DALLAS -- TNB Card Services, the card processing arm of credit union-owned Town North Bank, has announced that another CU has moved its card processing to the CUSO.
The $197 million State Employees Credit Union of New Mexico made the switch, TNB said, citing the need to grow its credit card portfolio and enhance its pricing structure. With limited marketing options from its previous processor and the inability to offer risk-based pricing, State Employees CU was looking for a processing partner that could bring energy and marketing expertise to its program to fuel card growth, TNB said.
"Unfortunately, our card program became flat, so we made the decision to invest in it, which meant changing card processors," said Harold Dixon, CEO of the $200 million credit union. "We looked at a number of processors, and TNB stood out because of its credit card expertise and credit union ownership."
TNB will conduct a thorough analysis of the portfolio, Dixon noted, to help State Employees CU establish a marketing strategy and a plan to drive card usage and growth. TNB will analyze all facets of the card program, including pricing, marketing and rewards.
Dixon added that the credit union considered selling its portfolio but decided that with the right processor, pricing and promotion, it could grow the portfolio without having to give up ownership. The move brings TNB 1,300 accounts, according to NCUA's data.