The large number of credit card providers in the market today leads many credit unions to assume that growing a strong credit card portfolio is near impossible. The top performer saw growth upwards of 50.35 percent, while the credit union industry grew credit card loans on average only 2.59 percent. Below is a table of the top 10 credit unions by credit card growth.
Bull’s Eye Credit Union in Wisconsin leads the pack having the largest growth, but also shows an impressive 37.96 percent of credit card penetration. The institution was able to grow its credit card portfolio from roughly $5.9 million to $9.8 million in 18 months a 66.10 percent increase! Bull’s Eye had explored the option of selling its portfolio very seriously.
We were just about to sign the dotted line, then we thought let’s give it one last shot,says CEO David Stark. The credit union got their members involved and asked their opinions in a survey. Using the member responses Bull’sEye set out to grow their credit card portfolio.
An overwhelming number of members suggested a lower rate and after a lot of consideration Bull’s Eye executives decided to lower the rates on their cards. They hoped this would increase credit card balances and encourage members to transfer existing balances on other cards.
By offering a more competitive rate and engaging in a large direct mailing campaign, the credit union saw tremendous member response. Volumes generated from the aggressive promotion had employees transferring balances from other institutions by hand.For their efforts, enthusiastic employees were rewarded with steak dinners.
| Top 10 Credit Unions in Credit Card Growth $ Credit Card % of Members $ Avg CC Total | ||||||
| Rank | Credit Union | ST | $ Credit Card Loan Growth |
% of Members w/ Credit Card |
$ Avg CCBalance | Total Assets |
| 1 | BULL’S EYE | WI | 50.35% | 37.96% | $1,202 | $89,919,068 |
| 2 | HAMILTON COUNTY SCHOOL EMPLOYEES | OH | 33.30% | 51.15% | $2,025 | $21,190,564 |
| 3 | FRANKENMUTH | MI | 29.66% | 35.42% | $1,204 | $101,386,505 |
| 4 | DOWNRIVER SCHOOL EMPLOYEES | MI | 28.90% | 35.67% | $1,384 | $59,319,216 |
| 5 | MIAMI POLICE | FL | 26.35% | 44.18% | $1,546 | $40,365,043 |
| 6 | NAPUS | VA | 23.52% | 60.56% | $1,345 | $185,890,451 |
| 7 | UNITED NATIONS | NY | 21.56% | 39.84% | $2,427 | $2,004,378,297 |
| 8 | ORANGE COUNTY TEACHERS | CA | 17.91% | 43.18% | $1,354 | $4,952,417,423 |
| 9 | ANTIOCH SCHOOLS | CA | 16.86% | 54.34% | $1,017 | $26,814,034 |
| 10 | CHRISTIAN COMMUNITY | CA | 16.10% | 44.17% | $1,846 | $368,442,512 |
| Industry Average | 2.59% | 14.77% | $1,703 | $69,055,856 |
Learn how Bull’s Eye and other credit unions are managing strong credit card portfolios on the Credit Card Portfolio webcast.
Bull’s Eye Credit Union homepage (www.becu.net)
