Hottest Credit Card in Town

David Stark, PresidentRosemarie Siems, Electronic Services

ManagerBull’s Eye Credit Union

Bull’s Eye Credit Union

Wisconsin Rapids, WI 54495-1087

93,611,001 Assets

20,726 Members

9,627,699.44 Credit Card Portfolio

7,781 Credit Card Accounts

Why Did We Become ‘The Hottest Credit Card in Town’?• Threat of Selling Portfolio

– Decrease in Outstanding Balances– Decrease in Finance Charge Income– Decrease in Interchange Income– Decrease in Credit Card Accounts– Competition

Declining Credit Card Income

0

100000

200000

300000

400000

500000

600000

700000

800000

1999 2000 2001 2002 2003 2004

Interest Income

Fee Income

Interchange Income

Expenses

Declining Outstanding Balances

0

2000000

4000000

6000000

8000000

10000000

12000000

1995 1997 1999 2001 2003

Balances

Declining Credit Card Accounts

0

2000

4000

6000

8000

10000

12000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Accounts

How Did We Become ‘The Hottest Credit Card in Town’?• Contact with Certegy Representative

• Credit Card Holder Survey

• Brainstorming Sessions

• Developed Plan and Timeline with Certegy

• Implementation

• Marketing

• Training

Plan Strategies

• Review current policies to increase line of credit limits and receive Board Approval

• Submit application to Certegy for Scorecard and Direct Mail

• Review ‘Gold and Classic’ portfolio and transfer who qualify to ‘Gold and Platinum’

• Update/Revise current applications and disclosures

• Create a Marketing Plan• Train staff on new credit card options/program

Plan StrategiesContinued

• Implement ‘Skip A Payment’ program• Utilize Beacon scoring for monthly reissue• Set up new Bill Codes• Set up Direct Mail Campaign to existing members

without a credit card• Set up Direct Mail Campaign to non-members in

chartered area• Transfer cardholders to upgraded cards prior to

rate conversion

Researched Local Competition

Fixed or AnnualName Type Rate Variable Fee Rebates

Members Advantage C.U.VISA/MC 11.99% Fixed None NonePort C.U. NoneNekoosa C.U. MC 11.90% Fixed None NoneCentral WI C.U. VISA 7.99% Fixed None None1st Federal - WR VISA 5.90% Intro Rate

Platinum 10.74%-16.74% Fixed $55 Air MilesClassic 12.74%-16.74% Fixed

Valley Communities VISA 5.9% -6mos. Intro Rate None NoneVariable - thereafter

River Cities Bank VISAPlatinum 5.90% -6mos Variable None None

8.24%-14.24%Platinum 5.90% -6mos Variable $55 Air Miles

14.24%-19.99%Classic 5.90% -6mos Variable None Cash rebate

16.24%-19.99%

LOCAL CREDIT CARD PROGRAMS

Top 5 Cardholder Survey Results

Local ServiceLow Interest Rate CardNo Annual FeeReward Points or Cash BackBalance Transfer Rate

Credit Card Program

Old Program Offered MasterCard and Visa

Cards in each program

Platinum 9.9% APR

Gold 11.75% APR

Classic 12% APR

New Program Platinum 7.9% APR With

3.9% Balance Transfer Rate for 6 Months

Visa Gold 9.9% APR With Scorecard Bonus Point Rewards

MasterCard Gold 9.9% APR With Scorecard CashBack Rewards

Classic 14% APR

                                                             

                                              

           

                                                                                                                   

                                              

           

7.9% A.P.R. Visa/MasterCard

FIXED

9.9% A.P.R. FIXED with Scorecard Bonus

9.9% A.P.R. FIXED with Scorecard Cashback

14% A.P.R.Visa/MasterCard

FIXED

25 Day Grace Period Includes Travel Bonusesand Gifts Rewards

Earn $$$ based on Purchases 25 Day Grace Period

25 Day Grace Period 25 Day Grace Period

Click here for details! Click here for details! Click here for details! Click here for details!

