Hear the latest from industry experts on how FIs are launching innovative campaigns to capture the elusive credit-qualified consumer. Learn: the latest trends in credit marketing lenders need to know, the digital channels that are gaining traction and how to gain a competitive advantage when promoting your lending products.

1. © 2019 Experian Information Solutions, Inc. All rights reserved.
Experian and the Experian marks used herein are trademarks or registered trademarks of Experian Information Solutions, Inc.
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DIGITAL CREDIT MARKETING:
2019 Trends &
Best Practices
February 5, 2019

2. © Experian2
Our Conversation Today
• Introductions
• Inflection Point: The Changing Credit Landscape
• New Approaches to Credit Marketing
• Experian Best Practices & Use Cases
• Q & A

3. © Experian3
Introductions
Aaron Suplizio
Senior Director, Product
Experian
Andrew Davidson
Chief Insight Officer
Mintel Comperemedia
Brittany Raasch
Marketing Manager
Experian
• The senior product leader
responsible for Experian’s
prospecting suite of solutions
• Led go-to-market strategy for
high-growth verticals including
Fintech & Insurance
• An expert in cross-channel marketing
intelligence, consumer behavior and
global trends
• Predicted the evolution in payments
marketing for the past 23 years
• Manages digital marketing strategy
including campaign strategy and
execution, analytics, search engine
optimization and paid search
• Held digital marketing roles for
consumer brands
February 5, 2019 Digital Credit Marketing: 2019 Trends & Best Practices

4. © Experian4
2019 Trends
February 5, 2019 Digital Credit Marketing: 2019 Trends & Best Practices
Inflection Point:
The Changing
Credit Landscape
New Approaches
to Marketing
The Growing
Importance of
Affiliates
The Evolution of
Influencer Marketing

5. © Experian5

6. Inflection Point: The Changing
Credit Landscape

7. © Experian7
Changing credit landscape requires an
adjustment of the traditional approach
18.89% was the Average Variable Go-To Rate for credit cards in targeted
acquisition DM in Q3 2018 up from 17.24% YAG
February 5, 2019 Digital Credit Marketing: 2019 Trends & Best Practices
Household debt reached $13.29 trillion in Q2 2018 after rising for
16 straight quarters
The Federal Reserve raised its target federal funds rate to
2.25% - 2.50% in December
Average credit card APRs offered to consumers via targeted direct
mail reached an all-time high according to Mintel Comperemedia
VC investment is powering fintech innovation across the
lending landscape

8. © Experian8
SoFi campaign tackles the stigma of debt head on
64%Millennials feel the
amount of debt they
own causes them
significant stress
February 5, 2019 Digital Credit Marketing: 2019 Trends & Best Practices

9. © Experian9
Shifting opportunities
February 5, 2019 Digital Credit Marketing: 2019 Trends & Best Practices
Lock in a favorable fixed rate
With Figure loan rates starting at 5.49% APR, you’ll benefit
from an APR that’s often lower than those of personal loans
and credit cards. Enjoy predictable monthly payments with a
consistent fixed rate.
Figure launches
Home Equity Loans

10. © Experian10
Innovation in POS financing offers an alternative
• APRs from 0% - 30%
• Pay through partner store or with virtual card
February 5, 2019 Digital Credit Marketing: 2019 Trends & Best Practices

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Inflection point: The changing landscape
1
Reassure consumers with options to
protect and support them in a rising rate
environment
2
Take a holistic approach to messaging that
is sensitive to the stress of owning and
talking about debt
3
Look to counter competing alternative
forms of credit instead of taking a siloed
approach in messaging

12. New Approaches to Marketing

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Offer Channel *Q3 2016 *Q3 2017 *Q3 2018
Digital 45% 48% 50%
Online on Website of Card/Bank 12% 13% 12%
Email from Card/Bank 10% 11% 12%
Online on Third-Party Website 9% 10% 12%
Card or Bank Mobile App 5% 6% 6%
Text Message 4% 3% 3%
Social Media 5% 5% 6%
Mail 22% 22% 24%
In-Person 22% 19% 17%
Phone 8% 7% 5%
Digital channels account for half of new credit card applications
Q. Which of the
following best
describes how you
obtained the offer
for the [Card]?
*Survey responses represent
12 months ending at the
listed date.
How obtained new card application
February 5, 2019 Digital Credit Marketing: 2019 Trends & Best Practices

14. © Experian14
Social media packed a punch
with more than 744M Paid
Facebook impressions
Chicago media buys
overindexed
Display and online video buys with foodie
publishers like Eater and Serious Eats
Robust TV spend against fall awards
shows and sports events.
Direct mail volume for Savor was
below average, indicating a digital
first strategy
Craves
spontaneous,
social experiences.
Social media
sparks ideas for
spending and
activity.
Omni experience: Savor targets the Chicago Millennial foodie

15. © Experian15
-
10
20
30
40
50
60
70
80
FacebookImpressionVolume(M)
August:
Tastemaker
Chicago
September:
#savormoments
November:
New creative
strategy
October:
Bottom of funnel,
targeted ads increase
October:
#Savormoments
promoted during
MLB Playoffs
December
Partnership
with Postmates
Savor used paid Facebook to promote experiences Millennials crave
February 5, 2019 Digital Credit Marketing: 2019 Trends & Best Practices
Source: Pathmatics 8/1/18-12/31/18

