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For Immediate Release
Contact:
Jan Dailey, SVP, Marketing Manager
972-391-6191, jan.dailey@tnbcard.com
Kristine Tanzillo, Dux Public Relations
972-889-9577, kristine@duxpr.com
TNB CARD SERVICES CONFERENCE
HIGHLIGHTS
CREDIT CARDS AS MOST PROFITABLE CREDIT UNION PRODUCT
DALLAS - October 24, 2006 - Marking 30
years in the payments industry, TNB Card Services
achieved a record level of attendance, with
representatives from some 100 credit unions from
around the country, at its 2006 Payments Conference
in Frisco, Texas. The conference focused on the
trends, challenges, and opportunities in today's
payments landscape.
A recurring theme throughout the October 11-13
conference was the changing competitive environment
and growth opportunities for credit unions in the
debit and credit card space. As Scott Wagner,
executive vice president of TNB Card Services,
noted, "Credit card programs are one of the
most profitable products in a credit union's
portfolio, despite fraud concerns. Debit cards are
also a key building block in the relationship
between a credit union and its members. Debit and
credit cards will only grow in importance to credit
unions' members as electronic payments continue to
expand."
Renée Mauborgne, co-author of the international
business bestseller "Blue Ocean Strategy: How
to Create Uncontested Market Space and Make the
Competition Irrelevant," keynoted the
conference. Mauborgne addressed the conventional
boundaries of competition and the six paths credit
unions can take to reconstruct their market.
Chip Filson, president of Callahan &
Associates, echoed several of Mauborgne's key
points. He said, "Credit unions cannot become
the competition to beat the competition. Credit
unions must differentiate with values, innovate for
value, and leverage their cooperative
potential."
Gift cards represent an ideal opportunity for
credit unions to access the "unbanked,"
according to Tower Group's senior research analyst,
Dennis Moroney. "Gift cards can be used to tap
consumers that do not have a relationship with a
financial institution, such as underserved markets.
Gift cards also provide a service and build loyalty
among non-traditional customers."
Loyalty and rewards were key topics of discussion at
the conference. According to Jeff Rankin of VISA
USA, cards that offer rewards are growing at nearly
10 percent annually, offering significant
opportunities for credit unions to increase usage of
cards and increase card penetration among the
membership.
The method in which electronic payments are being
initiated is also changing. Maureen Maddox of
MasterCard discussed how cell phones and other
handheld devices are driving payment trends. Cards
are evolving into new forms, which is expanding
payment options and applications for electronic
payments.
Attendees benefited from numerous breakout
sessions, which included discussions about fraud,
rewards programs, compliance, card marketing,
cross-selling, and the pros and cons of selling a
card portfolio.
"This event showcased the strategic
importance of card programs for credit unions,"
said TNB's Wagner. "Credit unions must treat
their card programs as growth products and manage
them accordingly. Whether credit unions oversee
their own programs or work with an external source,
such as TNB, they should select a partner that has
the service, expertise, and capabilities to deliver
results."
-t-t-
About TNB Card Services
TNB Card Services, owned and directed by credit
unions since 1976, provides electronic payments
processing, as well as an agent issuing solution for
credit unions nationwide. Serving more than 450
financial institutions and managing more than 1.6
million cards, Dallas-based TNB enables credit
unions to enhance member loyalty through credit
union-branded card products. For more information
about TNB, go to www.tnbcard.com or call
1-888-742-0260.
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