Eleven credit unions re-up with credit card-issuing CUSO TMG Financial Services
DES MOINES, IA (March 2, 2017) — Eleven credit unions from across the U.S. have renewed partnerships with top-65 credit card issuer TMG Financial Services (TMGFS). The multi-year contract renewals signify the movement’s ongoing need for a credit union-centric agent issuer.
“Running a sustainable, competitive credit card program isn’t getting easier,” said Benjamin Rempe, TMGFS vice president of business development. “Credit cardmembers are more demanding today than ever before. They want innovative ways to pay, clear and concise rewards, great perks, low fees – and all under an umbrella of outstanding, hyper-personalized experiences. That takes marketing savvy, data analytics know-how, underwriting skill and a deep bench of experts with futurist mindsets. Credit unions often find these capabilities easier to mobilize when partnering with a dedicated, outside resource.”
Since partnering with the agent issuer, these 11 credit unions achieved, on average, outstanding balances growth of nearly 80 percent. Several have more than doubled the number of members who now carry the credit union’s credit card.
“Credit unions that have partnered with TMGFS have recognized the need to dedicate their resources to other important strategic initiatives. They’ve determined a focused and dedicated partner can help them maneuver a rapidly changing credit card ecosystem,” said Rempe. “We understand credit union members, and we know credit cards better than anyone else. That’s why our partners continue to rely on TMGFS to help deepen relationships with key segments of their membership base.”
Among the credit unions that renewed partnership with TMGFS in 2016 is Community 1st Credit Union, which sold its portfolio to the agent-issuer CUSO in 2010. Since that time, the Ottumwa, Iowa, credit union has grown cardmembers by nearly 30 percent and outstanding balances by more than 40 percent. VP of Marketing Anne Hagen attributes that in large part to her credit union’s partnership with TMGFS.
“From the annual employee incentive program to individual branch visits, the over and above strategies TMGFS executes demonstrates their commitment to our success,” said Hagen. “TMGFS staff works with our management to ensure our goals are accurate and to provide the kind of training and assistance that prepares us to provide a great member experience.
“Ultimately, we want to be our member’s primary financial institution,” Hagen continued. “The more products and services they open with Community 1st, the stronger we become as a cooperative. The credit card plays a key role in engaging our members.”
“Not only are credit unions renewing their partnerships with agent issuers, still others are selling their credit card portfolios for the first time,” said Rempe. “It may not be as widely reported as it once was, but it’s happening. The highly competitive, highly regulated credit card market isn’t friendly to financial institutions that strategically decide to invest their resources elsewhere. Yet, credit unions know how important credit cards are to the member relationship, so they often find themselves in need of an immediate solution.”
About TMG Financial Services
TMG Financial Services (TMGFS) is known for providing collaborative, innovative and consumer-oriented solutions in the payments industry. With comprehensive credit card programs, products and services, TMGFS ensures financial institutions and member-based associations have the tools to thrive in the competitive financial services marketplace. TMGFS was named one of America’s fastest-growing companies by Inc. Magazine and currently has more than 127,500 credit cards and $198.8 million in assets under management. For more information, visit www.tmgfinancialservices.com.
