October 1, 2009
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CU CCs Doin' Fine
In these days where the rest of the credit card industry is crumbling, there stands, perhaps, only one entity which is enjoying greater success. That would be the credit union credit card department. Because their primary drive is not capitalistic maximized profits, they have found the greatest in pleasing customers. Referred to as an "external" in corporate terminology, this method of success in indirect. The rewards are neither immediate nor extracted using coercion. Over time, as Bill Gates well understood, you can build a loyal following from grass roots customers who will embrace the fact that a company doesn't take advantage of the customer "just because they can". Most certainly, credit union members are not immune to the extreme financial conditions strangling main street brought on by the Bush Administration's neglect of regulation in the banking industry, credit card or otherwise.
Fortunately, credit unions were not predisposed to supplant financial security by doing what the counterpart mainline banks were doing. The resulting reward for credit union credit card holders is that they are happy with the service and remain loyal. They still use their credit cards avidly but responsibly.
Noted credit union credit card processor, TNB Card Services, attests that just for it's credit union accounts who sought the processors marketing assistance reeled in over $11 million. As the CUs prospered, they were able to issue new credit card accounts by the hundreds.
One particular niche that's working especially good right now is helping members escape the tyranny of the private competition who have jacked existing interest rates through the ceiling just "because they could". By offering the escape route of transferring balances away from those tyrants into new, low-rate credit card accounts, a single credit union in Texas (FWCCU) was able to amass $770,000 in new balances. Way to go, credit unions!