Neighbors Credit Union Boosts Credit OutstandingsCU Implemented CURewardsT, Account Level Processing from PSCU Financial ServicesSt. Petersburg, FL, April 9, 2007 – Neighbors Credit Union of St. Louis, Mo., boosted its outstanding credit balances by almost $2 million after implementing a rewards program and specialized processing tools from PSCU Financial Services, the nation’s largest credit union service organization (CUSO). Neighbors CU’s credit balances jumped 23 percent, from $8.6 million to $10.5 million in 2006. The credit union implemented CURewards™ and converted most of its Classic and Gold VISA accounts to Platinum. It applied Account Level Processing from PSCU Financial Services to automatically adjust pricing according to each cardholder’s credit score, delinquency history and other account activities. This allows the credit union to reward its lowest risk cardholders with an interest rate of 7.95 percent, while applying higher interest rates to cardholders with greater risk. “While we have witnessed the trend for credit unions to sell their credit portfolios, we believe that credit cards are a fundamental building block in attracting and retaining members,” said Larry Giesing, CEO of Neighbors Credit Union. “Our experience validates what PSCU Financial Services has been saying for years: adding a popular rewards program and offering employee incentives does generate immediate and significant returns for a credit card portfolio.” A series of employee promotions have added 149 new cardholders and $60,500 in balance transfers in the first quarter of 2007. The credit union has found that combining rewards points with employee incentives for balance transfers and account acquisitions drives increased results. The credit union is also using PSCU Financial Services’ Adaptive Control System (ACS) to automate credit line increases and handle reissues. ACS applies an analytical model to evaluate cardholder accounts and reflect positive and negative changes in an account. “We are extremely pleased that Neighbors Credit Union is reaping the rewards of investing in its credit card portfolio. We believe that credit union industry can substantially build its share of the credit market by offering a rewards program along with member and employee promotions,” said David J. Serlo, president, PSCU Financial Services. About Neighbors Credit UnionNeighbors Credit Union has $175 million in assets and 36,000 members. It was originally founded as St. Louis Postal Credit Union but has undergone a name change that reflects its wider membership base in the community that includes numerous St. Louis area employers and residents of selected zip codes. For more information, visit www.neighborscu.org.About PSCU Financial ServicesAs a non-profit cooperative, PSCU Financial Services is owned by more than 500 member credit unions representing over 10 million cardholder accounts and more than 400,000 online bill payment subscribers. Its Contact Center services more than 10 million inquiries a year. PSCU Financial Services maintains its headquarters and Eastern operations center in St. Petersburg, Florida. The company is also supported by a West Coast operations center based in Phoenix, Arizona. PSCU Financial Services is the nation's largest Credit Union Service Organization (CUSO). Established in 1977, the company provides a broad array of cost-effective, high quality financial services that include credit, debit, ATM, prepaids, bill payment, lending and contact center solutions. PSCU Financial Services uniquely offers its members a full range of processing options, any combination from full service to in-house pass through processing for credit, debit and ATM transactions. As the leader in the credit union industry, the company offers gateway access to national and regional networks. It also provides full function ATM terminal driving services. For more information, visit the company's Web site at www.pscufs.com.Top
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