DES MOINES, Iowa–A credit card portfolio can be a community financial institution’s most profitable product, generating up to a quarter of a credit union’s net income.
But that potential is often overlooked, according to Jennifer Davis, portfolio management executive for TMG (The Members Group), who has authored a new 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, the white paper suggests.
“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.
The white paper includes case studies involving two credit unions–Financial Plus Credit Union and SAC Federal Credit Union–each of which gained eye-opening insights from credit card portfolio reviews.
The white paper can be found at: themembersgroup.com/credit.