By Mary Wisniewski, American Banker
Later this month, a handful of lenders will lose a lead generator from Google, but could the lenders be part of the reason the service never took off?[…]
In September 2012, Filene, the think tank for credit unions, ran a test that featured 44 credit union credit card offers on Amazon.com in a similar way lenders featured credit cards on Google Compare. After consumers clicked on a product featured on Amazon, they got redirected to a lender’s website. But that’s where things got ugly. Lenders advertising their credit cards on the site could still require consumers to pinch and zoom their way through the process, or worse, send in physical paperwork if not come into the branch to finish the process.
“It was sort of a wake-up call,” she added.
The test uncovered other hurdles, too, said Rob Rubin, who worked on the Filene pilot and is a managing director at Novantas. Not all leads qualified for the credit product they clicked — a challenge any lender paying for leads on comparison sites could encounter. By the end of the 14-month pilot, Filene found less than two applications were approved on average for every 100 leads from Amazon’s credit card marketplace.