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Proprietary / Confiden0al Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 © 2016 Harland Clarke. All marks are the property of their respective owners. All rights reserved. Presenta0on materials and video replay will be provided within one week Have ques0ons? Use the ques0ons panel We’ll field them as we go and during the Q&A recap at the end of the call

Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

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Page 1: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

Proprietary/Confiden0al

BestPrac*cesandNextPrac*cesforConsumerLoanGrowth

AHarlandClarkeWebcastSeries

July21,2016

© 2016 Harland Clarke. All marks are the property of their respective owners. All rights reserved.

Presenta0onmaterialsandvideoreplaywillbeprovidedwithinoneweekHaveques0ons?Usetheques0onspanelWe’llfieldthemaswegoandduringtheQ&Arecapattheendofthecall

Page 2: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

Today’sPresenters

Photo Here

2

StephenieWilliamsSeniorMarketStrategist,LendingSolu0ons,HarlandClarke

●  20+yearsdirectmarke0ngexperienceinretailandfinancialservices

●  CRMandROIspecialist

SteveNikitasSeniorStrategistDirector,HarlandClarke

●  30yearsexperience,includingseniorexecu0veatfinancialins0tu0oninNewYork,CaliforniaandMassachuseXs

●  LoanporYolioandaccountholderreten0onspecialist

Page 3: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

Agenda

3

StateofLendingMarketLatesttrends

PainPointsAcquisi/on,U/liza/on,Reten/on

AcquireandRetainBestPrac/cestoachievegrowth

PorGolioEngagementU/lizeandRetain

Crea*veApproachGoingtomarket

Page 4: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

> > > StateofLendingMarket:Latesttrends

Page 5: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

80%

48% 48% 46% 44% 36%28% 24% 20% 20%

0%

79%

38% 33% 41%26%

38% 36%21% 18% 17% 17%

0%10%20%30%40%50%60%70%80%90% BANKS

76%54% 48% 39% 39%

26% 24% 22% 22%13% 9%

83%

52%39% 46%

24%29%

18% 17% 16% 12% 5%0%20%40%60%80%100%

2016 2015

LoanGrowthisTopPriorityforFinancialIns*tu*ons

5 ©2016HarlandClarkeCorp.Allrightsreserved.Source:What’sGoingOnIn2016–CornerstoneAdvisors

CREDITUNIONS

Page 6: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

LendingMarketTrends

6 Source:FreddieMacDecember2015EconomicandHousingOutlook

RefinancingShareofOrigina*onsForecast

TotalHomeSalesForecast(Millions)

©2016HarlandClarkeCorp.Allrightsreserved.

Refinancingistrendingdown*

Homesalesaretrendingup

*whiletheoverallrefimarketistrendingdown,recentlyrefiac0vityhasstartedtoheatupagain.

Page 7: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

TheMarketisFavorable

7 ©2016HarlandClarkeCorp.Allrightsreserved.

Millions

AutoSales(inMillions)

Source:CenterforAutoResearch,July2015.

$8,000

$6,000

$4,000

$2,000

$0

Loanbalance

Delinquencyrate

5%

4.5%

4%

3.5%

3%

UnsecuredLoans(balancesup,delinquenciesdown)

BalancepercustomerDelinquencyrate

Source:Bankrate.com

16.1

13.2

10.411.6

12.814.5

15.616.5 17.2

17.5 17.7 17.8

0

2

4

6

8

10

12

14

16

18

20

200720082009201020112012201320142015201620172018

Page 8: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

> > > PainPoints:Acquisi/on,U/liza/on,Reten/on

Page 9: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

9

Newloangrowth

goalRefis Payoffs

Netnewloangrowthgoal

+ + =

Page 10: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

GrowthIsn’tEasy

10

Challenges:•  Cau0ouseconomy•  Stockmarketvola0lity•  Increasedcompe00on(P2P,Fintech)•  HELOCresets•  PorYoliorunoff•  Mortgagepurchasevs.Refi•  Autoleasing

•  2015recordyear•  2016projectedtobeat‘15

Opportuni*es:•  Homesales•  Autosales•  PersonalloansSolu*on:Marke0ngandlendingworkingtogether,crossfunc0oncollabora0onvs.workinginsilos

©2016HarlandClarkeCorp.Allrightsreserved.

Page 11: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

StrategicPlanningProcess

11 ©2016HarlandClarkeCorp.Allrightsreserved.