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August September October November Campaign YTD
Television
Direct Mail
Desktop Display
Mobile Display
Desktop Video
Paid Facebook
Email
Print
Marketing Volume
0-10%
10-30%
30-50%
50-70%
70%+
TV and FB were favored most heavily in Capital One sequencing
February 5, 2019 Digital Credit Marketing: 2019 Trends & Best Practices

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Some issuers are trying new channels
Amex spent $79M
on Paid Facebook
Ads in 2018 up from
$36M in 2017
February 5, 2019 Digital Credit Marketing: 2019 Trends & Best Practices

18. © Experian18
Targeted DM still a key ingredient in the media mix
910 million
acquisition DM offers
were received by
consumers in Q2
2018 vs. 919 million
YAG – virtually flat
February 5, 2019 Digital Credit Marketing: 2019 Trends & Best Practices

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Combining DM & Email can be an effective strategy for regionals
Subject: Andrew, earn $200 Cash Back
with the TD Cash Credit Card
October DM campaign
Email sent: 10/19/2018
Volume: 267K
Read Rate: 22%
February 5, 2019 Digital Credit Marketing: 2019 Trends & Best Practices

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Application Channel *Q3 2016 *Q3 2017 *Q3 2018
Mail 9% 7% 7%
Digital 66% 70% 72%
Online on Website 31% 31% 30%
Online on Tablet 11% 11% 11%
Mobile 25% 28% 31%
Mobile Website 12% 16% 19%
Mobile App 7% 8% 9%
QR/AR/Mobile Code 5% 4% 3%
Phone 9% 8% 7%
In-Person 16% 15% 14%
All paths – increasingly – lead to mobile
How Submitted New Card Application
42%
Q. How did you or
another member of
your household
submit the application
for the [Card]?
*Survey responses represent
12 months ending at the
listed date.
February 5, 2019 Digital Credit Marketing: 2019 Trends & Best Practices

21. © Experian21
Facebook facilitates a mobile first strategy
February 5, 2019 Digital Credit Marketing: 2019 Trends & Best Practices

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New approaches to marketing
1
Focus on developing an omnichannel experience
aligned with consumer media consumption or risk
becoming irrelevant
2
Seek new ways to leverage digital and direct
marketing as a powerful combination and to
gain an advantage
3
Experiment with new channels but make sure
the campaigns are transparent and relevant
for consumers

23. The Growing Importance of Affiliates

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Desktop & Mobile
Display + Social
The big digital spenders…spend mostly on Desktop Display ads
Source: Pathmatics 10/1/18-12/31/18
Q4 Digital Spend*:
$12M Lending Tree
(inc. comparecards.com)
$6.5M Nerdwallet $5.8M NextAdvisor
(owned by bankrate.com)
Desktop Display
& Video + Social
Desktop & Mobile
Display

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2018 product launches/upgrades promoted on TPG
February 5, 2019 Digital Credit Marketing: 2019 Trends & Best Practices
Source: Pathmatics 1/1/18-12/31/18

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TPG awards
February 5, 2019 Digital Credit Marketing: 2019 Trends & Best Practices

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*Q3 2017 *Q3 2018
3rd Party Total 3rd Party Total
Amex 17% 24% 14% 19%
BoA 15% 23% 11% 19%
Capital One 19% 11% 24% 15%
Chase 14% 9% 13% 10%
Citibank 7% 7% 7% 6%
Discover 5% 3% 7% 5%
Capital One is winning among 3rd party site applications
Issuer Share of Applications 3rd Party Websites vs. Total
Q. Which of the
following best
describes how you
obtained the offer
for the [Card]?
*Survey responses represent
12 months ending at the
listed date.
February 5, 2019 Digital Credit Marketing: 2019 Trends & Best Practices

28. © Experian28
The growing importance of Affiliates
1 Find ways to offer consumers the
guidance/advice/tools that they need
2
Work with affiliates proactively and build them in
to the marketing strategy, assessing new
opportunities as they arise
3
Consider how to leverage affiliates for new product
launches/upgrades to existing products
February 5, 2019 Digital Credit Marketing: 2019 Trends & Best Practices

29. The Evolution of Influencer Marketing

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Influencers are used increasingly for product launches
"Our team received a BIG surprise today when singer-songwriter
@bretteldredge stopped by the office to celebrate the launch of our
new @SouthwestAir Rapid Rewards Priority Card! […]
#SouthwestPriorityCard #BrettEldredge"
Facebook Instagram Twitter
Amex Cash Magnet
Southwest Rapid Rewards Priority Card
February 5, 2019 Digital Credit Marketing: 2019 Trends & Best Practices

