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Filed on October 20, 2009, published the first business day after.
- CUNA sparks interchange grassroots action
- Corporate CU sues U.S. Central over ‘excess capital’
- Matz encourages CUs to use new CDFI ed. program
- Hyland: 2010 assessment is unpredictable
- CUNA analyzes reserve, reporting requirements
- Inside Washington
- USA Today says try CUs to obtain credit cards
- Minn. foundation adds 2 new board seats, appoints directors
- Texas CU Foundation expands fin lit outreach to Belize
- Regulator: CUs should keep paper copies of loan docs
- Iowa league announces board at convention
- Clarke Community FCU merges with Gwinnett FCU
- CU System briefs
- Market News
- News of the Competition
- Hidden costs add to holiday travel budget
- In-branch promotions key to driving card use
CUNA sparks interchange grassroots action
WASHINGTON (10/21/09)--The Credit Union National Association (CUNA) continues to stride toward its goal of sending 250,000 interchange postcards to Senators in October.
CUNA launched its interchange grassroots advocacy campaign, which features symbolic credit card postcards bearing the iconic credit union little guy, earlier this month.
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A member at North Caroilna-based Welcome FCU fills out her postcard, becoming one of thousands taking part in CUNA's grassroots advocacy. |
Credit union leagues nationwide have distributed the materials, which include interchange talking points and other communications materials aimed at educating credit union members on the interchange issue.
One grassroots action hotspot is North Carolina, where the North Carolina Credit Union League has helped distribute 8,500 postcards to 13 credit unions, with some branches already running out. Nearly 600 individual postcards were sent to Senators Richard Burr (R-N.C.) and Kay Hagan (D-N.C.) on Oct. 16th, and North Carolina Credit Union League Director of Political Affairs Mickey Fanney told News Now that the League expects to send out another 500 postcards to its member credit unions before the end of this week.
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| CU members sign interchange postcards before they are mailed to their Senators. |
Fanney said that "the dedication of member owners to their credit union and its success" is one factor that sets credit unions apart from other financial institutions, adding that the dedication to see credit unions succeed and continue to bring the best value to members "shines when we run a grassroots campaign such as the interchange postcards."
Virginia's credit unions are also among those that have responded to the call for action, requesting 10,000 campaign postcards from the Virginia Credit Union League.
Karma Samartino of Boise, Idaho's Idahy FCU commented on the efforts of individual credit unions, saying that her credit union "continually" works to inform members on legislative activity that will affect their personal financial accounts. "It is important to our members to know that their opinions matter with the Idaho Congressional Delegation and the postcards provide the opportunity to get that message to our U.S. Senators. We are fortunate in Idaho to have Congressmen that listen and respond to what their constituents say," she added.
CUNA has fiercely opposed merchants proposals that would affect interchange fees. Interchange reflects a merchant's fair share of the costs of the convenient card system and supports everything from re-issuing cards compromised by merchant data breaches to providing a call center to contact if a card is lost or stolen.
Corporate CU sues U.S. Central over ‘excess capital’
WASHINGTON (10/21/09)--In legal documents filed late last week, Wisconsin-based Corporate Central CU is seeking the reimbursement of $6 million in excess investments from U.S. Central FCU.
In the court complaint, which was filed in U.S. District Court for the Eastern District of Wisconsin, Corporate Central claims that a late 2008 change in U.S. Central's bylaws prevented Corporate Central from receiving $6 million in funds via a Membership Capital Share (MCS) refund.
This change involved an alteration to policies governing the recalculation of required MCS balances to create an "adjustment refusal policy" that would prohibit MCS refunds to U.S. Central members, even in the event that a member was entitled to a MCS refund based on its investment and loan levels.
U.S. Central's previous policy required member credit unions to maintain MCS and other capital equal to at least 5% of their total investments in U.S. Central and associated loans from U.S. Central. This percentage was recalculated every six months, and members could reportedly receive refunds of excess MCS if their total investments and loans with U.S. Central had decreased.
The complaint alleges that the bylaw change was invalid because some U.S. Central board members, who are not specifically named in the complaint, should have allegedly recused themselves from voting on the bylaw change.
According to the complaint, the voted on policy represented "a pecuniary benefit" to some U.S. Central board members whose institutions would not have received a refund of MCS at that time because it "eliminated or reduced the amount of capital they would have been required to contribute in the absence of the Adjustment-Refusal Policy."
