TMG Financial Services releases white paper on innovative investment model for credit union lenders
DES MOINES, IA (March 7, 2017) — A rich history of collaboration and innovation is behind many of the creative strategies credit unions are executing today. According to Benjamin Rempe, vice president of business development for TMG Financial Services (TMGFS), the movement’s support of his CUSO’s Collateralized Advance Program (CAP) is a prime example of that creativity.
Now 10 years old, the CAP offers credit unions the opportunity to invest in the TMGFS credit card portfolio in exchange for competitive yields based on soundly underwritten assets. With funding from CAP, TMGFS purchases credit card receivables while collaborating with the seller to maintain a healthy, sustainable and cardmember-friendly program.
“Credit unions have long subscribed to the idea that the best risk management is sound underwriting,” Rempe writes in a white paper outlining the program. “That is why a majority of the portfolio owned by TMGFS is considered ‘high-quality.’ Accounts have reasonable credit lines, and the average cardmember has a FICO score of 732. The CAP offering is a unique opportunity for credit unions looking for a values-centric, high-quality, sound investment.”
Today’s CAP is supported by more than 60 credit unions that have contributed more than $200 million. Those funds contribute to the ongoing health and sustainability of more than 120,000 cardmember accounts. With funding from CAP, TMGFS purchases credit card receivables while collaborating with the seller to maintain a healthy, sustainable and cardmember-friendly program. CAP investors receive competitive yields based on soundly underwritten assets.
Financial Plus Credit Union is among the lenders currently participating in the program. “We have invested excess funds with TMG Financial Services’ CAP for many years as an alternate to traditional investment vehicles,” said Financial Plus President and CEO Dave Cale. “The CAP has proven to be safe, convenient and have terms that easily fit our investment schedule.”
Download the white paper “CAP: Innovative Investment Model for Consumer-Centric Organizations” on tmgfinancialservices.com.
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.
