SNC Spotlight

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How State National's Unique Service Model Offers More Benefits to You

The Difference Is in the Details: State National’s Dedicated & Proactive Relationship Service Model

 

There is no question that at State National we offer more than just a solution to protect your portfolio — we strive to build lasting, long-term relationships based on trust, transparency, and dedicated service. Here are just a few of the reasons why we are able to deliver more for our partners.

Dedicated Teams, Dedicated Service

Delivering an effective program from day one is what builds the strong foundation of partnership. Service is at the core of everything State National does, and one of the ways we reiterate this core value is by separating our sales and service staff into separate teams. Why is this important? We have found that it is the best way to guarantee best-in-class service before, during, and long after implementation. Through this one-of-a-kind industry model, both sales and service can complement each other’s skills to act in the best interests of our partners.

COMMITMENT, AGREEMENT, INTEGRITY, SUPPORT and TRUSTA Better Build Based on Collaboration

Understanding the sales process and carrying out a seamless implementation strategy is paramount in starting your program off on the right foot. As with other providers, you work with the sales team during the selection process. We rigorously train our sales staff to understand your needs and ensure you’re choosing a product that best suits your specific situation.

Unlike other providers in our industry, however, before implementation you’ll be assigned a dedicated State National service team that specializes in seamless integration of your program into your business. They know every in-and-out of the implementation process, and work tirelessly to understand each client’s particular needs and assist in providing a custom solution.

Your Client Executive and Account Team

State National is the only provider with dedicated Client Executives who work only on portfolio tracking and protection. As the highly trained and experienced implementation team works to get your program up and running seamlessly, you’ll also work closely with your Client Executive as they get to know you and your organization’s unique needs.

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After implementation is complete, your Client Executive will offer continuous monitoring, personalized support, and consistent stewardship of your program. Their job and sole focus is to ensure you are fully satisfied and that your program is delivering results based on your objectives.

Your Client Executive is backed up by a dedicated Account Team assigned to your program. You never have to worry about emails that take days to return or questions that go unanswered — your Account Team is knowledgeable about the details of your specific program and is always available to assist with monitoring, tracking, and support.

This kind of dedicated and committed support provides a better experience for you and your staff — which ultimately translates into a better experience for your borrowers. (How? Stay tuned to this blog for a future update on why this is so!)

Transparency, Transparency, Transparency

One of the ways we measure our performance and success as a company is by the quality of the relationships our Client Executives have with the credit unions, banks, and finance companies they serve. For example, in addition to regular program updates, each year every client receives a personalized and personally delivered Annual Impact Report (AIR). This detailed executive review shows your institution exactly what the value of your State National program is to your organization. It includes intricate details, benchmarks, and recommendations. Clients can see the fluctuations and movements between loan volume, premium production, claims, and much more.

We believe that the information we have, you should also have, and that you should never be in the dark about how your program is performing. We can’t say it enough: Transparency and trust are key to building lasting, mutually beneficial relationships.

“Always Inspect What You Expect”

We conduct multiple client surveys on different aspects of service delivery:

  • During implementation
  • Post-implementation
  • Ongoing contact center KPIs
  • Borrower experience
  • Annual overall satisfaction

Collecting these metrics helps us to test the success of program implementation, maintenance, and performance. We want to make sure we are consistently improving and living up to the high standards we have set for ourselves. You cannot deliver consistent superior results year after year and decade after decade if you're skimping in any of these areas.

“Always inspect what you expect,” as the saying goes, and we live by it. Our focus as your partner is to be an extension of your organization, and we cannot do that if we are not aligned, which is why we invest significantly in measuring what you want and need and how we can continually improve to deliver that and more.

Portfolio Protection Is Our Singular Obsession

 

State National was one of the pioneers of collateral protection insurance and we’ve been the experts on it for nearly 50 years. Our focus is always to provide the absolute best in portfolio protection and is never diverted by trying to persuade you to add additional products or services. It’s not that these ancillary products are not available, it’s that CPI is a risk mitigation product, and shouldn’t be viewed a fee or revenue generating product. It’s about mitigating risk from lending and reducing charge-offs to protect net income.

