What advertising strategies do online lending companies use?

​

Lending institutions face a specific situation. On the one hand, they have to convince customers that their services are worth taking advantage of, and on the other hand they have to ensure full reliability, which in the case of companies borrowing money is easy to lose. That is why their marketing activities are interesting and worth analysing.

Credibility is the key to the online loan industry

People want to borrow only from proven and safe sources, borrowing money is a controversial subject and any misconduct on the part of lenders is often publicised in the media.

The situation is not made any easier by the fact that Poles often do not see the difference between loan institutions and parabancans, which works to the disadvantage of the former. While loan companies rarely take controversial actions, the activities of parabanks such as Amber Gold often raise legitimate objections.

In addition, nowadays, due to the RODO, for example, the topic of data protection is high-profile, and every loan company can easily be accused of improper processing of personal data, which is usually not reflected in reality.

For these reasons, loan companies in their marketing communications often place emphasis on the fact that borrowing money from them is fully secure, also in terms of proper processing of personal data.

Free loans - a marketing ploy or a great offer

Making you aware that a lender's brand is credible is the basis. In this market, however, it is still necessary to convince customers that the loan offer is not only safe, but also attractive in many respects, including in terms of interest rates.

An interesting proposal, which is now even a standard, is to offer completely free loans, that is to say loans whose amount is equal to the amount of the repayment. Such attractive offers are not available in any bank, and many people wonder what is the interest of loan companies in preparing such offers.

Offering free loans is associated with costs such as freezing cash for the duration of the loan, customer service costs, etc., and does not bring any profits. It is worth remembering, however, that the offer of free loans has certain limitations, first of all, it is usually valid only for the first loan, you can borrow relatively small amounts, and the obligation must be repaid in a relatively short time. At the same time, loan companies hope that the customer satisfied with the first loan will return to them in order to take out another, already interest-bearing loan.

In a way, free loans are a marketing procedure aimed at convincing customers to use their services. From a customer perspective, however, such free loans can be seen as a great deal of business and their skillful use can be very profitable.

What else do loan companies put emphasis on in communication?

Lending institutions and banks have a similar purpose, i.e. borrowing money, but they function on completely different principles, which can be seen in advertisements. Banks, in principle, want to be seen as institutions of public trust, but many people also associate banks with excessive bureaucracy and excessive procedures.

Online loan companies are service companies like practically all other companies, e.g. those belonging to the telecommunications industry. Advertisements of loan companies do not differ, therefore, especially about those presented by mobile network operators, and marketing professionals of loan companies have a lot of room to show off, because loan offers such as credit without certificates over the Internet have many advantages that can be emphasized in marketing communications. In advertisements for loan offers often so you can hear about the fact that they are fast, simple and free of unnecessary formalities. What is very important is that the advertising message is in line with reality, because nowadays the use of the offers of loan companies is often very attractive.