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Three Credit Unions Turn to ‘Big Data’ for Portfolio Growth

DES MOINES, IA (March 5, 2013) – To perform in-depth analysis of their individual credit and debit card portfolios, three credit union clients of The Members Group (TMG) have engaged TMG data analytics partner IQR Consulting. NEFCU of Vermont, Elfcu (Eli Lilly Federal Credit Union) of Indiana and NorthCountry Federal Credit Union of Vermont have each signed on to have IQR’s data analysts review portfolio performance. IQR experts will then make actionable recommendations for portfolio growth based on each cooperative’s unique opportunities, member methodologies and strategic objectives.

TMG announced an equity investment in IQR in late 2012. “True data analysis requires a distinct expertise from professionals who have a deep understanding of math, statistics and predictive modeling,” said Todd Herren, TMG’s chief technology officer. “Not many community financial institutions employ that level of expertise; our aim is to bring it directly to them through our relationship with IQR.”

“The partnership between TMG and IQR is leveling the playing field,” said Pia Sachs Donerkiel, payment services supervisor for NEFCU. “We know large banks have been employing teams of statisticians and data experts for many years to target the right cardholders, at the right time, with the right offer. We’re excited to now be able to do the same.”

According to IQR Director Karan Bhalla, the process begins with IQR analysts reviewing the historical performance of a portfolio and sharing the trending of the credit union’s portfolios from multiple viewpoints. IQR then provides actionable recommendations to optimize and grow the portfolio. Working with IQR allows the credit union to focus on its core competencies while leveraging IQR for detailed analysis. The partnership also lets IQR clients look at their portfolios from a completely new perspective.

“The course of action or the ‘What next?’ is the real value of what we offer issuers,” said Bhalla, adding IQR uses advanced statistics and modeling techniques to provide the right products and offers to a credit union’s unique membership base. “We are providing our clients with measurable results they can use to apply to future actions, whether that’s a marketing promotion, a pricing adjustment or just a way to deepen their relationships with members.”

Among the outcomes IQR works to achieve is setting a financial institution up for continued success in the area of data organization, which ultimately makes the analysis stronger.

Although credit and debit card programs provide a great deal of data giving financial institutions valuable insights into their customers’ behavior, IQR does not stop with card programs. The analysis firm has competencies in many other areas of a financial institution’s operations and marketing programs, and works with credit unions and banks of all sizes.

Two free resources exist for card teams looking to learn more:

A new white paper titled “Data Analysis Points the Way Forward for Card Management Teams” is available at themembersgroup.com/prdataanalytics

About IQR Consulting
IQR Consulting is a leader in portfolio and financial analytics, reporting, statistical modeling and campaign management. The analysts at IQR are experts in the use of segmentation as a means for highly targeted marketing. With accurate and actionable insights and analysis, IQR helps credit unions, banks and casinos leverage data assets to increase profitability and to better compete against larger institutions. For more information, visit www.iqrdataanalytics.com.

About TMG
The Members Group (TMG) is dedicated to creating customized, technology-driven card processing and payment solutions for credit unions and community-based financial institutions across North America. Innovations in fraud management, loyalty programs, alternative payment systems and analytic reporting, and the competitive advantages they create, have helped TMG forge a new standard in offering cutting-edge credit, debit, ATM, prepaid card products and a P2P payment solution. For more information, visit www.themembersgroup.com.

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