NetBanker 2.0

Wells Fargo blog is off to a good start

After a slow start, with no new entries during its first week, the student loan blog from Wells Fargo is off and running. Since its Sep. 5 launch, the site has averaged about two posts per week, each running 300 to 400 words, a good length. (See inset for jump page to the bank's two blogs, <blogs.wellsfargo.com>)

Furthermore, the writing is surprisingly good, with little corporate-speak, a trap that's so easy to fall into when every word has to be approved by a team of attorneys and compliance officers. Interestingly, the one off-topic post, written by the freelancing college-student mom, Caroline Hansen, was pulled from the site a day or two after it was posted. Either her step-daughter, or more likely, Wells Fargo management didn't like the story about her new tattoo.

The site is obviously aimed at parents, with warnings about credit card abuse and an instructive post about transferring money online to pay for a $573 book tab (ouch!).

While the bank does a good job of not blatantly pitching its products, it seems that most links within the posts lead to a wellsfargo.com page. The blog would have more credibility, and readership, if it linked to more outside resources.

Wells Fargo launches a new blog, The Student LoanDown

Wells Fargo launched its second blog today, The Student LoanDown  <blog.wellsfargo.com/ StudentLoanDown>. The site, which is not yet mentioned on the main Wells Fargo site, is designed to offer guidance on the student loan process (click on inset for closeup).

The first post claims they won't try to sell anything. It's a claim not technically accurate since there are several links to the corporate lending site, and a position that's not really necessary. As long as you are upfront about the corporate affiliation, it's OK to highlight your own products and services PROVIDED it's done in a way that is both interesting and useful.

The website is powered by Six Apart's Moveable Type and launched with just a single post from two of its four listed authors. Wells Fargo joined the so-called blogosphere back in March when it launched an odd site called Guided by History, a look back at the 1906 San Francisco earthquake and what we can do today to be better prepared for natural disasters.

While that site is pure community service, The Student LoanDown hopes to educate students and parents while driving more business to its student loan unit. Live less than 24 hours, it's too early to give it a full grade, but here are our first impressions.

Pros:

• A bank that blogs, and one that will provide good PR, regardless of whether students like it
• Even if it looks a bit hokey, you can tell the bank put an effort into the design, unlike Bank of Internet (see FMW Aug. 31)
• A good cross-section of authors, one from marketing, one who's a May college graduate, one communications consultant, and a bank-sponsored, literacy-program manager (where are the guys though?)
• Full bios and pictures of the authors
• Comments are open (but moderated of course), which is a good feature provided the function is used. The bank will probably have to do some subtle encouragement, perhaps with employees, to get some Q&A started

Cons:

• There are only two postings, neither of which offered anything useful or interesting; try to launch with something interesting, even if it's a blatantly commercial sweepstakes
• The design is a bit hokey; Trey Reeme over at OpenSourceCU called it, "a little on the MySpace side with a WF feel" (hint: that is not meant as a compliment)
• The content needs more pizazz

--JB

MyRichUncle discounts student loans

If you are looking to boost student-loan volume, you had better postpone that summer vacation. The upcoming July 1st interest-rate boost has created much FUD (fear, uncertainty, and doubt) for borrowers. The reason: existing borrowers have the opportunity to lock in the current rate of 5.3% on Stafford loans or 6.1% on PLUS if they consolidate their loans and refinance prior to July 1. After that, most lenders will raise rates on these loans by almost 2% to the new rate caps of 7.14% and 7.94% respectively.

Unless you already have resources in place, it's probably too late to participate in the student loan refi boom. However, a high level of activity will continue through July and August as students and their parents look for money to cover that big tuition bill in September.

With the vast majority of college-bound teenagers using search engines, online marketing is a powerful way to find prospects. However, you won't be alone. A Google search today for "student loan" had 87 advertisers bidding on the term (see screenshot above). So it's going to take more than a simple ad buy to break out from the online crowd.

The top 10 advertisers on Google today for "student loan" (11 am PDT search from Seattle ISP):

1. NextStudent.com (across top)
2. loantolearn.com (across top)
3. AstriveStudentLoans.com (across top)
4. National City (right)
5. CollegeLoanSite.com (right)
6. GMAC Bank Funding (right)
7. ScholarPoint.com (right)
8. MyRichUncle (right)
9. Key Bank Education (right)
10. EducationFinancePartners.com (right)

MyRichUncle
If you look through these top advertisers, you'll see a number of innovative techniques for capturing loan applications or leads. One of the big innovators, advertiser #7, MyRichUncle (see screenshot right), has recently earned positive PR by announcing that it will continue to price its Stafford and Plus loans 1% to 1.75% BELOW the new July 1 maximum rates. The company even earned a nice Jane Kim sidebar in today's Wall Street Journal.

Aside from its pricing and memorable name, MyRichUncle also does a good job of succinctly summarizing the available options and steering borrowers into the correct program. It even offers a Preprime loan option for students without credit histories or co-borrowers.

--JB