an industry in transition. While the first quarter of 2025 showed members building savings and managing debt more responsibly, it also revealed a widening gap between high-performing institutions and those struggling to maintain growth. For credit unions seeking to bridge this divide, automated prescreen marketing technology offers a powerful solution to capture market share and deepen member relationships in an increasingly competitive landscape.

The Performance Paradox: Strong Fundamentals, Uneven Growth

According to recent Trendwatch data from Callahan & Associates, credit unions face a curious paradox. On one hand, share growth continues to outpace the national personal savings rate, and net interest margins have improved substantially. Members are demonstrating healthier financial behaviors, with delinquency rates bucking recent trends and improving slightly in Q1 2025, while more members are moving money into lower-term deposits and paying down debt.

Yet beneath these positive indicators lies a concerning trend: the gap between mean and median loan growth has widened dramatically. While mean loan growth reached 3.4% annually, median growth dropped to just 0.34%. This disparity suggests that larger credit unions are dominating industry lending, leaving smaller institutions struggling to compete.

The implications are clear—credit unions that cannot modernize their lending approaches risk being left behind in an increasingly bifurcated market.

The Untapped Opportunity: HELOC Consolidation

While credit unions grapple with uneven growth patterns, a massive opportunity sits largely untapped. With 61% of homeowners locked into mortgage rates of 6% or lower and equally reluctant to sell their homes, traditional mortgage refinancing has become less attractive. Meanwhile, home equity has climbed to over 50%, creating a $25.6 trillion pool of accessible capital that members could tap for debt consolidation—particularly important given the $1.2 trillion in high-interest credit card debt weighing on consumers.

The Technology Gap: Why Traditional Approaches Fall Short

Despite credit unions’ historic strength in lending—having achieved record market share in auto finance (20.2%) and non-revolving consumer loans (13.2%) in 2018—many institutions struggle to capitalize on refinancing opportunities due to outdated marketing technology approaches.

Traditional prescreen marketing campaigns, while proven effective, have been prohibitively complex and expensive for many credit unions. The process typically involves:

• Multiple rounds of communication with credit bureaus
• Labor-intensive campaign development
• Complex compliance reviews under FCRA and UDAAP regulations
• Lengthy timelines that can stretch 5+ weeks

This complexity has left prescreen marketing primarily in the hands of large banks and fintechs, creating a competitive disadvantage for community-focused credit unions. Online lenders like Figure and Rocket Mortgage are capitalizing on this gap, offering approval in minutes versus the 21-day industry average and closing in one week versus 36 day industry timelines.

The Automated Solution: Leveling the Playing Field

This is where automated prescreen technology fundamentally changes the game. By leveraging AI, machine learning, and big data analytics, platforms like Micronotes’ Automated Prescreen transform what was once a costly, complex process into a streamlined, profitable growth engine.

The results speak for themselves. Credit unions implementing automated prescreen typically see:

• Conversion rate improvements with win-rate visibility
• Net negative acquisition costs (the income from new loans exceeds campaign costs)
• Dramatically reduced labor requirements
• Consistent FCRA compliance through automated templates

Strategic Alignment: Furthering the Credit Union Mission

Automated prescreen marketing doesn’t just drive growth—it advances the core mission of credit unions. By continuously monitoring member financial situations and proactively offering better rates, credit unions can:

Improve Financial Health: Automatically identify members paying excessive interest rates and offer meaningful savings through refinancing opportunities.

Build Deeper Relationships: Demonstrate ongoing care for member financial wellbeing through personalized, timely offers that address specific needs.

Strengthen Communities: Help members save money through lower interest rates, increasing disposable income that flows back into local economies.

Extend Financial Inclusion: Reach underserved populations with affordable credit options, using data-driven insights to identify those who would benefit most.

The Path Forward: Three Critical Actions for Credit Union Leaders

As the performance gap between credit unions widens, institutions must act decisively to remain competitive. Based on the convergence of market trends and technological capabilities, here are three essential steps:

1. Embrace Data-Driven Precision

Move beyond broad marketing campaigns to hyper-personalized offers. Use automated prescreen technology to:

• Target members with specific debt profiles
• Show exact savings amounts in marketing materials
• Focus on the 29% of homeowners with only a first mortgage and over 20% equity

2. Accelerate Digital Transformation

With online lenders setting new standards for speed and convenience, credit unions must:

• Implement AI-powered underwriting for instant approvals
• Adopt automated valuation models to eliminate appraisal delays
• Create mobile-optimized application experiences with pre-filled data
• Optimize campaign win-rates with every campaign

3. Scale Intelligently

Start with automated prescreen for existing members to refine your approach, then expand to market acquisition. The 17-week application window for prescreen campaigns provides ample time to manage volume while maintaining service quality.