Web Site Hottest Card In Town

Balance Transfer Program

• Special Rate on Platinum Cards only• 3.9% APR for 6 Months• Minimum transfer amount of $50.00• Brochure with form to fill out• Our Credit Card Department

Sent out checks Sent cardholder letter with additional checks Posted cleared items to credit card accounts

New Account Goals not AchievedJuly August September October November December Total

VGO-000 Visa Gold 4 7 4 0 1 2 18 VPL-000 Visa Platinum 28 16 15 15 7 8 89 VCL-000 Visa Classic 2 6 1 0 2 2 13 MPL-000 MasterCard Platinum 24 13 12 15 8 0 72 MCL-000 MasterCard Classic 4 2 4 10 4 1 25 MGO-000 MasterCard Gold 5 7 3 5 1 0 21

Total 67 51 39 45 23 13 238

Goal: 750 New Accounts by December 31, 2003

July August September October November December Total MPL-001 MasterCard Platinum 0 90 20 12 1 1 124 VGO-001 Visa Gold 0 27 3 1 0 1 32 MGO-001 MasterCard Gold 0 19 3 3 2 2 29

Total 0 136 26 16 3 4 185

Goal: 500 New Accounts by November 1, 2003

July August September October November December Total MPL-500 MasterCard Platinum 0 88 30 13 3 2 136 VGO-500 Visa Gold 0 40 7 2 0 0 49 MGO-500 MasterCard Gold 0 29 6 6 0 2 43

Total 0 157 43 21 3 4 228

Goal: 1,000 New Accounts by November 1, 2003

New Credit Card AccountsBECU Cross Selling

Direct Mail - Member List

Direct Mail - Non Member List

Balance Transfer Results

Rejects Pending Processed Paid TotalBull's Eye CU 3 0 64 293 360Direct Mail Member 0 1 66 67Non-Member D M 0 3 80 83

Total 3 0 68 439 510Date Amount No. Checks Date Amount No. Checks

9/22/2003 21,432.71 12 12/8/2003 13,124.86 69/23/2003 12,910.00 5 12/10/2003 6,214.60 29/24/2003 2,909.60 3 12/11/2003 240.00 19/24/2003 20,232.48 10 12/12/2003 2,474.13 2

Total 2,183,760.82 967 2,258.28$ Average Check 2,258.28$

Balance Transfers12/31/2004

Campaign Ending Balances

5/31/2003 12/31/2004Difference for

the MonthMasterCard Classic 2,014,419.91 257,444.04 (1,756,975.87) MasterCard Gold 418,416.12 589,604.31 171,188.19 MasterCard Platinum 1,061,526.88 5,432,237.46 4,370,710.58 Visa Classic 1,250,746.44 203,732.39 (1,047,014.05) Visa Gold 187,007.41 819,189.28 632,181.87 Visa Platinum 1,012,837.54 3,201,571.15 2,188,733.61

Total 5,944,954.30 10,503,778.63 4,558,824.33

The above balance differences reflects the upgrade transfers from the Classic cards to Gold and Platinum.

Staff Rewards

• Dinner for those who assisted with the upgrade process

• Lunches as Account Balance growth targets were achieved

• Steak Fry for all Staff when Balance Goal was achieved

Campaign CostsMarketing - $80,000

• Advertising-Media• Direct Mail• Website• Drive up stuffers• Lobby displays• Cross-Selling Campaign

Processing - $78,900• Account /Cards reissued• Plastic and Disclosures• Scorecard• Balance Transfer• Direct Mail set up

Cost Justification• 185 New Accounts

• Increase in Balances 4.5 Million

• Increase in Interchange Income

• Increase in Finance Charges

• Increase in Fee Income

• Maintain balances

Current Balances

12/31/2004 3/31/2005Difference for

the Month Open To Buy No. AccountsMasterCard Classic 257,444.04 204,341.50 (53,102.54) 446,236.50 384 MasterCard Gold 589,604.31 540,935.82 (48,668.49) 712,299.18 307 MasterCard Platinum 5,432,237.46 4,955,486.73 (476,750.73) 17,902,104.27 3,958 Visa Classic 203,732.39 160,323.52 (43,408.87) 261,046.48 275 Visa Gold 819,189.28 733,321.65 (85,867.63) 975,598.35 412 Visa Platinum 3,201,571.15 3,033,260.22 (168,310.93) 10,595,121.78 2,445

Total 10,503,778.63 9,627,669.44 (876,109.19) 30,892,406.56 7,781

Current Program Strategies

Card Reissue Review – use Beacon Score for increases and upgrades

Skip A Payment Platinum 4 Times a Year Gold 3 Times a Year Classic 2 Times a Year

4.9% APR Balance Transfer Rate for 6 months Increase Member Penetration – Cross-SellingFast Track Card Activation Program

Future Program Goals

• 50% Member Penetration

• Maintain 11.5 Million Dollar Portfolio

• 5% Annual Increase in Outstanding Balances

Questions?

Rosemarie Siems

rsiems@becu.net

David Stark

dstark@becu.net