Card Issuers Sending Out Less Direct Mail Offers, Firm Says

CHICAGO --A market research firm called Synovate says that credit card issuers will send out a bit less mail in 2007 than they did in 2006.

In its most recent Mail Monitor, a service which tracks credit card direct mail advertising, the full year projection shows a slight decrease from the 5.76 billion offers received in 2006, which was also down from the all time high of 6.05 billion card offers received in 2005. As a result of the decreased volume for 2007, Synovate predicts response rates will edge up slightly to 0.6% from 0.5%, representing some 32 million applications for new credit cards.

"Trends in credit card direct mail volume tend to be cyclical," said Andrew Davidson, vice president of competitive tracking services for Synovate's US Financial Services Group. "Every few years we see a dip in volume driven either by industry consolidation or economic pressures," he said, referring to previous volume dips in 1999, 2002 to 2003 and 2006.

Davidson indicated that the 2007 dip is a continuation from 2006, and mainly due to the Bank of America/MBNA merger. "Bank of America mail volume is up versus last year but still below pre-merger levels," said Davidson. The decrease is also due to Chase and Capital One which, while still mailing huge volumes, have scaled back and diverted some of their marketing efforts to other channels such as TV advertising and the Internet.

PSCU Online Bill Payment Passes Milestone

ST. PETERSBURG, Fla. -- PSCU Financial Services has surpassed a milestone with its Paylinx online bill payment service.

The CUSO that provides a variety of payment services to more than 500 credit unions announced that it has exceeded 500,000 subscribers, and 2.6 million bill payments per month, on Paylinx. As one of the credit union industry's leading providers of this service, the cooperative was the first to offer FraudNet, a bill payment fraud detection and prevention tool and has developed innovative marketing materials that include an online video designed to build consumer acceptance, the CUSO added.

"We have added an impressive 100,000 subscribers over the past 12 months due to product enhancements, innovative marketing tools and our dedicated team of skilled advisors," said David Serlo, CEO of PSCU. "Our online bill payment solution addresses user needs with same day/next day payments, a single landing page with biller history and other time-saving features."

Noted CU Executive Joins CU 24

TALLAHASEE, Fla. -- Jim Gowan, well-known to credit unions and former executive with CUNA Mutual Group, has joined Credit Union 24 as executive vice president of administration and strategic planning, the credit union owned ATM and EFT network announced last week.

"I'm very pleased to join Credit Union 24," said Jim Gowan. "The network is a true cooperative, and reflects the same ideals I've been working to promote all my professional life. As a credit union-owned organization, Credit Union 24 has a real opportunity to advance the credit union movement, and ensure that credit unions control their future in the growing point of sale marketplace."

Gowan is highly respected throughout the credit union system for his years of dedication to the movement, and will draw upon his considerable experience to help Credit Union 24 prepare for the years ahead. Jim joins Credit Union 24's senior leadership team, and will be closely involved in assessing and planning for the evolving needs of credit unions.

"Adding Jim Gowan to our leadership team is undeniably in the best interests of our network cooperative," said Jim Park, CU24's president and CEO. "Jim's clear strategic vision and longtime support for our credit union principles will not only strengthen our organization, but will also benefit our credit union owners."

Texas CU Brings All Card Processing to TNB

DALLAS -- TNB Card Services, the card processing subsidiary of credit union Town North Bank, suggested last week card processors stand to benefit from a trend where credit unions opt to have one processor for all their card transactions.

The $189 million Texas Bay Area Credit Union has decided to consolidate its debit and credit card processing with one firm, adopting an increasingly popular strategy among CUs, TNB said.

"We looked at the big picture and asked ourselves if it made sense to have one company driving one part of the program and someone else driving the other," said Paul Withey, chief marketing officer for Texas Bay Area CU. "We believed we could gain efficiency by having the entire card program with one processor, and it made sense that TNB would have the whole portfolio," Withey added.

Withey said the credit union already has a strong strategic alliance with TNB. Texas Bay Area CU has been a client of TNB since 1975. The signature debit program is currently with TNB and the credit union uses TNB's Rewards2U(R) program for credit and debit cards. Syed Dinar, vice president and chief financial officer, pointed out that TNB's affiliation with the STAR network was another big plus.

"On their own, they saw the value of a strategic alliance with a single processor. Not only will they improve the efficiency of their card processing, the cardholders will also be better protected from fraud," said Dusty Bowers, senior vice president of TNB Card Services.