31. © Experian31
Amex’s influencer strategy for the Everyday card reflects
its target audience
February 5, 2019 Digital Credit Marketing: 2019 Trends & Best Practices
Licensed therapist, career
coach and mom
@chrissyjpowers- 70k Instagram
followers:"... We decided to open
an #AmexEveryDay Credit Card
earlier this year so that as our
everyday expenses add up, so
can the points!...
#AmexAmbassador”
Home and lifestyle blogger
@christinajwarren- 30k Instagram
followers: "... We love using our
#AmexEveryDay Credit Card...Did
you know you get 20% more
points after making 20 purchases
per billing cycle?"
Motherhood and lifestyle
blogger
@lynzyandco- 197k Instagram
followers: "... We recently did an
overhaul with our finances and
made some decisions in regard to
the credit card we use for every
day purchases...
#AmexAmbassador”

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Pinterest hits 250 million users milestone
Chase Dream Boards
is the first-of-its-kind
experience that marries
design inspiration with
practical financial
guidance.
- Chase Home Lending
February 5, 2019 Digital Credit Marketing: 2019 Trends & Best Practices

33. © Experian33
The evolution of Influencer Marketing
Brand alignment with influencers must be relevant,
credible and authentic
Leverage a mix of macro influencers (for broader reach)
and micro influencers (for deeper engagement)
Utilize Instagram as the primary channel for influencer
marketing but don’t ignore other channels
February 5, 2019 Digital Credit Marketing: 2019 Trends & Best Practices

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Prioritize the mobile experience
Where to start and what to prioritize
1
2
3
Focus on your customer journey
Invest in all areas of the funnel
(awareness, consideration and
conversion)
Test new channels to see what works
4
February 5, 2019 Digital Credit Marketing: 2019 Trends & Best Practices

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Experian Best Practices
& Use Cases

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Goals for today’s webinar
February 5, 2019 Digital Credit Marketing: 2019 Trends & Best Practices
1
2
3
Share best practices and use cases
that work for our clients today
Provide compelling examples of what
digital experiences are possible
Reinforce why experimentation is critical
to ensure your success with digital
To be innovative you have
to experiment.
If you want to have more
invention you need to do
more experiments per
week, per month, per
year, per decade.
It’s that simple.
- Amazon’s Jeff Bezos

37. © Experian37
Add digital touchpoints to traditional prescreen campaigns
to increase ROI
Deploy
direct mail
7-10 days
2
3
Increase the ROI on your batch prescreen by
re-presenting firm offers of credit via email or
digital display ads
7-10 days 7-10 days
1
February 5, 2019 Digital Credit Marketing: 2019 Trends & Best Practices
Email marketing basics
Compelling creative
An offer that resonates
Seamless application process
Maintain regulatory compliance
Must optimize across all
dimensions for success
A large lender has seen consistent lift of 7% for campaigns combining
direct-mail and email firm offers versus direct-mail only campaigns

38. © Experian38
Design consumer-first digital credit experiences
Congratulations Tom!
You are pre-approved
for a $5,000 Elite
Credit Card.
Learn more
Instant Prescreen
• Lender initiates, no data entry
• Soft inquiry, no impact until application
• Firm offer required, ideal for cross-sell
“Checking your rate won’t impact your credit score.”
Learn more
Prequalification
• Consumer initiates; must provide written instructions
• Soft inquiry, no impact to credit to check rate
• No firm offer required; encourages shopping
 Name
 Date of Birth
 Address
 Written instructions
from consumer

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Leverage Mobile Credit Solutions to bridge the gap
between the physical and digital worlds
Text “New Card”
to 12345
Engage consumers
at high-traffic locations
Text-for-CreditTM
Welcome!
Hi John Smith.
Congratulations! You
are prequalified for a
credit card of up to
$2,800 with a 12% APR
Identify and prequalify
consumers based on SMS
Apply Now
Email my Offer
Prequalification
FraudNet
John
Credit Card Application
First name
Last name
Address
Phone #
Employer*
Income*
*Required fields
Smith
123 Main Street
271-828-1828
Prepopulate key fields and
capture new info
Instant Form Fill
Decisioning as a ServiceSM
0000 0000 0000 0000
EXP 07/22. CVV 369
$2,800
CARD BALANCE
Congratulations!
Issue virtual credit cards or
fund loans instantly
Use this virtual card until your official
credit card arrives in the mail in 3-5
business days.
Instant Issuance

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Build target audiences
and generate lists
Campaign Building
(Pre-Awareness)
Campaign
Deployment
(Awareness)
Consumer
Engagement
Conversion
(Consumer Acquisition)
Loyalty & Cross Sell
Create, deliver and
manage campaigns
• Digital Campaign
Deployment
Instant credit
decisions
• CreditMatchTM
• Mobile Credit Solutions
Retain and cross-sell
valued customers
• Account Management
• Digital Collection Solutions
Process applications
efficiently
• Decisioning as a
ServiceSM
• Instant Form Fill
• Customer Targeting Data
• Consulting Services
Experian has solutions that help clients along the
digital credit marketing journey
February 5, 2019 Digital Credit Marketing: 2019 Trends & Best Practices

41. © Experian41 2/5/2019 Unbenched: How Alternative Data is Changing the Game for FinTechs and Other Financial Institutions
Questions?

42. © Experian42
Thank you.