When services are bundled together, it can be easy to play a shell game among products, seemingly offsetting the costs of one element by shifting it to another. State National’s goal is always to ensure that your CPI program is successful and cost-effective on its own merits and is delivering consistent loss ratios and dependable long-term value to your organization.

We Are the Insurer (and Yes, That Matters a Lot)

Because State National is not just the tracking and insurance provider but also the insurance company, we can offer a level of underwriting flexibility and customization unmatched by anyone else in the industry. We look at each of our business partners individually, and base program details and pricing specifically for each institution. When performance is pooled in a CPI program, some lenders have to subsidize the results of non-performers, and that is not an effective way to build relationships for the long haul.

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We Learn With Our Partners to Help Us All Grow

With service as a core value, State National not only puts maximum effort into providing the best portfolio protection anywhere, we also actively look for ways to help move the industry needle and be a part of a larger mission. This includes actively seeking to expose our clients to opportunities with leading organizations that explore innovative, forward-thinking ideas. Our partnerships with thought leaders such as Filene Research Institute (including being part of Filene's "Inner Circle" by sponsoring Filene’s Center of Excellence for Emerging Technologies and Center of Excellence for Innovation & Incubation), CUES, and others are added resources that can provide support to our clients and the industry overall.

And we don’t just stop at data introduction and access. The State National Client Advisory Council (CAC) provides a forum for credit union and other financial executives, along with leaders from State National, to collaborate, share ideas on important industry topics, and conduct real-world problem solving for current challenges. We want these leaders to engage with us and one another while we all search for viable industry solutions and opportunities. Our CAC members meet quarterly and work to develop and produce solutions that are then made available to our council members and to our other clients across the country.

The Proof Is in the Results

Best in ClassWe are always looking for ways to invest in and maximize the use of resources for our partners. State National has a corporate culture of unparalleled service and commitment, and that’s not just something we say — we see proof of this in our stellar Net Promoter Score (NPS), which has consistently scored at more than double the industry average and is higher than some of the best-known service companies out there, such as USAA, Apple, and American Express.

View Our Latest NPS Score!

Is this the kind of service and dedication your organization is looking for from your portfolio protection provider? We look forward to starting a conversation with you and answering why you and your organization should be partnering with State National.

Stay tuned to our blog for a future update about how your provider’s service delivery model and expectations can have a big impact on your borrowers’ experience.

 

Jeremy Clark
Jeremy Clark
State National Sr. Director of Client Service Jeremy Clark leads State National's Client Executive Group to facilitate client support, satisfaction, and retention.

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Amazing Things Happen When Female Executives Get Together

State National's Retreat Where Female Finance Executives Go to Network and Learn A 2021 report from CUNA indicated that 51% of CEOs at credit unions and 33% of credit union board members are female. Many organizations speak at length about the value of empowering and providing opportunities to women — yet this recognition must be met with action. For example, Kim Sponem, CEO of Summit Credit Union, took action by starting The Red Shoes initiative. Filene Research Institute actively creates research reports about women in credit union leadership. These are just two of many examples across the credit union industry. Missions like these are an important part of transforming the narrative of women and finance. State National Companies also recognizes the unique leadership traits and skillsets that female leaders bring to the financial services industry. To celebrate those traits and provide women leaders from across the country the opportunity to build relationships with their peers, we created our own initiative — an annual event called the Female Executive Networking (FEN) Retreat.   Why a Retreat Specifically for Female Executives? The goal of this annual retreat is multifold: Provide valuable, meaningful, and actionable education, information, and resources to senior credit unions and financial institutions executives that they can use to move their organizations forward. Create a forum for financial institution leaders from across the country to share best practices regarding leadership, retention, business growth, and operational excellence. Provide a rich and rewarding experience that organically allows connections and relationships to grow. Empower and inspire attendees to return to their financial institutions re-energized, with new ideas for accelerating the growth of their organizations. With these goals in mind, we launched our first FEN retreat in early 2020. And, oh, how critical it was for the female leaders who participated in this first event to achieve these goals — because at the time we didn’t realize were heading home to nearly two years of quarantine and isolation! A Most Welcome Return In 2021, after waiting 18 months from our launch date, we were more than eager to resume some sense of normalcy and held our second FEN Retreat. That year’s event featured Terri Trespicio, speaker, coach, and best-selling author of Unfollow Your Passion, as our keynote speaker and workshop leader. This year, our 2022 keynote workshop, titled How Macroeconomic Conditions Will Affect Your Financial Institution, Your Customers, and Your Household, was led by Marlena Lee, Ph.D., Global Head of Investment Solutions at Dimensional Fund Advisors, and Mary Ellen Krueger, Director, Wealth Management and Partner at Aspiriant. Not only are these FEN retreats educational, inspirational, and just plain fun, we at State National are also proud of being a part of the movement to empower even more women to lead in moving the credit union mission forward. After all, studies show that more female executives in a C-suite role can improve both customer orientation and financial performance. That’s a win-win-win — for credit unions, for their members, and for women in financial leadership. If you are interested in learning more about State National’s Female Executive Networking retreat, please contact your State National Client Executive or Regional Vice President.   Comments from FEN attendees:

