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TMG develops cardholder profitability tool

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DES MOINES, Iowa (4/13/10)--In response to client demand, TMG (The Members Group) has developed a data tool that examines the revenue a financial institution earns from each individual account in its credit card portfolio. The TMG Cardholder Profitability Data File is available monthly and includes detailed income information to help credit card portfolio managers determine the actual revenue earned from a cardholder's monthly activity. Data fields include late fees, foreign fees, transaction totals, current balance and interest billed. "You can never have too many attributes when examining a cardholder file," said TMG client Bonnie Fannin, assistant vice president, credit cards, at Orange County's CU, based in Santa Ana, Calif. "Profitability is one attribute among others that will help us in selecting our target audience for a variety of marketing programs." TMG anticipates the product will accelerate evaluation of individual cardholder requests, such as credit line increases and pay-off schedules, ultimately resulting in a more satisfied cardholder. The data also could help managers predict better the profitability of card portfolio upgrades, such as rewards programs and assess the success of recent marketing initiatives. "Cardholder-level reports are becoming increasingly important for credit card issuers who face complex decisions in the new Credit CARD Act environment," said Cindy Tannatt, TMG's director of client services. Fannin, whose credit union recently eliminated overdraft fees and default pricing due to challenges created by the Credit Card Accountability, Responsibility and Disclosure Act, says she sees potential for the data to shed light on decisions made inside a changing regulatory environment. "By assigning profit numbers to cardholder accounts, we would be better able to model the profitability outcomes of eliminating or assessing fees," she said.

CO-OP TEKchand team up on ATM network management

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RANCHO CUCAMONGA, Calif. (4/13/10)--CO-OP Financial Services has teamed up with Chicago-based TEKchand LLC to enhance CO-OP's managed ATM services suite so credit union clients can remotely control and manipulate marketing messages, and access and research transaction reports. The partnership includes services that allow credit unions to remotely create and manage the ATM marketing messages. The software upgrade also will provide access to electronic journal (EJ) files and the ability to query on-demand ATM transactions. "ATMs are becoming a true extension of a credit union's brand," said Stan Hollen, president/CEO, CO-OP Financial Services. "By allowing credit unions to remotely update ATM graphics and messages, we're providing credit union members a much quicker and very cost-effective way to expand their marketing campaign and create another sales channel," Hollen said. The new application provides multi-vendor device support to seamlessly manage an ATM fleet with one application. It can be purchased either separately or as a part of an upcoming CO-OP ATM Managed Services bundle. The TEKchand application also makes collection and review of data from electronic transaction files easier and more cost effective. The data are more useable because the application allows credit unions to pull the ATM e-file on demand, put the file into a view and perform various searches. EJ files are transaction records sent from the CO-OP host to the ATM. Traditionally, the ATM stores these transaction records on a paper-based file or an e-file, or uploads automatically back to the CO-OP host. Back-office staff often need access to the EJ files to research ATM cash differences. They must request paper or e-based files, duplicate them into a transportable format and store them. Daily reports in these formats are not user friendly, often have limited query capabilities and are hard to navigate, said CO-OP. The addition to the managed ATM services enhances this process. The CO-OP ATM Managed Services suite, available later this year, includes flexible ATM terminal driving, implementation support, cash management, terminal monitoring, IP data communication and options to add features such as check imaging, content distribution and other state-of-the-art ATM functionality. In partnership with TEKchand, marketing management and transaction research will be added to the suite.

Filene launches debt-management tool

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MADISON, Wis. (4/13/10)--Debt in Focus, a Web-based debt management tool, is newly expanded and available for credit unions that want to help members anonymously make smart decisions about their family finances, said Filene Research Institute. The tool, the result of a partnership between the Filene’s i3 group and Ent FCU, Colorado Springs, Colo., was beta-tested by 288 credit unions and 150,000 consumers in 10 months. Feedback led to program enhancements, which were completed April 1. In a small, private launch, the new version already has garnered 126 credit union clients in two weeks. “Americans have amassed about $2.5 trillion in consumer debt, and many of them are looking for what to do about it,” says George Hofheimer, Filene chief research officer. “Debt in Focus is a simple, jargon-free roadmap that helps those consumers who are drowning in their financial situations.” With the tool, members can check up on their financial health anonymously through the Internet, removing the most common barrier that prevents consumers from seeking financial help while eliminating most of the costs associated with providing such assistance. The tool offers:
* Custom branding and keyword mapping to direct users to specific product offerings of the host credit union; * White-label marketing campaigns, collateral, peer-to-peer support, and video content; * The ability for users to opt-in to being contacted by the host credit union, making way for deeper financial counseling and cross promotion; and * Full 256-bit SSL encryption and secure, SAS70 compliant hosting.
Users spent an average of 16 minutes with the tool during testing. The average reported credit score of users is 682, average revolving debt is $18,822 and overall debt load is $150,558, indicating that those who tune in to the tool have real challenges with their finances, Filene said. For more information, use the link.