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TNB Card Services Promotion Nets Big Gains for NJ Credit Union

Dallas, June 15, 2009 - First Financial Federal Credit Union of New Jersey turned a stagnant card program into a highly prized product, even in the midst of a collapsing economy, thanks to the expertise of TNB Card Services. TNB, a leading provider of electronic payment services for credit unions, announced today just how successful the turnaround has been for First Financial.

In 2006, First Financial saw its $12 million card program languishing at least in part because of the limitations of its former card processing platform when it came to card promotions. The $161 million credit union moved more than 5,400 card accounts to TNB Card Services just as the economy was beginning to head downhill. 

After a thorough analysis of First Financial's card portfolio, TNB developed and recommended a revitalization plan, with strategies designed to increase usage and drive interchange income, a key goal for the credit union. TNB helped First Financial modify its credit policy to strengthen its underwriting capabilities. This allowed First Financial to evaluate cardholders on an individual basis, rewarding high value cardholders with lower rates and better products, and improving its risk management capabilities.

First Financial introduced a Platinum card to attract new cardholders, along with TNB's Rewards2U® loyalty program. Within 24 months of introducing the Platinum card, First Financial grew its active cardholder base 27 percent, to nearly 7,000 card accounts.

"The Platinum card brought new life to our card portfolio," said Alice Stevens, First Financial FCU's chief operating officer. "Our members took notice and responded by applying for the card and by using it. Since introducing the Platinum card in 2008, average net retail sales have grown five percent and net income is up seven percent."

First Financial also began aggressive marketing to make its card the first choice for cardholders. In 2008, it executed more than a dozen of TNB's turnkey marketing campaigns, yielding more than $3 million in outstanding balances. This brought the total balances outstanding to more than $17 million, a 39 percent growth since its 2006 conversion to TNB.

Leveraging members' concern about credit card APRs, First Financial took advantage of TNB's life of balance (LOB) transfer promotion. Cardholders could transfer balances from high-interest accounts to the First Financial card at rates from 3.9 to 5.9 percent. Two separate LOB balance promotions generated more than $1 million in new card balances, and the flexibility of TNB's processing platform allowed First Financial to extend the LOB rate to transfers by new cardholders as well.

Cross-selling First Financial's credit card has been a key to the turnaround. "We put a lot of emphasis on our cards," said Stevens. "Our loan origination system automatically approves cards for members who come in for other types of loans. Employees are encouraged to cross-sell our card when members are applying for other loans. We are very aggressive about getting cards into members' hands."

Stevens added that First Financial provides incentives for employees to encourage cardholders to transfer balances to the credit union's card.

"The LOB rate, along with TNB's other marketing promotions have really strengthened our portfolio," Stevens pointed out. "Without the promotions and expert counsel we receive, our card program would not be as strong as it is today. Before TNB our card portfolio was withering, and TNB resuscitated the program."

About TNB Card Services
TNB Card Services, owned and directed by credit unions since 1976, provides electronic payments processing for credit unions nationwide. Serving more than 550 financial institutions of all sizes and managing more than 2 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 Mark Fenner at 1-800-422-0733 ext. 6655.