The Stellar Financial Group

We’re all familiar with how insurance and wireless companies bundle products and offer discounts to attract customers. Now that same approach is available for banks and credit unions through our bundled marketing solution. What sets Stellar’s solution apart is that it’s offered on a pay-per-performance basis with tiered discounts—meaning you only pay for the results we deliver.     To illustrate our bundled solution, here’s an example from one of our clients.      A northeast credit union with $1 billion in assets partnered with Stellar to bundle key products including direct auto loans, home equity loans, and money market accounts. Together, we developed an annual production schedule that was fully managed by our team.      Below are the product-specific results in loan and deposit volume generated through the first three quarters of 2024. #DirectAutoLoans, #HomeEquity, #MoneyMarketAccounts

Let's explore the real value of a "Direct" Auto Loan Recapture Program #autorecapture, #autorefinance, #delinquencies

In February, we launched our Indirect Retention Plus program that has become a huge success. This could not have happened without our initial group of 10 clients that had the courage to try a new approach to solve an old problem. A big shout out to those valued clients that shared our vision of doing something that had not been done successfully in the past. • Amarillo/Lubbock National Bank • First Federal Credit Union • Focus Credit Union • ACU of Texas • Baton Rouge Telco Federal Credit Union • SnoCope Credit Union • Heritage Community Credit Union • Directions Credit Union • Pima Federal Credit Union • Maine State Credit Union As a group, they have opened 1,945 checking accounts and counting on their first campaign with an estimated $1.25 million in deposits. #IndirectRetentionPlus, #CheckingAccounts, #Deposits

Here are some thoughts on the recent Fed rate cuts. #AutoLending #FedRateCuts #Refinancing #Finance #AutoLoans #CustomerRetention #EconomicImpact #MarketingStrategy #FinancialServices #Banking #Fintech

As we anxiously anticipate the Federal Reserve cutting interest rates, let’s review the lending opportunity that is starting to develop. This opportunity is not only related to cuts in interest rates but also includes the growing number of opportunities nationwide. When we talk about opportunities, we’re referring to the number of auto loans that exist nationwide that qualify to be refinanced. Let’s take a look at the numbers: ·      February 2022 – 3,056,472 Loans ·      December 2022 – 1,424,336 Loans ·      May 2024 – 2,034,452 Loans As you can see, the pandemic significantly reduced the number of available loans nationwide during 2022 due to lack of vehicle inventory and rising interest rates. Now that dealer inventory has been robust for the past 18 months, we are starting to see the numbers headed back to historic levels. The anticipated cuts in interest rates will certainly accelerate that growth. Now is the time to consider installing an auto recapture program to take advantage of this opportunity. Regardless of whether an indirect or direct program fits your institution, we have the solution. One thought on direct versus indirect auto recapture programs. We have significant data showing a direct program outperforms when tracking delinquencies and charge-offs. With delinquencies growing across the board due to past and current inflation, this is a critical point in making a decision on which approach is best. We have numerous clients that have utilized our direct approach simply based on this fact. Below you will see what one of our clients states about executing The Stellar Financial Group’s “Direct” auto loan recapture program.  #AutoLoans, #Chargeoffs, #Delinquencies

Start retaining indirect members/customers at a rate of 35% vs. the 5% most realize today. New checking and direct deposit accounts, increased deposits, and accelerated member/customer growth are now a reality.  #IndirectRetentionPlus, #CheckingAccounts, #Deposits, #DirectDeposit

They said it couldn’t be done, but our clients are experiencing something far different. #IndirectRetentionPlus, #CheckingAccounts, #Deposits, #DirectDeposit

Over the past 18 months, we’ve been preaching how market conditions have created a unique opportunity to compensate for low mortgage volume with home equity lending. Credit has become far more expensive as consumer spending has shifted towards credit card spending versus debit cards. Home equity values have been at historic levels, but according to TransUnion, those numbers are starting to decline slightly. The clients we are working with have shown tremendous results in taking advantage of the market that has existed over the past 18 months and we expect that to continue into 2025. TransUnion recently released its Home Equity Trends Report for Q1 2024. In case you missed it, we have included the full report below for your convenience. Hopefully, the information included will be thought-provoking and assist in upcoming strategic planning sessions as we enter the second half of 2024. #HomeEquity, #HomeEquityLoans, #Mortgage

Here at Stellar, we’ve always approached the growth of our client’s banks and credit unions with a two-pronged approach — acquisition of new account holders and retention of existing accounts. The latter is something often overlooked. That brings me to our current new product launch targeting the retention of indirect auto loan customers and members. The industry has tried to address the issue without success. Today, there is a solution. Our solution takes what used to be at best a 5% retention rate of these account holders after the loan is paid-off to what we see today of potentially somewhere between 30% and 35%.    We first beta-tested our approach back in late 2023 with success rates that exceeded even our expectations. Clients that went live on the program as we launched earlier this year have even exceeded the results we saw in our beta testing. We’ve expanded the target group to include direct auto loans, mortgages, and recreational vehicles. The chart below shows how results have developed over the past seven months. If you don’t believe the data give us a try. There are no upfront fees, just a success fee for each checking account opened. We’re betting you’re going to be very successful. #newaccountholders, #memberretention, #accountacquisition, #indirectautoloans https://lnkd.in/gm69eUCv

We had a fantastic time at this year’s Financial Brand Forum. It was wonderful not only to meet new people but also to reconnect with our valued clients. The event provided us with the perfect opportunity to gain valuable insights into the latest products and solutions that financial institutions are currently seeking. We are already looking forward to next year’s event, eager to build on the connections we made and the knowledge we gained. #FinancialBrandForum2024, #deposits, #homeequity https://lnkd.in/eRVE6bNH