Clients that have invested in training their employees about the value of their card products, as well as offering incentives, are experiencing card growth that can only be described as exceptional, particularly considering the state of the economy and the overall perception of the card industry.
Dallas, TX (Vocus) October 20, 2009
TNB Card Services reports that the number of credit union cardholders is on the rise, based on data it has compiled among its many clients. The electronic payments processor reports a year-over-year increase of 30 percent in new card accounts, as well as an eight percent increase in outstanding balances, among credit union clients that have benefited from TNB's expertise for more than one year.
While national card issuers are retreating and re-evaluating their card strategies in light of the Credit CARD Act and the economy, TNB clients are proactively meeting the financial needs of their members and growing their card portfolios and wallet share through in-branch promotions and by training employees to cross-sell.
The sizable growth in new accounts contributed to an overall increase of nearly seven percent in the total number of accounts on file for client credit unions at a time when the overall credit union card industry was flat. TNB also points out that card retention strategies are paying off in lower attrition for its clients. They reported an eight percent decrease in year-over-year attrition compared with the national average of 23 percent.
"In many ways, the Credit CARD Act has given credit unions an unprecedented opportunity to change the credit card landscape and gain wallet share," said Mark Fenner, senior vice president, TNB Card Services. "Consumers are turning to credit unions because of their relationship philosophy and member-friendly card policies, which is gaining widespread media attention due to the predatory lending practices of many national financial institutions."
Fenner added, "Credit unions are relying on our expertise to help them capitalize on their branch investments and employees in order to grow their card portfolios."
As an example, MCT Credit Union of Port Neches, Texas, has added more than 300 new cardholders since January 2009 by implementing an in-branch card strategy developed by TNB. "For the past two years we averaged eight new card accounts a month. Since we rolled out our in-branch card effort, which included in-depth employee training and an incentive program, we are now averaging 38 new card accounts per month," said Sandra Duvall, marketing director for MCT Credit Union.
Duvall added, "The in-branch program TNB put together for us has been so successful that we are planning on duplicating the ideas to help us cross-sell all of our products within our branches."
TNB account executives work closely with credit union executives to develop card strategies tailored to the individual goals of the credit union. TNB's In-branch promotions have proven to be a highly effective vehicle for increasing cardholders and driving usage. Clients benefit from a full range of in-branch marketing services, including employee training, incentive programs, and turnkey campaigns, as well as TNB's new Advanced Marketing Portal that enables credit unions to customize and manage card portfolios online.
"The success of a card portfolio starts with a commitment from the chief executive officer," said Fenner. "Clients that have invested in training their employees about the value of their card products, as well as offering incentives, are experiencing card growth that can only be described as exceptional, particularly considering the state of the economy and the overall perception of the card industry."
About TNB Card Services
TNB Card Services, owned and directed by credit unions since 1976, provides electronic payments processing for credit unions nationwide. Serving more than 550 financial institutions of all sizes and managing more than 2 million cards, Dallas-based TNB enables credit unions to enhance member loyalty through credit union-branded card products. For more information about TNB, go to http://www.tnbcard.com or call Mark Fenner at 1-800-422-0733 ext. 6655.
Jan Dailey, SVP, Marketing Manager
Kristine Tanzillo, Dux Public Relations
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