Fast, Flexible and Focused: Why Financial Institutions are Embracing Agile Marketing

Let’s talk about speed.

I don’t mean hair-on-fire, gotta-have-it-yesterday speed — though all marketing leaders certainly have found themselves in that situation (often trying to capitalize on a last minute goal or opportunity). I’m talking about the kind of speed that helps you avoid frenzied end-of-quarter sprints.

Let me explain. Unless you are a digital-first player with deep roots in e-commerce, you likely deploy direct marketing campaigns in large, months-long waves planned well in advance. Doing so certainly gives you, your leadership and your peers a sense of predictability and control — over budgets, strategy, and (if all goes well) outcomes.

The thing is, banks and credit unions that rely on a handful of large campaigns each year are in fact more likely to miss the mark. And even if they do hit their acquisition goals, they are likely facing rising costs and may miss out on opportunities to outperform. This is especially true in the current dynamic economic environment where changes meaningful to banking, such as interest rate changes, housing cost shifts and credit score moves, are themselves happening fast.

While shifting to shorter, faster campaigns may seem like increased work and complexity, marketing and data management technologies are readily available to enable quick-turnaround, highly-responsive campaigns. The benefits are many, from enhanced relevance and stronger customer connections to improved ROI. By shifting to a more agile marketing approach — by gaining speed — banks can respond faster to customer needs, capitalize on emerging trends, and ultimately drive greater engagement and growth. Following are some of the key reasons it may be worthwhile for your institution to think more nimbly.

Avoiding Score Drift

If your practice is heavily weighted toward pre-screen campaigns launched quarterly — or over even longer intervals — you have likely experienced credit score drift. Identifying qualified customers based on risk scores requires up-to-date data, but scores can shift rapidly. Consider that the credit ratings of deep-subprime consumers (CreditVision® New Account scores <500) can change rapidly, with 23% of the segment moving to a new score band in just two weeks, according to TransUnion internal data.

This volatility means your offers will go out to individuals who may have already moved out of the campaign’s criteria — before it even begins. Or, you may be missing out on reaching new prospects who have moved into your risk thresholds. As a result, campaigns risk missing qualified consumers until the next cycle, potentially months later, or offering mismatched interest rates. For example, a higher rate might be presented to someone whose score recently improved, undermining the competitiveness of the offer.

This is critical as 70% of borrowers prioritize competitive interest rates when considering a new credit product, second only to trusting the lender (76%), according to TransUnion’s 2024 Shopping for Credit Consumer Survey. In fact, when marketing to your existing customer base, a poorly targeted offer can frustrate a once-loyal customer, who will lose trust and will learn not to open your marketing emails and letters. Even worse, they may get a better, more relevant offer from a quicker competitor.

Surfing a Dynamic Rate Environment

The current dynamic interest rate environment — the new normal for a few years now, following nearly 15 years of stable low rates — offers a further incentive for bank and credit union marketers to step up the pace of their campaigns. Financial institutions that can quickly craft campaigns that reflect the current supply and demand can gain business by getting enticing offers into the hands of prospects ahead of their competition.

As rates fluctuate, consumer preferences for financial products evolve rapidly — mortgage refinancing, auto loans, and home equity lines of credit all respond to even small rate adjustments. Traditional, infrequent campaigns risk missing these windows of opportunity, leaving potential borrowers underserved and financial institutions at a disadvantage. By accelerating the pace of marketing efforts, banks and credit unions can more effectively match offers to current demand, ensuring they remain relevant, responsive, and well-positioned to capture market share in this ever-changing landscape.

As the U.S. Federal Reserve works through a rate cutting cycle and 30-year mortgage rates drop below 6%, TransUnion forecasts that mortgage and refinancing demand will rise. Likewise, demand for Home Equity Lines of Credit (HELOCs) is expected to shift higher. And lower auto loan rates will ease affordability concerns and drive more applications.

A TransUnion survey of 1,031 consumers conducted in October found that 23% plan to apply for an auto loan and 18% expect to seek a mortgage loan within the next year. As consumers’ confidence and — their intentions — shift along with interest rates, more frequent campaigns improve your chances of being in the right place at the right time with the right offer.

Testing, and Learning

The principle of "test and learn" is a fundamental tenet of marketing. And the simple act of launching smaller, more-frequent campaigns can bring your team closer to embodying that best practice. Allowing you to bring successful tests to market faster while also giving marketers the ability to work out a new strategy or market thesis across a series of adjustments rather than fully committing to it in advance.

A marketer may want to test into new audience segments, for example, they may believe there is opportunity to expand into a new credit risk segment, or they may wish to respond in the moment to upward trending home purchase activity in a specific market or the chance to respond to some other market or behavioral data. Likewise, interest-rate sensitive campaigns such as auto loan refinancing offers can benefit from a regular rhythm, in sync with rate movements, rather than trying to capture such activity with fewer, larger campaigns.

Improving Your ROI

Gartner data finds that 55% of campaigns fail to produce a return that justifies the investment. If your aim is to beat these odds, eliminating wasted spending is a great place to start. Getting campaigns right is especially important now because marketing budgets are expected to be tight for the year ahead. In 2024, marketing budgets fell to just 7.7% of revenues, down from 9.1% in 2023, according to Gartner, which says marketing executives expect similar or tighter budgets in the coming year. That makes it especially important that budgets are spent wisely on smaller, targeted campaigns more likely to produce positive ROI.

The bottom line: more frequent campaigns and nimble marketing tactics allow financial institutions to respond swiftly to changing market conditions, target customers with greater precision, and optimize marketing spend. By embracing this approach, financial institutions can strengthen customer relationships, seize emerging opportunities, and position themselves for sustained growth — and learning — in a dynamic environment.

So the next time you have a moment to slow down and think, consider this: In today’s environment, agile marketing may no longer be optional.