Additionally, Corporate Central has alleged that the National Credit Union Administration violated equal protection of rights under the U.S. Constitution by allowing the adjustment refusal policy adopted by U.S. Central to continue once the NCUA became U.S. Central's conservator.
U.S. Central did not notify Corporate Central of the policy change until Dec. 22, 2008, according to the complaint. Corporate Central held just over $1.3 billion in both direct and indirect investments in U.S. Central as of Dec. 31, 2008.
The causes of action named in the complaint are conversion, breach of contract, violation of bylaws, violation of equal protection of rights, and declaration of rights.
NCUA Director of Public and Congressional Affairs John McKechnie said that the agency is reviewing the complaint and does not comment on pending litigation.
Matz encourages CUs to use new CDFI ed. program
ALEXANDRIA, Va. (10/21/09)--National Credit Union Administration (NCUA) Chairman Debbie Matz on Tuesday welcomed the launch of the U.S. Treasury's Community Development Financial Institutions (CDFI) Fund's Financial Education and Counseling (FEC) Pilot Program as "another avenue for credit unions to explore as they seek new resources to benefit their members."
According to the CDFI Fund, the goal of the FEC program is "to identify successful methods resulting in positive behavioral change for financial empowerment, and to establish program models for organizations to carry out effective financial education and counseling services to prospective homebuyers." The CDFI Fund will award funds to organizations that provide financial education services to potential homebuyers.
The CDFI Fund on its Web site said that those educational services may be activities that increase the financial knowledge and decision-making capabilities of homebuyers and assist them in developing budgets, increasing their savings, reducing their debt, financing or planning for major purchases, and generally improving financial stability.
The CDFI Fund was given $2 million for the implementation of this program in March of this year.
Commenting on the FEC Program, Matz said that "financial education is a natural service for credit unions," and encouraged credit unions "to use all resources at their disposal to help members expand their financial knowledge."
The CDFI Fund will hold a conference call for organizations interested in applying for funding through the FEC Program on Thursday, October 22, 2009 at 2:00 p.m. ET. Organizations that are interested in applying must do so by 5:00 p.m. ET on November 19, 2009.
Hyland: 2010 assessment is unpredictable
WASHINGTON (10/21/09)—The National Credit Union Administration (NCUA) cannot predict what credit unions'2010 share insurance assessment will be because of the unknown future of such things as expenses, share growth, investment yields and resolution costs, according to NCUA board member Gigi Hyland. However, she added, budgeting between 15-30 basis points would likely be appropriate.
Hyland noted that the agency would disseminate more information on the issue following either the Oct. 22 board meeting or the Nov. 19 meeting. She made her made remarks earlier this week at an American Institute of Certified Public Accountants Conference on Credit Unions.
At last month's board meeting, Melinda Love, director of NCUA's Office of Examination and Insurance, said she thought credit unions could plan on a 15-30 basis point assessment for next year. Chairman Deborah Matz wanted more precision in that figure for credit union planning purposes and requested that staff bring a more honed estimate of 2010 premium costs to the Oct. 22 meeting.
How this is presented will be of interest, however, because some observers note that if the agency announces a precise figure for the future premium assessment, accountants may require credit unions to book the costs this year.
Also on the agenda, as reported earlier in News Now, are the regular monthly report to the NCUA board on the state of the NCUSIF, as well as action on a final rule addressing increased federal share insurance coverage to $250,000 through 2013 and increased coverage for revocable trust accounts.
CUNA analyzes reserve, reporting requirements
WASHINGTON (10/21/09)--The Credit Union National Association (CUNA) has posted a final rule analysis on the Federal reserve Board's recent amendments to the reserve and reporting requirements for depository institutions under Regulation D.
Regulation D addresses reserve and reporting requirements for credit unions, banks and thrifts by requiring reserve balances and frequency of reporting commensurate with funds held by these depository institutions in certain Federal Reserve accounts.
The Fed has increased the amount of funds that are exempt from reserve requirements during 2010 to $10.7 million, up from the $10.3 million exemption ceiling that was provided in 2009. Any funds in excess of the exemption ceiling but less than $55.2 million, the so-called "low reserve tranche," will be subject to a 3% reserve requirement. Any funds in excess of the low reserve tranche will be subject to a $1.3 million reserve requirement as well as a 10% surcharge, CUNA reported.