Discover

Define

Design

Deploy

Understandingyourcustomer’scharacteris0cs,needsandbehaviors

Developclearobjec0ves,devisesuccessmetricsandevaluatefeasibility

Createprogramstrategies,includingaudienceselec0on,offer,crea0vemessageandtes0ngmethodologies

Execu0ngtheprogramformaximumresults

Page 12: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

> > > Acquire&Retain:BestPrac/cestoachievegrowth

Page 13: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

LoanGenera*onAudiences

13

The segments delivering the greatest return are limited in size

3 Non-Shopping Account Holders

4 Non-Shopping Prospects

1 Shopping Account Holders

2 Shopping Prospects

3

2

4

5

5 Non-Shopping Account Holders/ Prospects

©2016HarlandClarkeCorp.Allrightsreserved.

1

Page 14: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

Pre-ScreenCreditTriggers

14

1

3

2

4

5

1 Shopping Account Holders Credit Triggers

2 Shopping Prospects Credit Triggers

©2016HarlandClarkeCorp.Allrightsreserved.

The segments delivering the greatest return are limited in size

Page 15: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

Grow&RetainwithCreditTriggers

*Sourcefor75%lirstat:Datamyx15 ©2016HarlandClarkeCorp.Allrightsreserved.

Dailyiden/fica/onofyouraccountholdersandprospectswhoareshoppingforaloan

Page 16: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

Upto5%ofAccountHoldersAreLoanShopping

*Manyvariablesimpactcampaignsuccess.Theinforma0ononearningsorpercentageincreasesthatiscontainedwithinthiscasestudyisprovidedfordemonstra0vepurposesonly.HarlandClarkedoesnotguaranteeorwarrantearningsorapar0cularlevelofsuccesswithacampaign.

16

Creditinquiriesmadeinthelast30days

ProductType Count PercentofFile

Mortgage 3,802 52%

Auto 816 11%

CreditCard 1,806 25%

Installment 897 12%

Total 7,320 100%

Es0matednumberofnewloanapplica0onsgeneratedbasedonhistoricalcampaignresponserateof7.8%datais571newloans*

3-5%ofaccountholdersareshoppingeachmonth

©2016HarlandClarkeCorp.Allrightsreserved.

CreditScore Count PercentofFile

<620 1,528 21%

620-639 486 7%

640-719 2,604 36%

720+ 2,702 37%

Total 7,320 100%

Page 17: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

BeProac*veWithPre-ScreenCampaigns

17

1

3

2

4

5

3 Non-Shopping Account Holders Pre-Screen Campaigns

Perpetual Pre-Screening

4 Non-Shopping Prospects Loan Campaigns

©2016HarlandClarkeCorp.Allrightsreserved.

The segments delivering the greatest return are limited in size

Page 18: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

18 ©2016HarlandClarkeCorp.Allrightsreserved.

$$$$

$Highrateloans

%Highpayment

loans

$

Calculatepo

ten*

al

savings

PreselectedRefinance

offer

Loan-to-value

Homevalue

Savings

OriginateRemainingbalance

LoanAcquisi*on–QuarterlyPre-screenCampaigns

Page 19: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

LoanAcquisi*on–QuarterlyPre-ScreenCampaigns

19

Non-ShoppingAccountHoldersandProspects

•Meetyourunderwri0ngcriteria•Highpropensitytorespond•Scoredondemographics,creditbehaviorandusage

©2016HarlandClarkeCorp.Allrightsreserved.

Page 20: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

ParadigmShii:Tradi*onalApproach

20 ©2016HarlandClarkeCorp.Allrightsreserved.

•Resourceconstraints

•Workeffortinefficiency

•Limitedproductpromo0on

Page 21: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

ParadigmShii:NextApproach

21

●  Moreefficientuseofmarke0ngresources●  Onlyhavetodevelopcriteriaforloanproducts

●  Captureloansthatdon’tgetmarke0ngsupport

©2016HarlandClarkeCorp.Allrightsreserved.

GreaterROMICreatesloyaltyw/thefinancialins*tu*onBekerconsumerexperience

o Offeravailablewhentheyneedo Noguessingonapproval

Page 22: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

“NextPrac*ce”:PerpetualPre-screens

22

FinancialIns0tu0onaccount

holderbase

Quarterlycredit

prescreen

Checkindividualprescreensagainstproductlendingcriteria

Compilepersonalizedmul0-product

offers

Communicateatalltouchpoints

Convertpreselectedleadsto

fundedloans

Campaignanalysis

©2016HarlandClarkeCorp.Allrightsreserved.©2016CUneXusSolu0onsInc.Allrightsreserved.

Page 23: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

Invita*ontoApply

23

1

3

2

4

5

5 Non-Shopping Account Holders/ Prospects Invitation to Apply

©2016HarlandClarkeCorp.Allrightsreserved.

