SEATTLE — The $7.6 billion BECU, formerly Boeing Employees Credit Union, is celebrating almost doubling its credit card portfolio's outstanding balances in fewer than two years, according to the CU and PSCU Financial Services, the payment processing CUSO that helped the CU make the change.
In 2005 the then $6.14 billion CU evaluated its card portfolio and found it flat and uninspiring to its members, according to PSCU and the credit union. The CU then set a goal of increasing its portfolio balances from $268 million to $500 million, almost a doubling and the now $7.6 billion CU has seen its card portfolio increase to $430 million in balances.
"We had a plain vanilla credit card portfolio and growth had been flat for years. Doubling our portfolio in 28 months seemed like quite a stretch," said BECU Credit Card Product Manager Nancy Davis.
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She attributed the credit union's success to hard work and strategically-driven promotions. BECU converted its credit servicing to PSCU Financial Services in September 2005 and retained the CUSO's card portfolio consulting services. Davis said the knowledge and experience of the consulting service played an integral role in our success. "They worked with us to design effective promotions and target the cardholders who are most likely to respond. In addition, their analysis and reporting is much more detailed than we would be able to accomplish on our own," she said.
BECU conducts three annual promotions: a post-holiday balance transfer with transaction level processing (TLP) for the convenience check mailing; a summer pre-approval offer with a promotional interest rate that uses TLP and a fall credit line increase that includes convenience checks.
The credit union's most recent balance transfer offer netted $25.1 million in transfers with a 8.44% response rate, while its summer acquisition campaign brought in $9 million and a 2.75% response rate, adds BECU Senior Product Manager Bob Stroup.
"Within the credit union, we have an excellent staff that is very experienced," explains Stroup but added that the expertise the consultants brought
gave the CU an edge it didn't have before.
"This impressive achievement demonstrates the power of partnership," said David J. Serlo, President and CEO, PSCU Financial Services. "BECU was fully committing to investing in its credit portfolio and our representatives provided valuable industry knowledge to maximize their efforts and help them achieve their goals."
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