The NAFCU Journal November-December 2019 - 20

and high charge-offs," Fuerstenau says.
But the bottom line speaks for itself, she
says, with interchange fees and interest
income on high volume - 115,000 credit
card transactions a month, generating
$9.2 million in revenue in 2018.
Credit unions are positioned to leverage
the power of local support and relationships, says Mastercard's Yasemin Bedir,
executive vice president of community
institutions and processors for North
American Markets. Rewards remain
consumers' top reason for choosing a card,
Bedir says, but Mastercard's analytics show
the second most common reason a card is
chosen is its discounts and offers that are
local and relevant to the cardholder.

Member voices drive many credit card
initiatives. After Southern Californiabased First Financial Credit Union
sold its credit card portfolio in the late
1990s, member surveys revealed that
"members wanted a credit card with us.
We designed a Platinum Visa that is a
great relationship product. It is simple
- vanilla offerings - but that is what
members wanted," says First Financial
President/CEO Carlton Musmann.
The credit union responded, but with a
kind of gourmet "vanilla bean" tailored
to the membership field of educators -
a low-, fixed-rate card with no foreign
transaction fees, free overdraft source,
discounts on auto loans and skipped
payments allowed. 
"You don't need to offer everything and
the moon," says Musmann. "Members

''

just want a good, differentiated product
to help them manage their funds."
At Michigan-based American 1 Credit
Union, credit cards constitute a "very
strategic" 27 percent of offerings, says
President and CEO Martha Fuerstenau.
Branches issue the low-rate, no-fee card
instantly. Cardholders can direct donations toward favored charities. And they
can choose from more than 100 images
to customize their card, because "when
you select a personal image for your card,
you're more likely to pull that card out,"
Fuerstenau says.
In the early 2000s, American 1 decided
that loan officers would propose a credit
card loan with every auto loan. The risky
approach sparked "very difficult discussions" with regulators, and the credit
union had to "tolerate high delinquency

The majority of people, if
they're creditworthy, are going
to have a credit card. So why
not ours?

''

- TONY HALE, PRESIDENT/CEO, TEXELL CREDIT UNION

20

"Cards will move beyond one-size-fits-all
rewards," Bedir says. "In the coming years,
we expect that relevant benefits, a deeper
understanding of community needs and
local offers will make more sense. Also,
a seamless user experience will become
even more important."

STOKING ENGAGEMENT

Credit cards do more than beef up the
bottom line. They also promote growth
and member engagement.

Texell's Hale says member relationships
that "go beyond the logo on the plastic in their wallet" contribute to a low
delinquency rate. Every swipe of the
card, measured by metrics, drives up
engagement and cements Texell in the
consumer's mind as their bank, which
makes them the first choice for auto
loans, mortgages and accounts.
"We're not asking for monogamy, but
we want to be the No. 1 spot," says
Hale. "If we're losing engagement, it
makes us ask where the gaps are in
our products and services."
The complexity of processing and the
volume of transactions mean that there
will be occasional issues, says Fuerstenau.
American 1's extensive training turns
service personnel, all local, into experts
at unraveling and resolving those issues,
which makes a lasting impression.

THE NAFCU JOURNAL NOVEMBER-DECEMBER 2019



The NAFCU Journal November-December 2019

Table of Contents for the Digital Edition of The NAFCU Journal November-December 2019

The NAFCU Journal November-December 2019
Contents
Conferences
From the Chair
Washington and Industry Briefs
The Bottom Line
Welcome, New Members
Leading the Charge
Test for Success
Test for Success
Executive Spotlight
Management Insight
Compliance Central
Inside NAFCU Services
From the President’s Desk
The NAFCU Journal November-December 2019 - The NAFCU Journal November-December 2019
The NAFCU Journal November-December 2019 - Cover2
The NAFCU Journal November-December 2019 - Contents
The NAFCU Journal November-December 2019 - 2
The NAFCU Journal November-December 2019 - Conferences
The NAFCU Journal November-December 2019 - From the Chair
The NAFCU Journal November-December 2019 - 5
The NAFCU Journal November-December 2019 - Washington and Industry Briefs
The NAFCU Journal November-December 2019 - 7
The NAFCU Journal November-December 2019 - The Bottom Line
The NAFCU Journal November-December 2019 - 9
The NAFCU Journal November-December 2019 - 10
The NAFCU Journal November-December 2019 - 11
The NAFCU Journal November-December 2019 - 12
The NAFCU Journal November-December 2019 - Welcome, New Members
The NAFCU Journal November-December 2019 - 14
The NAFCU Journal November-December 2019 - 15
The NAFCU Journal November-December 2019 - 16
The NAFCU Journal November-December 2019 - 17
The NAFCU Journal November-December 2019 - Leading the Charge
The NAFCU Journal November-December 2019 - 19
The NAFCU Journal November-December 2019 - 20
The NAFCU Journal November-December 2019 - 21
The NAFCU Journal November-December 2019 - 22
The NAFCU Journal November-December 2019 - 23
The NAFCU Journal November-December 2019 - 24
The NAFCU Journal November-December 2019 - 25
The NAFCU Journal November-December 2019 - Test for Success
The NAFCU Journal November-December 2019 - 27
The NAFCU Journal November-December 2019 - 28
The NAFCU Journal November-December 2019 - 29
The NAFCU Journal November-December 2019 - 30
The NAFCU Journal November-December 2019 - 31
The NAFCU Journal November-December 2019 - Test for Success
The NAFCU Journal November-December 2019 - 33
The NAFCU Journal November-December 2019 - 34
The NAFCU Journal November-December 2019 - 35
The NAFCU Journal November-December 2019 - 36
The NAFCU Journal November-December 2019 - 37
The NAFCU Journal November-December 2019 - 38
The NAFCU Journal November-December 2019 - 39
The NAFCU Journal November-December 2019 - Executive Spotlight
The NAFCU Journal November-December 2019 - 41
The NAFCU Journal November-December 2019 - Management Insight
The NAFCU Journal November-December 2019 - 43
The NAFCU Journal November-December 2019 - Compliance Central
The NAFCU Journal November-December 2019 - 45
The NAFCU Journal November-December 2019 - Inside NAFCU Services
The NAFCU Journal November-December 2019 - 47
The NAFCU Journal November-December 2019 - From the President’s Desk
The NAFCU Journal November-December 2019 - Cover3
The NAFCU Journal November-December 2019 - Cover4
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