The Fed has also established new compliance dates. Depository institutions that report weekly will apply the reserve requirements to their 14-day reserve computation periods beginning on December 1, 2009, and the corresponding reserve maintenance period beginning on December 31, 2009. Depository institutions that report quarterly will apply the reserve requirements to their 7-day reserve computation periods beginning on December 15, 2009, and the corresponding reserve maintenance period beginning on January 14, 2010.
The deposit cutoff level of $243.1 million, the reserve requirement exemption amount, and the reduced reporting limit will be used for all depository institutions.
To see CUNA's final analysis of the Fed amendments, use the resource link.
Inside Washington
- WASHINGTON (10/21/09)--TierOne Corp., Lincoln, Neb., and Citizens First Bancorp, Port Huron, Mich., are among several financial institutions that are being required by regulators to restate their second quarter financial statements. The restatements will result in capital ratios below regulator minimums at both companies (American Banker Oct. 20). The restatements will likely become more common at financial institutions as regulators scrutinize banks' loan and asset value assessments. In the past, a bank could give its estimated values of a loan and that would be sufficient, according to Douglas Landy, partner, Allen & Overy LLP. Now, that's not good enough, he said. Citizens First's re-assessment was driven by differences with the Federal Deposit Insurance Corp. In a securities filing earlier this month, the bank said its $35.3 million allowance for losses was not adequate. At TierOne, the bank differed with the Office of Thrift Supervision on the value of its underlying collateral. Before the restatement, TierOne's numbers came out looking better than they had, said Theodore Kovaleff, Horwitz and Associates analyst, but now, "all bets are off." TierOne told American Banker it tries to be as realistic as possible with its numbers, but new information often arises ...
- WASHINGTON (10/21/09)--The Federal Reserve Bank of New York said Monday that it is testing a market tool that could potentially absorb excess cash from the financial system, but said it was not ready to use the tool. The tool would reverse repurchase agreements to drain excess reserves from the central bank to avoid the risk of inflation (The New York Times Oct. 20). During a reverse repurchase agreement, the Fed sells assets like treasuries in exchange for cash with an agreement to re-purchase them later at a higher price--thus removing cash from the system, the newspaper said ...
- WASHINGTON (10/21/09)--National Credit Union Administration board member Michael E. Fryzel spoke at the Valley of the Sun Chapter of the Arizona Credit Union League's dinner celebrating International Credit Union Day in Phoenix. He urged credit union officials to speak out about the good things credit unions are doing--like providing scholarships, supporting community events, holding fundraisers and going to the extra mile to help credit union members. "They truly exemplify the credit union philosophy of people helping people," Fryzel said ...
USA Today says try CUs to obtain credit cards
MADISON, Wis. (10/21/09)--Consumers should consider credit unions when they are looking to apply for credit cards, a columnist for USA Today wrote Tuesday.
"If you don't care about rewards and just want a credit card that doesn't charge an annual fee, consider applying for a card through a credit union," wrote personal finance columnist Sandra Block. "Many credit unions charge no annual fee and offer below-average interest rates."
Due to credit card legislation that will--among several mandates--restrict credit card issuers ability to raise interest rates on existing balances, the credit card industry--in response--is implementing other fees, Block wrote.
For instance, starting in 2010, Bank of America will charge some customers an annual fee ranging from $29 to $99, Block explained.
Also, Citigroup Inc. is beginning to charge annual fees to cardholders who don't charge more than a specific amount on their cards--usually $2,400 per year, she added.
Other banks are charging inactivity fees for customers who don't use their credit cards during a specific period of time, Block wrote.
"You heard that right: You could be spanked for staying out of debt," she added.
Minn. foundation adds 2 new board seats, appoints directors
SAINT PAUL, Minn. (10/21/09)--The Minnesota Credit Union Foundation (MnCUF) added and filled two new seats to its board of directors at the board's Oct. 8 meeting as part of the foundation's recent development progression.
Dave Larson of Affinity Plus FCU (APFCU) and Pat Brekken of Richfield/Bloomington CU (RBCU) have been appointed to one-year terms on the MnCUF board, following an affirmative membership vote on the bylaw amendments recommended at the annual meeting in July.
Larson is senior vice president of APFCU, where he has worked for nearly eight years. He also serves as the executive director of the Affinity Plus Foundation, whose mission is to promote financial literacy statewide.
Brekken is RBCU's president, a position he has held for the past five years of his 13-year career with the credit union. He currently serves as a director of the Richfield Spartan Foundation, which raises money to support youth participation in sports and fine arts activities throughout Richfield.
