Fintech Channel expansion and diversification are critical to any organization to ensure success and viability are not overly dependent on a single marketing channel, i.e., only TV spots or only print ads. Many financial technology companies (fintechs) start their business online and choose to focus on digital channels. And to further complicate matters, choose to build their business through an affiliate marketing approach resulting in a reliance on an intermediate business model with single-channel dependency.
Creative Solutions International has been in business over 25 years and has helped a variety of companies de-risk their business model by diversifying their acquisition channels, improving the credit quality of the portfolio and accelerating growth.
Recently, we helped an online lender that was wholly dependent on an affiliate model. First, we developed a comprehensive strategy to test and validate two new marketing channels, direct mail and email, including establishing and implementing the entire supply chain. We also developed a pre-approved credit list management and testing strategy to attract and originate a higher quality credit prospect.
The results far surpassed the clients’ goals and objectives:
- Direct mail response rates increased by 400% over previous direct mail campaigns that were tested and deemed failures
- Cost per dollar booked was 60% less than their affiliate channel
- Losses were 58% lower than their affiliate channel
- Additionally, the accounts acquired via direct mail had a 20% higher re-borrow rate compared to affiliate generated accounts
Fast forward and the direct mail channel represents nearly 45% of their overall new account volume and 61% of their profit.
If your business needs help expanding and diversifying its channels, call 302-543-8533 email us today to learn how we can help your business succeed.