Delinquency rates could get worse. Here’s a win-win solution
Delinquency rates could get worse. Here’s a win-win solution
Credit card delinquency rates have climbed to 3.2%, their highest level in over a decade. As millions of Americans navigate new cuts to essential programs, those numbers could soon rise even higher.
These delinquencies aren’t just bad for consumers — they’re a serious pain point for financial institutions.
Have you considered how your organization will manage this challenging landscape amid rising delinquencies?
It’s possible to avoid the internal panic and executive-level pressure to act that comes with these noticeable spikes in delinquencies with SpringFour.
SpringFour reduces delinquencies by empowering organizations to deliver vetted financial health resources that their customers can access for free to lower household expenses and improve their financial situation.
With SpringFour, organizations:
☑️ Build customer loyalty
☑️ Improve portfolio performance
☑️ Drive increased repayment rates
How SpringFour Helps Prevent Delinquency
Using SpringFour at key moments in the customer journey increases customer engagement, drives repayments, and delivers measurable ROI. There are many ways you can use SpringFour to drive positive outcomes and reduce delinquencies for your customers and your business.
Timely Help, Tangible Impact: Seasonal Campaigns That Deliver
Whether it’s time to pay taxes in the spring, utility costs are rising in the summer and winter, or student loans are re-circulating at the beginning of the school year, your customers need help navigating their current financial challenges. SpringFour helps you adjust your messaging seasonally based on your customers’ most pressing challenges to demonstrate that you understand their needs and will support them with actionable, trusted resources to get back on track with payments.
Partnering with SpringFour allows us to directly address our customers’ needs in a way that we could not do alone.
For Life’s Toughest Moments: Help Customers Navigate Hardship with Actionable Financial Health Resources
Timely access to relevant financial resources during hardships can prevent delinquencies and improve outcomes for both the customer and organization. Connecting customers with trusted financial health resources conveys empathy and provides immediate, actionable support. Providing actionable solutions to financial challenges sets customers up for success in making payments in the future.
I deal with foreclosure clients, so having the HAF resources from SpringFour was very helpful and saved my clients anywhere from $20K-80K and some even received second round options for further assistance. Some clients received a reduction in their mortgage payment which put money back into their monthly budget for other expenses or savings.
From Advice to Outcome: Financial Health Resources That Go Beyond Education
Offering financial health resources alongside educational content turns learning into behavior change. It improves customers’ ability to make payments, reducing delinquencies and strengthening your role as a long-term financial partner. Plus, SpringFour’s expertly-authored Financial Health Resource Guides are embedded in search results and provide money-saving tips and information on a variety of financial health topics, such as accessing food assistance, saving money on home repair, expanding job opportunities, and more.
While Self can help customers with some aspects of their credit building journey, we can’t help with everything. To date, we’ve passed 3 million referrals to SpringFour’s resources through our marketplace. And it’s things that our customers need: food insecurity, information on utilities, information on apartments and how to get affordable rentals. It’s been a great way to round out Self’s products in other ways to get them what they need.
Drive Real Change: Build Stronger Communities with Trusted Financial Health Resources
When connected to local nonprofit and government resources, community members can free up money to cover payments and reduce the chance of falling behind. Proactively offering resources at community touchpoints helps customers stabilize finances before delinquencies escalate. Prevent delinquency by meeting customers where they are — in the community — and equipping them with the resources they need to stay financially stable, while also reinforcing regulatory, financial, and reputational goals.
We believe that financial empowerment is an important first step in helping to transform lives and communities… This is part of our commitment to build strong communities and to keep customers at the center of everything we do.
Help That Prevents Hardship: Keep Customers on Track with Proactive Financial Health Resources
Reaching out before delinquency with meaningful support helps customers avoid falling behind. It enhances customer retention, improves repayment, and reflects a proactive, customer-first approach. Addressing root causes for why customers are struggling to make payments — by connecting customers with vetted financial health resources — better positions them to keep up with their payments, improves trust and engagement, and strengthens loyalty and customer relationships.
SpringFour saved me hundreds of dollars and put me in contact with organizations that helped me in a bind.
Start driving impact for your customers, employees –– and your bottom line. Email us at impact@springfour.com.
TESTIMONIAL
“SpringFour offers one set solution that’s a no-brainer… And if we’re genuinely interested in helping [our customers] make that financial progress, what I call real financial progress, we have to think outside the box. We have to look for new solutions. We have to think ‘What else is out there that we can use to help our clients?’ But it has to start with a mindset that has to change where we’re not in the business of collecting money, we’re in the business of offering solutions.”
– Anuj Vohra, Head of North America Collections, BMO
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