More evidence has appeared showing that credit unions are bucking the national trend of shrinking credit lines and diminishing use of credit cards.
TNB Card Services, the card processing arm of credit union owned Town North Bank, reports a year over year increase in the number of credit card accounts of 30% among its client credit unions. The card processor also reported an 8% increase in outstanding card balances.
"In many ways, the Credit CARD Act has given credit unions an unprecedented opportunity to change the credit card landscape and gain wallet share," said Mark Fenner, senior vice president, TNB Card Services. "Consumers are turning to credit unions because of their relationship philosophy and member-friendly card policies, which is gaining widespread media attention due to the predatory lending practices of many national financial institutions."
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Fenner added, "Credit unions are relying on our expertise to help them capitalize on their branch investments and employees in order to grow their card portfolios."
As an example, MCT Credit Union of Port Neches, Texas, has added more than 300 new cardholders since January 2009 by implementing an in-branch card strategy developed by TNB. "For the past two years we averaged eight new card accounts a month. Since we rolled out our in-branch card effort, which included in-depth employee training and an incentive program, we are now averaging 38 new card accounts per month," said Sandra Duvall, marketing director for MCT.
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