TMG white paper shares strategies for a profitable credit card program
DES MOINES, IA (October 1, 2015) — A credit card portfolio can be a community financial institution’s most profitable product, generating up to a quarter of a credit union or community bank’s net income. According to Jennifer Davis, portfolio management executive for TMG (The Members Group), this potential is too often overlooked. To inspire change, she has written a white paper explaining how even small tweaks to a credit card portfolio can produce big results.
An important first step to producing those big results is to gain an understanding of goal metrics for a profitable portfolio; next, cards teams must make a plan for monitoring those metrics.
“With a strategic ear to the ground, cards teams can easily uncover otherwise illusive information and capitalize on the untapped potential of their most lucrative asset,” Davis writes.
In addition to goal metrics, Davis’ paper includes discussion of the five stages of the cardholder lifecycle and strategies for optimizing the consumer experience within each.
Lastly, Davis tells the story of two credit unions – Financial Plus Credit Union and SAC Federal Credit Union – each of which gained eye-opening insights from credit card portfolio reviews.
“I would recommend every [financial institution] take the opportunity to undergo a performance review,” said Dave Cale, president and CEO of Financial Plus Credit Union. “It’s a valuable process to either confirm you are headed in the right direction or to make adjustments. It has certainly helped us reignite a dormant product, giving us the opportunity to deliver more value to our cardholders and equity to all members.”
To download the white paper, “Getting the Most out of Your Credit Card Program,” visit themembersgroup.com/credit.
About TMG
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.tmg.global.