With Custom QR Codes, It’s Now Even Easier for Your Borrowers to Upload Their Insurance!

State National brings back QR codes — now new and improved!   When was the last time you scanned a Quick Response (QR) code? Was it on a restaurant menu, on a real-estate sign, or maybe to access a form? The reliable QR code has now become a part of our daily life. In our mobile-first technology era, QR codes are back, giving consumers instant access anywhere to the targeted information you want to provide them. There is no need to keep pamphlets in stock or worry about your customers going to the wrong website when scrolling past noisy ads on search engines. While State National has offered our clients the ability to have QR codes on their borrower notices before, there was not a real demand for them until the recent increase in use sparked by the pandemic. With increased consumer receptiveness to these abstract squares and State National’s dedication to constant improvement, we are harnessing the power of QR codes again — adding on improved customizations that make it even easier for borrowers to submit their insurance when they take out a new loan or have a lapse in coverage. "We appreciate having a good vendor partner that understands your needs sometimes before you even know you have a need. State National is always looking for ways to make things better for your staff as well as your leadership.” – JAX Federal Credit Union QR Codes for Borrower Notices Borrowers can scan their personalized QR code on their mailed paper notice and be directed straight to their personal account on MyLoanInsurance.com. On this borrower-friendly site they can view their insurance status and easily provide updated proof of insurance. Since the QR code on each borrower’s notice is specific to them, no reference ID or PIN is needed, and the webpage will automatically populate with their name and vehicle type. A helpful short video applicable to their particular situation will instruct them on exactly what they need to provide to resolve their specific impairment. And finally, the site will also show them how to easily upload and submit their information. Our borrower-specific QR codes personalize the website borrowers are directed to, including details such as informing them if the lien holder is missing or if their deductible is too high.   QR Codes for Lenders Lender custom QR codes are another way we provide total access and empower your borrowers to easily update their insurance with us before they even enter our notice cycle. These institution-specific lender QR codes can be used anywhere you choose, including your website, lender agreement, and loan closing documents. Borrowers who scan your custom lender code are directed to a MyLoanInsurance.com page branded with your financial institution’s name and logo. From here, borrowers can upload insurance even if they do not know their access PIN.   Pro Tip: Add Your Lender QR Code to Your Lender Agreement to Prompt New Borrowers to Submit Their Insurance We encourage you to add your custom QR code in your new loan packet and actively point it out to borrowers when they take out a vehicle or home loan. Let your borrowers know they can scan that QR code to quickly and easily provide their insurance details. The visual effect of having the QR code on the agreement packet reminds the borrower to take action, and as soon as the website pops up, it tells them exactly what they need to do to update their insurance. MyLoanInsurance.com is accessible 24/7, so borrowers with missing information or a lapse in coverage can update their insurance at any time, at their convenience.   Scan Here for an Example of a Lender QR Code Leading by Always Improving Since 1973, State National has been dedicated to a culture of continuous improvement. We are proud to be the technology leader in our industry, and are consistently evolving to make portfolio protection easier, faster, and more user-friendly for your borrowers and your staff. We are glad to provide our lenders with these customized QR codes as the latest feature to make the process even more seamless and convenient. Borrower QR codes are already actively employed on all mailed notifications. To find out more about getting your own customized lender QR code, contact your Client Executive today!