In 2008, Brekken served as chair of the MnCUF's Homes for Our Troops Fundraising Committee. Through this initiative, Minnesota credit unions contributed $150,000 to build a specially-adapted home in Woodbury, Minn., for a wounded Iraq War veteran.
The two newest board members join the five existing MnCUF directors, re-elected by the membership in July. The directors and term expiration dates are:
- Chuck Albrecht, Mid-Minnesota FCU, Baxter (2012);
- Vice Chair Lynn Kothe, North Memorial FCU, Robbinsdale (2012);
- Mukomela, Novation CU, Oakdale (2012);
- Mary Hansen, Mayo Employees FCU, Rochester (2011);
- Secretary/Treasurer Judy Root, Bluestone FCU, Eagan (2011);
- Larson, APFCU, St. Paul (2010); and
- Brekken, RBCU, Richfield (2010).
Since attaining status as a 501(c) 3 public charity in 2007, the MnCUF board has undergone a strategic planning process, with the aim of strengthening its governance structure and broadening its focus. Other recent accomplishments have included revising bylaws, creating and improving operational policies, establishing a greater Web presence, and recruiting a volunteer administrator.
"I am energized by our progress, and we are very excited about continuing to develop the foundation into the premier charity that we know it can be," said MnCUF Chair Kristi Mukomela.
Texas CU Foundation expands fin lit outreach to Belize
FARMERS BRANCH, Texas (10/21/09)--The Texas Credit Union Foundation (TCUF) has expanded its outreach to Central America through a recent "train the trainer" session to help teach financial literacy in Belize.
Courtney Nickles, foundation executive director, recently presented the National Endowment for Financial Education High School Financial Planning Program, a financial literacy program aimed at high school-aged students, to educators, credit union staff and community leaders in Belize. The Belize Credit Union League has a partnership with Southwest Corporate FCU in Plano, Texas (LoneStar Leaguer Oct. 20).
During the session, Nickles gave classroom-style presentations and had interactive role-playing activities to help students relate to their materials.
"We can see how our partnership with the foundation will facilitate a wide cross-section of credit union members and high school students to learn fundamental financial management skills, which will allow them to make informed financial decisions from an early age," said Corinne Fuller, Belize league executive director. "We are excited about the possibility of including financial planning in our high school core curriculum."
The Ministry of Education in Belize also attended the presentation.
"We at the Ministry of Education believe that financial education should definitely be included in the curriculum if we are truly educating our students to take care of themselves, as well as to participate in nation building," said Carol Babb, Ministry of Education deputy chief education officer. "We intend to integrate this topic in the social studies curriculum."
Belize has the highest literacy race in Latin America, but the country is plagued with poverty and unemployment, said Victor Miguel Corro, World Council of Credit Unions senior manager of international partnerships.
"Providing the people of Belize with the tools to make better choices with their money, coupled with access to affordable financial services, remains essential to improving the quality of life in the country," Corro said.
Nickles noted that the presentation was an emotional experience, and the participants were incredibly appreciative.
"The luxury of accessible information we are afforded allows us to be aware of the basic fundamentals of financial information, but only when you see the genuine appreciation and comprehension of those individuals who have never learned something we take for granted, like how to balance their checkbook, do you realize how fortunate we are," Nickles said.
Regulator: CUs should keep paper copies of loan docs
OLYMPIA, Wash. (10/21/09)--Credit unions may want to keep paper copies of an original note, deed or loan agreement in addition to an electronic copy in case a document is needed for litigation, said the Washington State Department of Financial Institutions (DFI).
Many credit unions have adopted electronic record storage systems, consistent with some state and federal laws, such as the federal Electronic Signatures in Global and National Commerce Act of 2000, which provides that a signature, contract or other record may not be denied legal effect because it was signed electronically.
However, the laws do not resolve all legal or practical issues necessary to make sure the records comply with requirements. Therefore, credit unions should design and operate their electronic record systems to serve:
- Potential use in litigation support;
- Internal and external audits and controls; and
- Compliance with regulatory requirements.
Credit unions adopting electronic record systems should address the risks of inadequate record retention. Failing to maintain adequate record retention systems can create risk, the DFI said.
For more information, use the link.
Iowa league announces board at convention
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The Iowa Credit Union League board was elected Sept. 24. From left are board members Tim Marcsisak, John Bentler, Rick Benhart, Pat Drennen, Dennis Choate, Mike Whittie, Tim Wallen, Joe Hearn, Janine Keim, Tim Chapman, Joe Gonzalez, and Brent Helin. (Photo provided by the Iowa Credit Union League)
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The 12-member board represents Iowa's 138 credit unions and one million members, the Iowa league said.