The Competitive Imperative

The credit union industry stands at a critical juncture. While strong fundamentals provide a solid foundation, the widening performance gap signals that traditional approaches are no longer sufficient. Credit unions that continue relying on manual processes and broad-based marketing will find themselves increasingly marginalized as larger institutions and fintechs capture market share.

However, those that embrace automated prescreen marketing can flip the script. By combining the trust and member focus that define credit unions with the speed and precision of modern technology, these institutions can capture their fair share of the burgeoning refinancing opportunity while deepening member relationships.

Conclusion: From Laggard to Leader

The latest performance data makes one thing clear: credit unions cannot afford to wait. With median loan growth at just 0.34% and competition intensifying from both traditional banks and digital disruptors, the time for incremental change and half-measures has passed.

Automated prescreen marketing represents more than just a technology upgrade—it’s a strategic imperative for credit unions serious about growth. By dramatically reducing the cost and complexity of targeted lending campaigns while improving conversion rates and member satisfaction, this technology enables credit unions of all sizes to compete effectively in today’s market.

The question isn’t whether to adopt automated prescreen marketing, but how quickly credit unions can implement it. Those that act now will be positioned to capture market share, deepen member relationships, and fulfill their mission of improving financial lives by programmatically lowering borrowing costs. Those that hesitate risk becoming statistics in the next Trendwatch report—another institution left behind as the industry consolidates around those bold enough to embrace change.

For credit unions ready to transform their lending performance, the path forward is clear: automate, personalize, and grow. The technology exists, the opportunity is massive, and the mission demands it. The only question remaining is: will your credit union be among the leaders or the laggards in the next chapter of the credit union story? Start your journey with a free near-branch growth analysis here. You can’t afford to be late.

By Devon Kinkead

The credit union industry faces a paradox in 2025: record-high home equity meets frozen mortgage markets, rising consumer debt collides with tightening credit standards, and members need financial solutions more than ever while traditional lending channels stagnate. Recent data paints a challenging picture for loan growth, but at Micronotes, we see these headwinds as the perfect conditions for credit unions to deploy smarter, data-driven growth strategies.

The Current Landscape: Five Forces Suppressing Traditional Loan Growth

The latest industry analysis reveals five critical factors constraining loan growth across credit unions:

1. The Student Loan Squeeze

With student loan delinquencies surging to nearly 8% following the end of payment freezes, millions of members face damaged credit scores and reduced borrowing capacity. This ripple effect impacts not just student loan portfolios but constrains overall lending opportunities as members struggle with substantial debt burdens.

2. The Great Mortgage Lock-In

An astounding 81% of homeowners hold mortgages below 6%, with half locked in under 4%. With current rates hovering around 6.7%, homeowners aren’t moving—and they’re not refinancing. This creates a double challenge: minimal mortgage origination opportunities and reduced purchase mortgage activity as inventory remains frozen.

3. The Home Equity Opportunity

Here’s where the story shifts. Americans sit on $25.6 trillion in accessible home equity, with HELOC balances reaching $406 billion. Members who can’t afford to move are instead tapping equity for renovations, debt consolidation, and major purchases. This represents one of the most significant untapped opportunities for credit unions in 2025.

4. The Auto Loan Paradox

Despite a surge in vehicle purchases driven by tariff fears, auto loan balances actually declined for only the second time in 14 years. Why? A credit crunch pushed average credit scores up 8 points, excluding many traditional borrowers. Used car financing dropped from 41.6% to 37.1% as high rates made loans less attractive.

5. The Lingering Debt Burden

Credit card balances remain elevated at $1.18 trillion nationwide, with high-cost states showing the strongest correlation between inflation impacts and debt levels. Members need debt consolidation solutions more than ever, yet traditional marketing approaches fail to connect the right solutions with the right members at the right time.

