The LoanPro/Visa DPS integration offers unique credit customization opportunities

LoanPro integration of the credit platform with DPS visa’ Digital-first processing helps brands address reduced debit interchange fees while providing unique personalization opportunities. This move comes at an ideal time for banks, fintechs and other brands to enter the credit market.

Interchange fees are plummeting as government agencies impose significant limits. For many this is a strike against a substantial revenue stream. The LoanPro/Visa DPS integration allows them to migrate customer transaction activity to more profitable credit opportunities through personalized and responsive offers.

How integration drives unique personalization for brands of all sizes

Marketing Director at LoanPro Colton Pond said the move unlocks Visa DPS so brands can offer debit and credit in one end-to-end platform. Personalization opportunities abound as they leverage LoanPro’s transaction-level credit to access SKU-level data to create branded cards designed to target critical categories, spending speed, or even geolocation. Transaction-level credit allows brands to offer interest rates, credit limits and grace periods customized based on amount, location, merchant type or other criteria.

One program reduces rates for military families with an active duty member. Special rates apply to eligible purchases within five miles of home. Companies can attract customers by introducing new product lines with lower interest rates. Sports teams can offer branded cards with discounts on game-day purchases near the stadium or as fans follow them on the street. This allows businesses of all sizes to create imaginative campaigns previously limited to an exclusive club. rewards,” Pond explained. “It’s hard to distinguish because the people with the biggest marketing budget always win.” get a partnership with Delta, which not everyone can do.” But now they can, and quickly. Launching new products from legacy platforms took up to 18 months. There was a need to outsource more services to more companies that struggle with technology stack integrations.

LoanPro and Visa continue to evolve as the environment changes

With LoanPro, time to market is reduced to a few weeks. Access to Visa services, such as fraud detection, offers additional benefits. Visa sees this as a step forward in its strategy to move beyond payments. When combined with moves like the recent ones acquisition of Pismo, Visa is positioned to own more customer relationships and increase share of wallet. The company can compete directly with TSYS, i2c and Fiserv CCM. For LoanPro, it marks the latest development for a 15-year-old company designed to improve the cumbersome lending processes its founders experienced when providing auto loans. Today, more than 600 financial services companies use LoanPro. Its technology comprised of 11 patents holistically improves the borrower, agent and back-office experience. Its client list includes Chime, Intuit QuickBooks, SoFi, Marlette Funding and Whole Foods. As more and more companies offer financial services, financial services must provide more of them if they hope to maintain customer firstness. But it’s worth it. Pond said a partner bank launched a differentiated credit program that increased deposit balances by 30%. “You can find ways to differentiate debit and credit because there are many more components you can use to acquire customers less expensively,” Pond concluded. “That, in turn, drives deposit growth because deposits are shrinking.”

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• Tony is a long-time contributor in the fintech and alt-fi spaces. Twice named journalist of the year at LendIt e winner in 2018, Tony has written more than 2,000 original articles on blockchain, peer-to-peer lending, crowdfunding, and emerging technologies over the past seven years. He has hosted panels at LendIt, the CfPA Summit, and DECENT’s Unchained, a blockchain expo in Hong Kong. Email Tony here.

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