BROOKFIELD, Wis.-Member education and card rewards are two areas that mean a lot to the credit union bottom line in 2010, according to Fiserv.
Scott Butler, president, Credit Union Solutions at Fiserv, stressed that member education is crucial to successfully navigate the Reg E changes and protect an important revenue stream. "Credit unions must proactively reach out to their members to drive opt-in rates. Fiserv is helping them do that."
Butler noted Fiserv is offering a program that includes a segmentation seminar that provides insight on how to design an opt-in campaign that produces results, along with an online member education website. "For those that seek additional support in driving their opt-in programs, we're providing more personalized consulting, along with options for the production and distribution of educational mailings as well as full-scale campaign support, including outbound calling," Butler said.
Regardless of how credit unions and members respond to the regulatory change, Butler stated that the non-interest income picture will be in flux and credit unions will need to adjust their strategies accordingly. With all of the business that's come over from banks, Butler recommended card rewards programs to generate new revenue streams and build new relationships. "Research shows that card portfolios tied to rewards enjoy 15% higher activation rates, and members who hold reward-based cards spend 40% more than those who don't."