The segments delivering the greatest return are limited in size

Page 24: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

> > > U*lize&Retain:PorDolioengagement

Page 25: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

PorGolioEngagement

25 ©2016HarlandClarkeCorp.Allrightsreserved.

Segmenta*on•  Iden0fy•  Target•  Incen0vize

Solicita*on•  Create,implementcampaigns

Op*malTarge*ng•  Developsta0s0calmodes•  Matchoffers•  Op0mize0ming

Grading•  Sub-classify

CreditRisk,Marke0ng,Finance

Page 26: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

26

BestPrac*ce–EngagementAc*vi*es

26 ©2016HarlandClarkeCorp.Allrightsreserved.

Onboarding

Ac*va*on/U*liza*on

EndofTermReten*on

Page 27: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

> > > Crea*veApproach:Goingtomarket

Page 28: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

FirmOfferofCredit

Anofferthatmustbehonored…IF

●  Consumers0llmeetscriteriausedinselec0onprocess

●  Consumermeetsothercreditcriteriaestablishedpriortooffer

28

CollateralRequired

CreditDataDerivedList FirmOffer

EligibilityRequirements NotMet

CollateralProvided

NoOffer

©2016HarlandClarkeCorp.Allrightsreserved.

NoOffer

CollateralProvided

CollateralNotProvided

Required NotRequired

Met

VALIDOFFER

VALIDOFFER

Page 29: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

RememberYourAlphabet

29

OFF ER R EQU I R EMENTS

Opt-OutNo*ce Consumerhastobegivenareasonablemeanstodiscon0nueadver0sementsofthissort.

Product Productwhichtheconsumerisbeingpresented.

Qualifica*on Astatementof“pre-qualified”,“pre-approved,”“pre-selected”.

Rate Theratetheconsumercanpay.Whentheterm“aslowas”isused,amaximummustalsobeprovided.

SumofMoney Theminimumloanamount.Arangeisfine,solongasthereisaminimum.

TermsandCondi*ons

1.  Terms:Thelengthof0methattheofferisvalid;typicallygreaterthantwodays.

2.  Condi0ons:Theeligibilitycondi0onsthatmustbemetfortheoffertobevalid.Ifcollateralisrequired,itmustbemen0oned.

©2016HarlandClarkeCorp.Allrightsreserved.

Contentisintendedtoconveygeneralinforma0ononlyandnottoprovidelegaladviceoropinions.

Page 30: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

PusngitAllTogether

30

StatementofQualifica*on

Long-FormOpt-Out

TermsandCondi*ons

MinimumAmount

MaximumRate

Short-FormOpt-Out

©2016HarlandClarkeCorp.Allrightsreserved.

Page 31: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

PersonalizedOmni-Channel

31

Email

DirectMail

CallCenter

Mobile

©2016HarlandClarkeCorp.Allrightsreserved.

Online

Page 32: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

StrongCrea*veElevatesSuccess!

Threekeyelementsforeffec0vedirectmarke0ngoflendingproducts

32

AudienceData/Targe*ng

1

Offer2

Crea*ve3

©2016HarlandClarkeCorp.Allrightsreserved.

Page 33: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

Alloca*ngCrea*veRealEstate:

1.  Clearlybranded2.   Compe**verateoffer3.  Preapproved4.   Fulloffer5.  Dealsweetener6.  Thoughtstarters7.  Urgency8.  Calltoac0on9.  Responsechannels10.  Shortno0cetermsandcondi0ons11.  Longno0cetermsandcondi0ons(backofleXer)

33 ©2016HarlandClarkeCorp.Allrightsreserved.

Page 34: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

34 ©2016HarlandClarkeCorp.Allrightsreserved.

StrategicPlanningProcess

Discover

Define

Design

Deploy

Understandingyourcustomer’scharacteris0cs,needsandbehaviors

Developclearobjec0ves,devisesuccessmetricsandevaluatefeasibility

Createprogramstrategies,includingaudienceselec0on,offer,crea0vemessageandtes0ngmethodologies

Execu0ngtheprogramformaximumresults

Page 35: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

Q&AWrapUp

Typeyourques*onintheques*onspanel

Stephenie Williams Senior Lending Strategist Steve Nikitas Senior Strategist

Presenta*onmaterialsandvideoreplaywillbeprovidedwithinoneweek.Visitharlandclarke.com/webcastsforthisandpreviousevents.

harlandclarke.com/LinkedIn

harlandclarke.com/TwiXer

www.harlandclarke.com/webcasts

35

Page 36: Best Prac*ces and Next Prac*ces for Consumer Loan Growth...Best Prac*ces and Next Prac*ces for Consumer Loan Growth A Harland Clarke Webcast Series July 21, 2016 ... • Personal loans

ThankYou