Loan protection products are typically sold at origination
leaving untapped potential for sales during the life of the
loan
PORTLAND, Maine, July 9, 2024
/PRNewswire-PRWeb/ -- Constant, a leading provider of loan
operations technology, today announced the launch of its solution
designed to boost non-interest fee income through the offer of loan
protection products. Income Builder, enables financial
institutions (FIs) to offer extended warranty, GAP, debt
protection, auto insurance and other products not just at the
origination of loans, but throughout the loan lifecycle - and in
digital banking. Constant makes it easy for borrowers to adopt
these new products by automatically adding the cost of the premium
to their loan, eliminating upfront charges.
Borrowers who didn't choose debt or asset
protection when they took out their loan rarely hear about these
safety nets again, even though they could protect against large,
unexpected repairs or expenses." Catherine
York Powers, CEO at Constant
Redefining Insurance Sales
With overdraft and NSF fee income at historic lows, FIs are
looking for ways to diversify revenue. The sale of loan protection
products typically occurs at loan origination often resulting in
missed opportunities for both FIs and their borrowers. Income
Builder's innovative solution offers these products continuously,
providing multiple opportunities to make timely and personalized
offers. This approach ensures that borrowers receive relevant
product suggestions based on their loan status and actions they
take, enhancing the likelihood of acceptance and increasing overall
accountholder satisfaction.
Personalized, Real-Time Offers in Digital Banking
Income Builder differentiates itself by delivering loan
protection and insurance offers directly within digital banking
interfaces, a capability that is currently unmatched in the market.
Constant offers Income Builder via its current integrations with
the top online banking platforms.
To help accountholders avoid one-time, upfront charges, Constant
includes the premium cost in the borrower's current loan through
its automated loan modification feature. This makes it convenient
for accountholders to purchase the insurance product and increases
adoption.
Currently, accountholders can: 1) receive offers based on their
loan status and the steps they take to manage their loan, 2) access
product education, and 3) schedule calls or request contact for
detailed offers via user-friendly buttons on their loan account
pages.
Income Builder Phase 2 will include integrations with insurance
providers to extend the accountholder experience.
Maximizing Fee Income for FIs
This innovative approach helps FIs maximize fee income by
creating continuous sales opportunities for loan protection and
other insurance products. Constant's automated workflows, such as
skip-a-pay, due date change, CPI reversal, loan payoff, total loss
reporting and more, are designed to trigger relevant product
offers.
Additionally, FIs can utilize Constant's access to more than 120
core system fields to create targeted digital banners and campaigns
like promoting debt protection to borrowers who meet any mix of
requirements such as 1) skipped a payment in the last 90 days; 2)
selected increased auto expenses as the reason; 3) and are current
on their payments.
Supporting Data and Market Insights
Industry data shows that loan protection products sold at
origination penetrate less than 30-40% of all eligible loans
leaving significant potential for post-origination sales untapped.
This number can be significantly lower for FIs with large indirect
auto portfolios. Income Builder's platform addresses this gap by
offering products throughout the loan term, ensuring that
accountholders receive offers when they are most relevant and
needed. This approach not only increases product adoption rates but
also enhances the overall accountholder experience by providing
valuable financial protection solutions at critical times.
Join the Future of Loan Protection Sales
"Borrowers who didn't choose debt or asset protection when they
took out their loan rarely hear about these safety nets again, even
though they could protect against large, unexpected repairs or
expenses," stated Catherine York
Powers, Constant's CEO. "And our clients and prospects are
increasingly concerned about the drop in non-interest income due to
the heavy scrutiny of overdraft and NSF fees. By offering these
products continuously after origination, we help FIs diversify
their fee income and keep accountholders informed of their options.
The additional benefits include increased borrower engagement and
self-service and lower operating costs to further expand
margins."
Income Builder is available in Jack
Henry Banno, NCR Digital Insights, Q2, Alkami and in Lumin
Digital.
FIs looking to enhance their insurance product sales, create new
origination leads and improve borrower engagement can learn more
about Income Builder's innovative platform by visiting our
website.
About Constant
Constant is a leading provider of loan operations software
dedicated to helping FIs maximize their income, automate common
loan operations efforts, and improve borrower digital engagement.
Our platform is integrated with the top online banking platforms
and core processing systems to deliver a range of benefits to FIs
from revenue diversification and reduced operating costs to
increased self-service for accountholders.
For more information, visit Constant's website or contact
press@constant.ai
Media Contact
Catherine York Powers, Constant,
1 207-590-6100, press@constant.ai, constant.ai
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SOURCE Constant