As banks and credit unions get the hang of using social media to connect with their customers, or potential customers, one software company has created the first mortgage calculator application for Facebook to help credit unions reach more people and originate more loans.
The "Mortgage Calcubot" app, which is only for credit unions currently, is added to a credit union's Facebook page. The app lets users enter their home value, loan amount, length of term and the interest rate and calculates what the monthly payment would be. Once calculated, users can click either "save" or "apply for a loan," which brings them to the credit union's website and loan application page.
The application is currently used by two credit unions, one of which, Kinecta Credit Union, said it received 21 loan applications in the first three months of usage, and funded eight of the loans. Application processing software can help credit unions keep up with the growing loans social media may be generating, especially since the startup announced this week the introduction of the "Auto Calcubot" for auto loans.
The move to social media
Loan calculators are not a new invention, and many banks and credit unions have a calculator on their websites. But, by bringing the calculator to social media, banks may be able to reach more consumers who wouldn't normally go to the website. By using social media pages, the time of day most people would apply for a loan also increases – such as the middle of the night, when potential customers are using social media sites.
The first credit union to use the app said it received more than 700 clicks so far, and 28 applications. While the increased interest is no doubt an advantage for credit unions,
risk management software can also help loan originators stay solvent as a wider variety of customers are reached through social media.