Coop Bank "Teacher Home Loan"

Situational Analysis

Teachers play a critically important role in society, yet their workload, level of responsibility and salary are often not in balance. This directly affects their ability to purchase a home, as income level can become a significant barrier when applying for a mortgage or finding suitable housing.

At the same time, concern for teachers’ wellbeing had been growing in Estonian society, culminating in a large scale education workers’ strike at the beginning of 2024. The situation of teachers does not affect only the education system, but has a direct or indirect impact on a large number of Estonian families.

In the mortgage market, banks typically offer preferential terms primarily for the purchase of A energy class homes, which are often out of reach for teachers. This created an opportunity for Coop Pank, as a domestic bank, to introduce a solution that helps address a socially significant issue and contribute to improving everyday life in Estonia.

A mortgage offering tailored to teachers allowed Coop Pank to strengthen its position as a socially responsible bank, reach a clearly defined target group and offer a product that stands out from competitors. Timing was also strategically important, as the communication was planned for the period just before the teachers’ strike, when the topic was at the centre of public attention.

Messaging and Communication Strategy

Core Messages:

• Coop Pank values teachers by offering the most favorable home loan conditions.
• While we cannot eliminate the disparity between teachers' responsibilities and salaries, we can assist them in establishing the homes they deserve.
• Every Estonian teacher deserves their dream home.

Strategic Principles:

• Respectful and appreciative tone toward teachers.
• Consistent thematic treatment throughout the entire year.
• Utilization of target group-specific channels.
• Sharing of personal experiential narratives.
• Communication of statistical data.

Target Groups

• Kindergarten and general education school teachers (including assistant teachers, support specialists, psychologists, special education teachers, educational counselors, curriculum coordinators, and heads of educational institutions)
• Educational sector organizations
• Media
• General public

Project Implementation

• In January 2024, the Teacher Home Loan was launched with an interest rate starting from 1.69% + 6-month Euribor. To disseminate the announcement, personalised letters were distributed to education worker mailing lists, messages were shared in teachers' Facebook groups, organic collaboration with influencers was established, and media interviews were conducted.
• The campaign garnered extensive media coverage, appearing in national news outlets, radio, and television.
• Activities continued in February and March, including an experiential story on the "Simply About Money" podcast, an opinion piece in Teachers' Journal, and lectures delivered in schools as part of Financial Literacy Month. The timing was strategically coordinated immediately prior to the teachers' strike to achieve maximum attention.

Results

• 23% of teachers utilized the Enterprise Estonia (EAS) housing guarantee for home acquisition.
• Coop Pank's reputation as a socially responsible bank was strengthened.
• The communication activities resulted in the emergence of a new "teacher benefits" trend in the market, with the largest competitor LHV introducing a similar offering.
• Media Coverage: The campaign generated impactful media coverage across virtually all major media channels.
• Total volume of teacher home loans: 22 million euros – the target was 10 million euros annually, with results exceeding expectations by twofold. Average loan amount: 94,000 euros, average loan term: 19 years.
• Every fourth loan application during the campaign's active period originated from teachers, constituting 25% of all Coop Pank home loan applications.
• Every tenth home loan issued by Coop Pank in 2024 was granted to teachers for improving their living conditions.
• 34% overall growth in home loan new sales at Coop Pank in 2024.
• According to a survey conducted at the end of 2024, general awareness that Coop Pank offers home loans increased from 37% to 43% as a result of the Teacher Home Loan communication campaign.
• 35% of respondents confirmed that if they were to take out a home loan, they would be prepared to obtain it from Coop Pank.