Payment protection should be at a top priority for your institution
With many Americans dealing with debt and a precarious economy, payment protection is more important than ever and should be at the top of your offering list. Nearly 60 percent of Americans live paycheck to paycheck1, and credit card balances are at an all-time high.2 So, when the unexpected happens, odds are, your borrowers are going to fall behind on their monthly payment obligations.
When a borrower is potentially facing one of their most difficult life events – a sudden death of a family member, an unexpected illness or the loss of a job – having the ability to say “your loan was protected” can make the difference of your borrower choosing between necessities and loan payments that month.
But this can only happen when financial institutions offer payment protection consistently at every opportunity to all borrowers. Your payment protection provider should be working with you to pursue every avenue of payment protection and helping you take advantage of key opportunities.
What are the most successful lenders doing?
Analyzing from the top down
The most successful lenders we see across the U.S. are supporting payment protection programs from the top down. The larger your payment protection program grows, the greater the value that it brings back to the financial institution and its borrowers.
Successful partners look at their total return consistently, assessing not only what the program is returning in income, but what it is returning to the borrowers in benefits. The more borrowers protected, the more claims that are paid out – and that builds strong belief in payment protection programs across the organization. As of December 31st, Securian Financial paid more than $99 million in payment protection claims in 2024.
Looking for growth opportunities
Successful lenders assume the opportunity is there. For example, with eligible loan volumes in the range of $200 million, it is reasonable to expect payment protection programs to be in the $500,000 range. This means if you are writing $500 million in eligible loan volume, your program could be over $1 million in production. Having a true understanding of your program potential is key.
Utilizing a team approach
Getting the most impact out of your program is a team approach. Your payment protection provider should be helping you assess your opportunities for growth. They should help you answer key questions, such as: Is the program design the right mix? Are you missing valuable benefits in your offering? Are you missing an opportunity in your online loan application to educate and offer this product to your borrowers? Are you holding lenders accountable for the sale of the product? Answering these and other questions and working with the right provider can help get you on the right track for success.
Your trusted partner for what’s next
Securian Financial works closely with financial institutions across the country to establish strategies that can propel your program to its highest performance. We can help you understand the current state of your business, identify opportunities and help you implement them into your day-to-day business.
Contact us today, and let’s grow your program to its full potential.