"On behalf of the Iowa Credit Union League, I would like to congratulate these individuals for being elected to the league board of directors," said Pat Jury, league president/CEO.
He noted the league appreciates the board's willingness to lead the league and fulfill its long-term strategic vision.
Board members for the up to 6.9 million asset category are:
- John Bentler, River Bend CU, West Burlington;
- Janine Keim, Consumers CU, Denison; and
- Dennis Choate, Quaker Oats CU, Cedar Rapids.
Board members for the $7 million to $19.9 million asset category are:
- Joe Gonzalez, Alliant CU, Dubuque;
- Tim Marcsisak, Nishna Valley CU, Atlantic; and
- Michael Whittie, Federal Employees CU, Des Moines.
Board members for the $20 million to $49.9 million asset category are:
- Tim Chapman, Members Community CU, Muscatine;
- Brent Helin, Des Moines Metro CU, Des Moines; and
- Tim Wallen, Ace Community CU, Ames.
- Rick Benhart, Collins Community CU, Cedar Rapids;
- Chair Pat Drennen, 1st Gateway CU, Camanche; and
- Vice Chair Joe Hearn, Dupaco Community CU, Dubuque.
Clarke Community FCU merges with Gwinnett FCU
ATHENS, Ga. and LAWRENCEVILLE, Ga. (10/21/09)--The Clarke Community FCU board recently agreed to merge with Gwinnett FCU. Both credit unions are in Georgia.
The merger will provide Clarke Community members with access to Gwinnett FCU's full range of financial products and will give Gwinnett a presence in Clarke County, Gwinnet said.
"The merger of our two credit unions demonstrates a shared commitment and vision on the part of both boards to grow and remain highly competitive in today's financial marketplace," said Marshall Boutwell, Gwinnett president/CEO. "There will be no layoffs, and Clarke Community will retain its name, operating as a division of Gwinnett Federal."
Gwinnett FCU, based in Lawrenceville, Ga., has $148 million in assets and serves 27,000 members in a five-county area.
Clarke Community FCU, based in Athens, Ga., has $18.7 million in assets.
CU System briefs
- DOVER, Del. (10/21/09)--A Dover (Del.) FCU teller was pushed to the ground during an attempted armed robbery at the credit union last month, according to the Delaware Credit Union League (Together Oct. 15). Police reported that one suspect pushed the teller onto the floor while the other suspect held a gun on another employee, demanding the key to the vault. The teller was not able to comply, so the robbers fled the credit union. A surveillance tape shows that one of the suspects had two handguns. No one was physically injured during the incident ...
- ALLENTOWN, Pa. (10/21/09)--James B. Baily, 86, a founding member of A.B. Bellco FCU--now Lehigh Valley FCU--died Thursday. He worked for the credit union as an officer for 50 years (Allentown Morning Call Oct. 17). Lehigh Valley FCU has $14 million in assets ...
Market News
MADISON, Wis. (10/21/09)
- The Federal Reserve has more rationale to keep interest rates low to help ensure an economic recovery due to builders starting construction on fewer homes than anticipated, and wholesale prices unexpectedly dropping in September, analysts said. U.S. housing starts increased 0.5% to an annual rate of 590,000 in September from a 587,000 pace in August, a Commerce Department report said Tuesday. Also, prices paid to factories, farmers and other producers dropped 0.6%--the second decline in three months, the Labor Department said. The producer price drop affirms the Fed's view that inflation is "subdued," and helps Fed Chairman Ben Bernanke and policymakers keep their promise to maintain the benchmark rate at a record low for an "extended period," analysts said. "Builders are a little bit cautious about the outlook," said Zach Pandi, an economist at Nomura Securities International Inc. "There is still a huge amount of slack in the economy, and downside risks for inflation" (Bloomberg.com Oct. 20) ...
- U.S. wholesale prices fell in September, reflecting weak domestic demand, while investors were bidding up prices of gold and oil, analysts said. The government's Producer Price index dropped 0.6% in September, after rising 1.7% in August, the Labor Department reported Tuesday. The data indicate that--despite a weakening dollar, inflation remains a distant possibility because the American economy is struggling to come out of a deep recession, analysts said. "The demand for goods is still very soft; the U.S. economy is just barely recovering," said Allen Sinai, president of Decision Economics. "In a weak economy where consumer spending is weak, businesses have been slashing left and right. This surprisingly deflationary result reflects that" (The New York Times Oct. 21) ...