Tackling Inflation and the Auto Industry Part 2: Maintaining Your Competitive Edge

Inflation is squeezing businesses and consumers alike. Perhaps the easiest industry in which to spot the consequences of financial stress is the automotive industry. How can you maintain a competitive advantage while also protecting your portfolio in this market? Read on to find out.   Spotlight Soundbite: Maintaining Your Competitive Edge During Auto Industry Inflation   Consumers Are Facing Post-Pandemic Financial Stress The government’s stimulus checks have long run out, as have the grace periods many financial institutions implemented at the beginning of the pandemic. Many individuals have returned to work and are again bearing the costs of gas, transportation, childcare, and other employment-related expenses. With many Americans increasingly financially strapped, what does this mean for lenders? Unfortunately, prices are soaring and may continue to rise. We know that those directly impacted by inflation (which is all lower- to middle-class Americans) alter their consumption, investment choices, and spending habits as their purchasing power decreases. Something has to give as many consumers struggle to make ends meet. Unfortunately, many may choose to scale back on or even cancel their auto insurance as a result. In addition, consumer debt-to-income ratio is expected to increase. As borrowers take out large auto loans, particularly on used cars, they will be stuck with these loans even if the value of the item purchased decreases long-term — potentially putting borrowers upside down on their loans, with a vehicle worth considerably less than what they still owe in the future.   Revenue Lost in Charge-offs What does this mean for financial institutions? Unfortunately, this financial stress being felt by consumers also increases risk in a lender’s loan portfolio. As financial institutions are providing loans for vehicles with a hyper-inflated value, it’s likely they will see an increase in bad debt as those loans start to default to historic norms and possibly higher. Without proper risk mitigation measures in place, if the collateral sustains damage or loss when a borrower is uninsured or underinsured, the financial institution making the loan can also find itself “upside down,” so to speak, with the claims amount received insufficient to cover its exposure. Not all is lost, however — financial institutions with a high-quality portfolio protection insurance program will experience relief from a significant amount of this bad debt. Not only will this critical protection keep your borrowers covered, it will also safeguard your balance sheet.   Insurance Tracking Also Helps Lenders Manage Risk In addition to the protection provided by the insurance coverage, lenders can also use the detailed borrower insurance tracking in the program to assess and mitigate risk. High-quality, real-time tracking allows lenders to leverage knowledge of a borrower’s lack of coverage as an indicator of when a loan may be at a higher risk of default. This early warning sign provides an opportunity to initiate preventive steps to work with those borrowers to avoid collections, as well as take proactive measures to step up early collections efforts.   How a Program with State National Tackle Inflationary Hardships We can help as you are undergoing a double squeeze from tighter net interest margins. In addition to decreasing your charge-offs, here are a few of the relevant ways our program supports you no matter the storm. 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With CARS, we manage repossessed collateral and remarketing profitability at auctions for you while also maximizing settlements from outside insurance claims and recovering suspected skips. All of this combined with State National’s culture of continuous improvement for the past half century, unwavering commitment to investment in technology, and unsurpassed service delivery ensures we can best serve our partners in both good times and challenging times, and we can help your business weather any economic storm.   Practical Solutions for Mitigating Portfolio Risks State National's Client Advisory Council (CAC) recently discussed some practical steps their credit unions are taking for creating alternative revenue methods. Even in the face of rising inflation and decreased lending demand, there are still many ways credit unions can grow while serving their members well.     For more information on how our solutions can help your credit union, contact us! To read the first article in this SNC Spotlight series, Tackling Inflation and the Auto Industry, visit: Protecting Your Credit Union from Car Market Volatility