Win and retain cardholders with personalization

For years, the card market has been crowded with lookalikes. Consumers looking for a new card are faced with limitless options, but most cards on the market really only differ from each other in their APR and rewards programs. There’s only so many ways you can spice things up with cash back before you run into the hard limits of what you can sustain with current interchange rates, and if regulators compress those rates, the reward programs they support will evaporate overnight.

If card providers want to stand out from the crowd, they need a new dimension for personalization. The trouble is, most credit platforms simply don’t offer any other ways to customize a card program. You have a limited toolbox—credit limit, interest rate, rewards, and fees—and anything beyond that is a technical impossibility on the majority of systems.

That’s where card programs on LoanPro stand out. Powered by patented technology like transaction level credit™, program managers can differentiate themselves from competitors with unmatched personalization and adaptability. They can customize programs to suit individual cardholders, matching their purchase preferences, cash flow needs, and evolving financial situation.

How transaction level credit™ works

Transaction level credit™ allows managers to offer different interest rates and deferral options for transactions depending on purchase and account details, turning the financial mechanics of the card into a first-of-its-kind reward and incentive program.

When a cardholder makes a purchase, LoanPro automatically sorts it into a spend category based on the program manager’s own business logic. Purchases can be sorted by merchant, ZIP code, dollar amount, spend velocity, and other factors. More nuanced rules are also possible, balancing multiple factors into account as transactions are categorized.

Each spend category has its own interest rate, interest deferment, and credit limit, all feeding into a total credit limit across the entire account. Spend categories are fully configurable as well, meaning you can create any number of categories and modify which kinds of transactions route to them.

Launching personalized programs

LoanPro offers robust product configuration without compromising speed-to-market. Where other platforms might require months of back-end coding for even simple changes, LoanPro has built out-of-the-box programs that you can further configure to meet your customer’s needs. Here’s just a small sample of the kind of card programs you could launch:

• Credit builder cards. Offer incentives like interest deferment when borrowers keep their utilization rate low and consistently make payments on time.
• Family cards. Give families multiple access points to a single, convenient line of credit. Parents control access for children, allowing them to use a family line of credit with strict spending limits, purchase restrictions, and total visibility.
• Retail-partnered cards. Pair cash back or reward points with lower interest rates and deferred payments at preferred retail partners and locations. Seamlessly convert purchases into linked BNPL installment loans to give borrowers repayment flexibility.
• Small business cards. Cater to companies’ unique cash flow needs with custom payment schedules and deferred interest on equipment purchases and certifications.
• Asset-backed cards. Connect cards to private collateral or business equity, allowing you to offer greater financial flexibility while limiting risk. Or re-energize your existing HELOC product by pairing it with virtual and hybrid cards.

And programs like those are just the start. With LoanPro, you can launch a custom card program in just weeks with no back-end coding, and continually support those programs with best-in-class servicing and collections.

Adapting cards to evolving needs

Credit providers on legacy card platforms don’t just face issues at launch. Every time they modify an account—whether to comply with regulations like SCRA, or to adjust with a borrower’s changing financial situation—they need to do it through manual processes, often navigating through multiple separate software systems.

Contrast that with LoanPro’s end-to-end card platform: Card programs and individual accounts can be effortlessly modified, either through agent action or automations. LoanPro has also built out automated processes for common reasons to update accounts, like complying with MLA and SCRA, adapting to a bankruptcy, or implementing a new payment schedule.

Creating and streamlining program updates is straightforward and simple, taking only a fraction of the time that you’d be waiting for a legacy system to develop an update. When the COVID-19 pandemic disrupted their borrowers’ employment, LoanPro client Best Egg was able to launch several complementary programs to relieve financial hardship, all in just 60 days.

Delivering value to your customers and your bottom line

LoanPro’s card programs and transaction level credit™ technology offer tangible benefits to drive your key objectives:

• Enter new lending markets. Attract new borrowers with a new axis of personalization.
• Stay CARD Act compliant. Effortlessly adhere to federal card regulations.
• Increase customer wallet share. Use personalized incentives to drive higher spending volume.
• Comprehensive statements. Automatically generate statements that breakdown which spend category each purchase was sorted to.

If you want to see how your card programs can reach new audiences and build customer loyalty, reach out to us. We’d love to show you how it works.

And for more insights on reshaping the future of card programs, check out our recent webinar with Colton Pond, CMO of LoanPro, Craig Rismiller, EVP of Strategic Initiatives and Partnership Development at Amount, and Tedd Huff, host of Fintech Confidential.