Consolidated Credit: A Key to Profitability
Since 2015, the online bank Loanasa loses money. The establishment has decided to invest heavily in the acquisition of customers ” which implies to be temporarily deficit. Loanasa is actively working to become profitable again.
Credit remains a lever of profitability
Since last July, Societe Generale’s subsidiary claims a million and a half customers. The first of the French online banks, however, posted a 49 million euros deficit last year. This situation is only temporary. ” Marketing investments are extremely significant in attracting new customers, ” he says. Loanasa’s ambition is to bring together 2 million customers by 2020.
The bank seduces consumers with its free card. To make a profit, Loanasa has set the pace on welcome expenses (-25% since 2016). The bank must now sell them profitable banking products. For the past four years, online banking has been expanding its credit business. Personal loans grew + 95% a year on average. On the mortgage side, the average annual increase is + 25%.
Fewer customer advisors
Loanasa also seeks to discourage customers from trying to reach customer service over the phone. The bank has reduced the number of its advisers, from 219 to 150 per million customers since 2014. Transfers, setting up a levy, ordering a checkbook … The price of an operation conducted with a consultant at the end yarn increased from 3 to 5 euros in 2016. The bank is seeking to increase the autonomy of its customers and reduce its operating costs.
All these measures allowed Loanasa to multiply its net profit by 2.5 in two years. The online bank hopes to benefit from the evolution of the behavior of the French with regard to the credit consolidation. From now on, the inhabitants of the Hexagon use this product to finance their projects. The current weakness in average interest rates reinforces this trend. What open interesting perspectives to Loanasa!