TMG Financial Services Continues To See Portfolio Growth
DES MOINES, Iowa – TMG Financial Services (TMGFS) said it experienced credit card portfolio growth last year, both organically and through portfolio purchases.
In addition to acquiring credit card portfolios from Community 1st Credit Union and Jersey Shore Federal Credit Union, TMGFS saw 9.5% growth in balances through the third quarter compared to the previous year. The company said its balance growth is “well above the credit union industry average of 4.2%, as well as the overall credit card industry, which saw double digit losses in balances.”
“Coming into 2010, we knew portfolio sales would be down from the previous year due to the uncertainty of the CARD Act, yet we also could see there was potential to grow our portfolio as consumers were seeking alternatives to big bank issuers, ” said Jeff Russell, president and CEO of TMGFS.
In 2010, TMGFS doubled the number of new accounts generated, results it attributed to a successful acquisition direct mail campaign. TMGFS ended the year with $118 million in assets and more than 50,000 accounts under management.
Despite consumers deleveraging their outstanding credit, Russell said he expects the TMGFS portfolio to continue to produce above industry average growth in both new accounts and balances. “When we started the company, we knew we’d have to have strong organic growth and not just rely on credit card portfolio acquisitions,” Russell said. “We have created, and continue to expand upon, a credit card product that is truly member-friendly. It is a message that continues to resonate with credit unions across the country.”
TMG Financial Services is a credit card agent-issuing company for both credit unions and cardholders. TMG Financial Services is a sister company to The Members Group, a provider of credit, debit, ATM and prepaid processing solutions.