Increase fee income, lengthen the life of consumer loans, and generate goodwill among loan customers with this easy-to-adopt special offer.
Customers are attracted to any offer that will ease their loan payments, especially at times when cash flow is an issue. That’s why WordCom’s Skip-A-Payment program is so popular with loan customers and so successful for financial institutions.
A WINTER OFFER
This mid-America bank gave loan customers the chance to skip a loan payment at a time of year when bills and expenses pile up. In exchange for the monthly reprieve and the chance to use the money elsewhere, customers paid a small processing fee.
Nearly one-third of the customers took advantage of the offer. For the bank it meant significant gains.
• 31% responded (1,087 loan customers)
• $26,047 in fee income from handling fees
• Mail program cost only $5,687
• 358% Return On Investment ($20,360)
The great advantages for the bank are the ease with which the Skip-A-Payment program operates and the low cost, while it generates income. And of course, the borrower doesn’t really skip the loan payment. It extends the life of the loan an additional month.