{"id":145,"date":"2013-10-24T10:30:58","date_gmt":"2013-10-24T15:30:58","guid":{"rendered":"http:\/\/efgintelligence.com\/subprimepoint\/?p=145"},"modified":"2018-02-27T09:59:30","modified_gmt":"2018-02-27T15:59:30","slug":"five-keys-to-success-for-sub-prime-lenders-when-expanding-to-new-markets","status":"publish","type":"post","link":"https:\/\/efgintelligence.com\/lendingcurve\/five-keys-to-success-for-sub-prime-lenders-when-expanding-to-new-markets\/","title":{"rendered":"Five Keys to Success for Subprime Lenders When Expanding to New Markets"},"content":{"rendered":"
\"Steve
Contributing Author:
Steve Roennau
Vice President
Compliance
EFG Companies<\/figcaption><\/figure>\n

Subprime lenders are in growth mode and rapidly expanding in 2013.\u00a0 With expansion to new markets comes a myriad of challenges for the lender.\u00a0 Some of the challenges are faced directly by the lender itself and some possibly by the F&I Managers at the auto dealerships with whom they do business.<\/p>\n

Here are five keys to success for the subprime lender when expanding to new markets.<\/h3>\n
    \n
  1. Understand specific state laws and requirements.<\/b>\u00a0 Most lenders are likely very familiar with the laws and compliance measures that require attention in order to conduct business in a new market.\u00a0 For example, making sure your retail installment contract is state compliant is an obvious first step prior to moving in to a new market.\u00a0 However, if the lender markets its own suite of consumer protection products, it\u2019s important to ensure the product administrator<\/a> has done its due diligence to secure appropriate state approvals and has made necessary adjustments to its contracts as well.\u00a0 Handling all the state-specific requirements up front will facilitate a smooth transition to success in a new market.<\/li>\n
  2. Know the demographic trends and how they impact buyer behavior.<\/b>\u00a0 <\/i>If a subprime lender is making a move to enter a new market, the demographic study and analysis has already shown a viable business opportunity.\u00a0 However, do the market indicators for unemployment, the local income metrics, and consumer confidence provide an unique opportunity for lending and the sale of the lender\u2019s consumer protection products?\u00a0\u00a0 If so, what is the strategy to capitalize on this new market\u2019s opportunities?\u00a0 Answering these questions will help a lender tailor a meaningful, successful loan product offering in the new market.<\/li>\n
  3. Ensure your consumer protection products are a fit.<\/b>\u00a0 Different markets may present opportunities for the lender to differentiate its loan offering.\u00a0 Ensure the consumer protection product offerings<\/a> provide a solution to a consumer need in that market.\u00a0 Be confident that the marketing, pricing and product features speak to the demands of the new market and provide an opportunity to realize a profit.\u00a0 The right loan offering with appropriate protection products in the market will help drive success.<\/li>\n
  4. Delivery mechanisms must be sound.<\/b>\u00a0 Once a sound strategy is in place to facilitate the loan transaction and deliver the lender\u2019s retail installment contract, ensure a stable electronic platform is in place to rate, contract and submit the consumer protection products.\u00a0 The demand for e-commerce has never been stronger, so providing an e-solution to fulfill contracts is essential.<\/li>\n
  5. Maintain your brand.<\/b>\u00a0 Whether the lender operates with a direct or indirect model, it\u2019s imperative that the lender effectively communicates and manages its brand<\/a>.\u00a0 From an engaging and up to date web presence, to SEO, to effective brand reputation management, the lender should pay close attention to its brand and all its brand promises as it looks to expand and grow in to new markets.<\/li>\n<\/ol>\n

    EFG Companies<\/a> has a proven track record in helping lenders<\/a> expand their reach in to new markets. Contact EFG today<\/a> to develop a strategy designed to help you realize success as you grow your business.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Subprime lenders are in growth mode and rapidly expanding in 2013.\u00a0 With expansion to new markets comes a myriad of challenges for the lender.\u00a0 Some of the challenges are faced […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[30],"tags":[27,34,19,11,32,31,33,5],"class_list":["post-145","post","type-post","status-publish","format-standard","hentry","category-business-growth","tag-consumer-protection-products","tag-demographics","tag-indirect-lending","tag-lenders","tag-lending-laws","tag-new-markets","tag-product-administrator","tag-subprime"],"aioseo_notices":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p7ht2K-2l","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/efgintelligence.com\/lendingcurve\/wp-json\/wp\/v2\/posts\/145","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/efgintelligence.com\/lendingcurve\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/efgintelligence.com\/lendingcurve\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/efgintelligence.com\/lendingcurve\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/efgintelligence.com\/lendingcurve\/wp-json\/wp\/v2\/comments?post=145"}],"version-history":[{"count":13,"href":"https:\/\/efgintelligence.com\/lendingcurve\/wp-json\/wp\/v2\/posts\/145\/revisions"}],"predecessor-version":[{"id":816,"href":"https:\/\/efgintelligence.com\/lendingcurve\/wp-json\/wp\/v2\/posts\/145\/revisions\/816"}],"wp:attachment":[{"href":"https:\/\/efgintelligence.com\/lendingcurve\/wp-json\/wp\/v2\/media?parent=145"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/efgintelligence.com\/lendingcurve\/wp-json\/wp\/v2\/categories?post=145"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/efgintelligence.com\/lendingcurve\/wp-json\/wp\/v2\/tags?post=145"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}