HAPO Community CU Doubles Outstandings

Credit Union Works with PSCU Financial Services to Boost Activation, Usage Rates

St. Petersburg, FL, May 16, 2006 – HAPO Community Credit Union, Richland, Wash., achieved dramatic results from investing in its credit card portfolio by almost doubling outstanding balances over a two-year period through a series of promotions and innovative employee incentives.

“Credit union officers considered selling our credit card portfolio but decided instead to invest in it. Everyone agrees that it was an excellent decision, as evidenced by the impressive return on that investment,” said Michelle Stewart, the credit union’s Visa Marketing Specialist. Stewart was hired to drive increased acquisition and usage rates for the credit union’s Classic and Platinum VISA credit cards.

The credit union nearly doubled its outstanding credit balances from Jan. 1, 2004 to Jan. 1, 2006. The credit union’s most recent promotion offered double CURewards™ points for sales or balance transfers from Feb. 1, 2006 to April 30, 2006. It netted an additional $127,000 in outstanding balances. The credit union also worked with AdvisorsPlus™ specialists from PSCU Financial Services to offer credit line increases to qualified Classic and Platinum cardholders. That offer generated an average increase in balances of $110 per month per cardholder, for a total monthly average of $344,729 in additional balances.

Employee incentive programs also played a major role in the growth of the credit card portfolio. Employee programs combine cash and other rewards with the chance to win a grand prize that might include a large-screen TV or laptop computer.

“Our employees enjoy cash bonuses based on achieving goals, but it’s the chance to win an amazing prize that certainly sparks interest and keeps the credit card portfolio top of mind,” she explains.

HAPO Community Credit Union plans to launch a promotion that features an interest rate incentive for members. This program will be conducted after the credit union completes its conversion to risk-based pricing as part of PSCU Financial Services’ Account Level Processing solution, which evaluates cardholder account characteristics and behavior and automatically adjusts pricing at the account level based on a schedule determined by each credit union.

“We commend the officers of HAPO Community Credit Union for deciding to invest in their credit card program and for taking the all-important next step of bringing in a capable manager devoted to growing the portfolio,” said Mike Yatros, Executive Director of Member Development, PSCU Financial Services. “This credit union has demonstrated that the use of continuing promotions, combined with our specialists and Portfolio Management Services, can create a profitable credit card portfolio in a very short time.”  

About HAPO Community Credit Union

HAPO Community Credit Union has more than 66,000 members and over $495 million in assets. The credit union was originally founded in 1953 as a federally chartered credit union for the non-exempt employees of the Hanford Nuclear Project in Richland, Wash.

Today HAPO is a state chartered credit union that is open to all citizens who live or work in the State of Washington.

About PSCU Financial Services

As a non-profit cooperative, PSCU Financial Services is owned by more than 500 member credit unions representing almost 10 million cardholder accounts and more than 325,000 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 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.

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