The Micronotes Solution: Automated Prescreen Marketing as a Growth Catalyst

While these challenges seem daunting, they actually create ideal conditions for credit unions that embrace modern, data-driven marketing approaches. Here’s how automated prescreen marketing transforms each challenge into an opportunity:

Precision Targeting in a Constrained Market

Traditional spray-and-pray marketing doesn’t work when loan demand is selective. Our automated prescreen technology processes 230 million credit records weekly, identifying exactly which members and prospects are:

• Credit-qualified for specific products
• Paying higher rates elsewhere
• Ready to consolidate debt
• Located within your service area

This precision means every marketing dollar works harder, achieving what we call “net negative acquisition costs”—where loan income exceeds campaign costs.

The HELOC Advantage: Meeting Members Where They Are

With mortgage refinancing off the table for most homeowners, HELOCs emerge as the hero product of 2025. Our data shows that 29.3% of homeowners with only a first mortgage and over 20% equity represent 28.7 million potential HELOC customers nationally.

Credit unions using Micronotes’ automated prescreen for HELOC marketing report:

• Higher conversion rates than traditional prescreen marketing
• Lower borrowing costs for members
• Manageable loan origination volume spread over 17 weeks (not all at once)
• Deeper wallet share with existing members
• Strong new member acquisition performance

Speed and Efficiency: Competing with Fintechs

While online lenders promise instant approval and one-week closings, credit unions can compete by combining their trust advantage with modern marketing efficiency. Automated prescreen:

• Delivers pre-approved offers in real-time
• Adapts to rate changes automatically
• Runs continuously without manual intervention
• Frees staff to focus on member relationships

The ROI Reality Check

Here’s the math that matters: Credit unions need just a 0.03% improvement in conversion rates to cover the cost of automation. Our clients typically see 0.10% improvements or higher—that’s a 3x return on investment. For a credit union sending 100,000 prescreen offers annually, that means just 33 additional funded loans pay for the entire system.

Three Strategic Imperatives for 2025

1. Embrace Continuous Marketing

The days of quarterly campaigns are over. Members’ financial needs don’t follow your marketing calendar. Automated prescreen runs continuously, catching members at their moment of need—when they’re actually ready to consolidate debt or tap home equity.

2. Focus on Financial Wellness, Not Just Loan Volume

Credit unions that position themselves as financial wellness partners, not just lenders, will win in 2025. This means:

• Proactively identifying members paying high rates elsewhere
• Offering debt consolidation before members ask
• Educating about home equity advantages over credit cards
• Providing personalized savings calculations in every offer

3. Leverage Data for Competitive Intelligence

Understanding why campaigns succeed or fail is crucial. Our AI-powered post-campaign analytics reveal:

• Which competitors are winning in your markets
• What rates and terms drive conversions
• Where untapped opportunities exist
• How to optimize future campaigns

The Mission Alignment Advantage

Unlike banks focused solely on profitability, credit unions have a unique advantage: prescreen marketing directly furthers your mission. By continuously identifying members who could save money through refinancing or debt consolidation, you’re not just growing loans—you’re improving financial lives.

Consider this: A member paying 24% on credit cards who consolidates to a 12% HELOC saves thousands annually. That’s money staying in your community, reducing financial stress, and building long-term member loyalty. It’s profitable growth with purpose.

Looking Ahead: The Window of Opportunity

The convergence of high home equity, elevated consumer debt, and rate-locked mortgages won’t last forever. Credit unions that act now to implement automated prescreen marketing will:

• Capture market share while competitors hesitate
• Build deeper relationships with existing members
• Attract profitable new members from larger institutions
• Position themselves for sustained growth beyond 2025

The credit unions succeeding in 2025 won’t be those waiting for conditions to improve—they’ll be those using smart technology to thrive in current conditions. With automated prescreen marketing, the question isn’t whether you can afford to modernize your approach; it’s whether you can afford not to.

Take Action Today

The data is clear, the opportunity is massive, and the technology is proven. While the industry faces legitimate headwinds, credit unions equipped with automated prescreen marketing are turning these challenges into competitive advantages.

Ready to transform your loan growth strategy? Contact Micronotes today for a personalized growth analysis of your market opportunity. Let’s turn 2025’s lending challenges into your credit union’s growth story.

---

About Micronotes: We deliver cloud-based big data, analytics, and digital engagement solutions to financial institutions that want to expand wallet share, market share, and retention. Our automated prescreen marketing platform processes 230 million credit records weekly, delivering financially personalized, FCRA-compliant offers that drive measurable growth for community financial institutions.