ST. PETERSBURG, Fla.-Credit unions that manage their exposure as they expand their card base may benefit significantly, according to Glenn Schechter, director of credit services for the St. Petersburg, Fla.-based PSCU Financial Services.
Schechter pointed out a nearby, Tampa Bay-area CU that has been gaining 1,000 members a week from the big banks. "People are joining because they're frightened of the traditional banks or they have been adversely affected by a tightening of credit lines."
To help credit unions target the right opportunities, PSCU is currently rewriting the scorecard and risk matrices for its Adaptive Control risk management tool to reflect current market conditions. "It allows credit unions to manage line assignment safely and determine re-issue assignments," Schechter said. "We are working with outside organizations, such as Fair Isaac, to help us see at a macro level what's occurring."
Schechter explained that improved risk management tools are needed today as CUs must refine card portfolio marketing strategies down to "a segment of one. So you can target those cardholders with an appropriate offer at the appropriate level of risk."
