TMG Develops Cardholder Profitability Tool for Credit Card-Issuing Clients
April 9, 2010
(Des Moines, Iowa – April 9, 2010) – In response to client demand, TMG (The Members Group) has developed a data tool for examining the revenue a financial institution earns from each individual account in its credit card portfolio.
The TMG Cardholder Profitability Data File is available monthly and includes detailed income information to help credit card portfolio managers determine the actual revenue earned from a cardholder’s monthly activity.
Data fields include late fees, foreign fees, transaction totals, current balance and interest billed.
“You can never have too many attributes when examining a cardholder file,” said TMG client Bonnie Fannin, AVP, Credit Cards, at Orange County’s Credit Union, who notes that her reliance on this data is part of a credit union-wide initiative to better assess profitability on a member level. “Profitability is one attribute among others that will help us in selecting our target audience for a variety of marketing programs.”
TMG anticipates its Cardholder Profitability Data File will accelerate evaluation of individual cardholder requests, such as credit line increases and pay-off schedules, ultimately resulting in a more satisfied cardholder. The data also promises to help managers better predict the profitability of card portfolio upgrades, such as rewards programs, as well as to assess the success of recent marketing initiatives.
“Cardholder-level reports are becoming increasingly important for credit card issuers who face complex decisions in the new Credit CARD Act environment,” said Cindy Tannatt, TMG’s director of client services.
Having recently eliminated overlimit fees and default pricing due to challenges created by the Credit CARD Act, Fannin sees potential for this data to shed light on decisions made inside a changing regulatory environment.
“By assigning profit numbers to cardholder accounts, we would be better able to model the profitability outcomes of eliminating or assessing fees,” she said.
About TMG
TMG is a wholly-owned subsidiary of the Affiliates Management Company, which is owned by Iowa credit unions and their members. As a financial and credit union service organization (CUSO), TMG is dedicated to providing innovative and flexible card processing and payment solutions to credit unions and financial institutions across North America. TMG’s core products include credit, debit, ATM and a variety of prepaid solutions, as well as online reporting, item processing, ACH and ALM services. TMG’s prepaid card products are branded ATIRA. For more information, visit www.TheMembersGroup.com.
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For More Information:
Kelly Moore or Desiree Fletcher-Hayes (for TMG)
515-720-9670
pr@themembersgroup.com
