The Financial Brand Insights - Fall 2021

” Do you use the same criteria to pre-approve borrowers as those used in application approval? Using consistent evaluation criteria from start to finish can help increase the effectiveness of your direct mail offers.

Introducing a Better Way to Select Potential Borrowers DMS offers a process that credit card issuers and lenders can leverage to improve their direct mail offers that eliminates the typical challenges. Leveraged at the marketing stage of the customer lifecycle, the process uses credit file archives and the tri-bureau DMS Summary Attributes ® to create pre-approved offers that can potentially generate a greater return of approved applicants. The DMS marketing stage methodology addresses the need for consistent evaluation by providing uniform calculations throughout the applicant review process. This approach eliminates manual coding required by traditional methods and improves speed to market. The primary phases include: ● Preliminary mailing list preparation ● Population processing and creation of credit file archives ● Generation of DMS Summary Attributes ® , custom attributes, and custom scores ● Completion of marketing mailing Approaching the generation of marketing offers this way helps mitigate risk and maximize customer acquisition. Companies typically find that they can improve the effectiveness of their marketing spend and increase customer satisfaction through more effective offers. n Carson York is the senior vice president of business development at Digital Matrix Systems (DMS) , helping clients gain the most value from their data through the DMS suite of data access , storage , and analytics solutions.

Introducing a be�er way to select poten�al borrowers.

FromMarketing Stage to Application Approval

Using the same approval criteria for both marketing and production is important to ensure equivalent evaluation across the entire customer lifecycle. Without consistency in both phases, the processes that are used to select and solicit potential applicants can be difficult and may ultimately lead to ineffective decisions and dissatisfied consumers. Using the same coded model and attributes at both the marketing stage and origination provides better risk assessment and improves the effectiveness of marketing campaigns. This sounds deceptively simple, but there are challenges that come into play when attempting to follow this best practice. The traditional approach to selecting and soliciting applicants using the same criteria they will be evaluated with for approval has several key issues. Attributes that make up the scorecard(s) need to be coded correctly and tested properly. The coding and testing process is expensive and time-consuming and opens the door to potential errors due to manual recoding of attributes and scorecards. This can be complicated further if more than one bureau is being used for marketing, therefore requiring the entire process be repeated.

Increase the effec�veness of your direct mail offers.

Using the same approval criteria for both marke�ng and produc�on is important. Without consistency in both phases, the processes that are used to select and solicit poten�al applicants can be difficult. Prevent ineffec�ve decisions and improve customer sa�sfac�on using the marke�ng stage process from Digital Matrix Systems.

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DMS Summary A�ributes® consolidate tri-bureau credit informa�on for easier analysis Gain consistency in calcula�ons and a�ribu�on of scores Establish a seamless analy�cs process Maximize customer acquisi�on

Do you use the same criteria to pre-approve borrowers as those used in application approval? Reach out today to improve the effectiveness of your marketing campaigns.


© 2021 Digital Matrix Systems, Inc.





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