Customer Success Story
FedChoice Federal Credit Union Boosts Loan Growth With MeridianLink
How FedChoice Federal Credit Union Increased Loan Growth With MeridianLink Insight by Leveraging Data-Driven Segmentation.
Profile:
• Established in 1935
• $436M in assets
• Headquartered in Lanham, MD
• Locations include physical and digital options
• www.fedchoice.org
FedChoice Federal Credit Union
Established in 1935 by two dozen IRS employees, IR Federal Credit Union initially offered savings accounts
and personal loans to their fellow employees. Shifting to FedChoice Federal Credit Union in 2005 to serve
federal civilian employees and their families, the credit union is now home to almost 25,000 members who
trust the institution for their day-to-day financial needs, future prosperity, and retirement security.
The Challenge
FedChoice needed a better way to segment past applicants and expand loan offerings amid rising rates.
After completing successful auto loan and credit card pre-approval campaigns, FedChoice began searching for a solution that offered members additional loan opportunities. With rate increases from the Federal Reserve happening in rapid succession, FedChoice knew that personal loans and home equity products were the best opportunities to provide members with potential rate and payment relief. The credit union knew a key audience to target would be members who had applied for loans in the past but chosen not to fund for unknown reasons—however, the credit union was challenged with efficiently segmenting that audience from its database.
The Solution
FedChoice realized that pairing MeridianLink® Insight with its existing MeridianLink products provided the credit union with a deeper understanding of its data, allowing for improved member segmentation in addition to revealing operational inefficiencies in its lending process.
The credit union was able to filter its MeridianLink® Consumer and MeridianLink® Opening data by a wide variety of criteria through Insight and focused on a new priority segment: members who had applied and been approved for a loan with the credit union during the last two years, met credit standards, and had targeted tradelines.
Through Engage, FedChoice then identified additional members who met similar criteria to that within Insight’s targeted list for personal loans and HELOCs. The campaign targeted members through a multichannel approach including both mail and email touchpoints and incentives to drive the target audiences to act.
Why FedChoice Selected MeridianLink
Enhanced Data Segmentation & Targeting. FedChoice needed a way to efficiently segment past loan applicants who didn’t fund their loans
Operational Efficiency & Real-Time Decision-Making Traditional processes were reactive and inefficient. With MeridianLink Insight, FedChoice shifted to real-time data analysis
Higher Loan Conversion & ROI. By leveraging MeridianLink Engage for targeted multichannel outreach (email and mail), FedChoice boosted loan funding by 50% in just four weeks
The Results
The addition of Insight also identified areas causing operational bottlenecks, allowing FedChoice to shift away from a historically reactive approach to real-time management. Better insight into how loan officers were responding to members through all steps of the origination process led to a simplified overall process and a greater ROI for loans in process.
This deeper visibility led to meaningful actions that saved time and improved the borrower experience.
