Coop Bank " Teacher Home Loan"

Situational Analysis

Teachers are of paramount importance to society, yet their workload, responsibilities, and compensation remain disproportionate.
Teachers' salaries frequently pose barriers to homeownership.
Growing concern for teachers' welfare has emerged across Estonian society, culminating in extensive strikes by education sector workers in early 2024.
Teachers' circumstances directly or indirectly affect a substantial number of Estonian families.
Banks typically offer preferential treatment exclusively for purchasing A-class energy-efficient homes, which are often financially inaccessible to teachers.
As a domestic banking institution, Coop Pank has the opportunity to address a socially significant concern and contribute to improving life in Estonia.
Potential to strengthen brand positioning as a socially responsible bank.
The teacher demographic represents a well-defined and accessible target group through specific channels.
Opportunity to create competitive advantage by offering a distinctive product.
Strategic timing immediately preceding teachers' strikes to ensure maximum public attention.

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:

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

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.

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.