News of the Competition
MADISON, Wis. (10/21/09)
- The Obama administration Monday introduced a new mortgage plan to help state and local housing agencies finance mortgages for first-time buyers. The program also will help develop rental housing. Because of the housing crisis and credit crunch, the agencies have had a difficult time raising money, analysts said. In 2009, the agencies have sold roughly $4 billion in tax exempt bonds--about one quarter of the typical annual amount--which is limiting the amount of loans they can make, analysts said. Mortgage finance companies such as Fannie Mae and Freddie Mac will participate in the program to help alleviate the financing crunch. The two government-sponsored enterprises will package mortgages made by housing agencies and sell them as bonds to the Treasury Department (USA Today Oct. 20) ...
- A Bank of America (BofA) e-mail indicated that company executives thought BofA's government assisted purchase of Merrill Lynch would boost Merrill's stock price. Instead, the stock imploded. "The chairman of the Federal Reserve indicated it would be structured in such a manner such that [BofA] stock should go up when announced," Joe Price, chief financial officer, said in a Dec. 29 e-mail to BofA executives, including CEO Kenneth Lewis. In the aftermath of $50 billion in write-downs and losses connected to the subprime mortgage market, Merrill--the largest global broker--agreed to be acquired ( Bloomberg.com Oct. 20) ...
Hidden costs add to holiday travel budget
ATLANTA (10/21/09)--Airlines are tacking on fees at every opportunity, according to Associated Press airlines writer Harry R. Weber. That means your holiday travel may end up costing a lot more than you thought (Associated Press Oct. 8).
While you may not be one of those paying $100 to check a fragile item--like antlers on Frontier Airlines--you could get socked with unexpected fees. Airline policies vary, so check the rules for your carrier.
- Boogie boards, skate boards, and even bowling balls may cost extra for handling and packaging. It may cost less to rent the item at your destination, and you avoid having it damaged or lost by the airline.
- It can cost $100 or more one way to travel with your pet. Boarding and professional pet sitters are options. Or, consider trading pet care duties with a neighbor.
- Size and weight matters to the airlines. Measure the height, width, and depth of carry-on and checked bags, and make sure they are within airline requirements. Oversized bags can incur an extra fee regardless of how much they weigh. Even an ounce over the baggage weight limit can cost $50 or more. To avoid having to pay the fee, or the embarrassment of removing a few items at the counter, weigh your bag before you leave home.
- If you're booked on the red eye or just want to catch a few ZZZs, be prepared to pay for a blanket and pillow.
- Most airlines add a fee ranging from $25 to $100 to send a child younger than age 12 on a flight alone. Weber notes that parents usually can walk children to the gate where they are left in the company of a crew member.
Charges for checking baggage, in-flight snacks, and window or aisle seating also boost the total cost of your ticket. With all those extra fees, over the river and through the woods by horse and sleigh may be the cheapest way to visit grandma for the holidays.
For more information, read "Find Good Travel Deals Even in a Bum Economy" in the Home & Family Finance Resource Center.
In-branch promotions key to driving card use
DALLAS (10/21/09)--In-branch credit union promotions are highly effective for increasing the number of credit or debit cardholders and driving card use, according to TNB Card Services.
"The success of a card portfolio starts with a commitment from the chief executive officer," said Mark Fenner, TNB Card Services senior vice president. "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."
TNB, which provides electronic payment services to credit unions, reported a year-over-year increase of 30% in new card accounts, and an 8% increase in outstanding balances. The sizable growth in new accounts contributed to an overall increase of nearly 7% in the total number of accounts on file for client credit unions when the overall growth for the credit union card industry was flat.
MCT CU, Port Neches, Texas, has added more than 300 new cardholders since January by implementing an in-branch card strategy developed by TNB.
"For the past two years, we averaged eight new card accounts a month," said Sandra Duvall, MCT CU marketing director. "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."
TNB clients also reported an 8% decrease in year-over-year attrition compared with the national average of 23%.
TNB account executives work with credit union executives to develop card strategies tailored to the individual goals of the credit union. TNB offers in-branch marketing services, including employee training, incentive programs and campaigns. Credit unions also can customize and manage their card portfolios.
Copyright © 2009 - Credit Union National Association, Inc.
