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Case Study: Randolph Brooks’ Growth Mindset Pays Off

Case Study: Randolph Brooks’ Growth Mindset Pays Off
Posted: Jan 18, 2018
Comments: 0
Author: Alexis Nab

Trellance's Optimize Credit Line Increase Program plays a pivotal role

Texas-based Randolph Brooks FCU strives to offer the best-in-class financial solutions to its members.  However, while their quarterly business reviews showed that their credit card program was performing well in comparison to their credit union peers, they wanted to achieve more from their program.  “Through strategic analysis, we identified slower card acquisition and transaction growth than what is expected of a portfolio of our size”, noted Deana Bartel, Vice President of Payments Services.

 

Through deeper review and analysis, Deana and her team identified several challenges that they knew could be addressed; including credit utilization, credit line increases, and cash back rewards. They could tell by the low utilization rate on their cards that qualified cardholders did not have credit limits high enough to encourage them to make their Randolph Brooks FCU credit cards top-of-wallet or encourage spend. “This is why we decided to look at Trellance’s Optimize Credit Line Increase Program (CLIP)”, Bartel said.

 

Sometimes change equals growth

 

As a result, in 2017, Randolph Brooks FCU decided to make some major changes to its credit card program to address the challenges that were identified.  “Two of the changes we made included participating in the CLIP offered through Trellance’s Optimize Program and transforming our Mastercard CashBack Rewards Card from a tier 3,2,1 category-driven cashback platform to an industry-leading 2% unlimited cashback on all purchases” said Bartel.  Additionally, they worked closely with their Consumer Lending Decision Center to improve their credit card application and credit line approval processes.

 

Incorporating the Optimize CLIP allowed Randolph Brooks FCU to evaluate its credit card portfolio for the first time since 2004 and they were able to offer a credit line increase to more than 80,000 of their existing cardholders.  “We worked closely with the Trellance team (then CSCU), FIS and Twenty-Twenty Analytics to coordinate our cardholders’ line increases in a manageable, strategic way and it paid off. Based on our analysis of the CLIP, we have found the program to be a huge success!”, expressed Bartel.

 

The results are in …

 

Randolph Brooks FCU decreased its Utilization Rate from 40.7% in November 2016 to 34.7% in November 2017, while experiencing increases in cardholder spend and interest income:

 

  • Consumer Card Outstandings - increased by 23.44% across 5 card types

  • Transaction Volume - increased by 22.1%

  • Transaction Counts - increased by 20.2%

  • Interchange Income - increased by 21.9%

  • Finance Charge Income - increased by 14.5%

  • Finance Charge Per Card - increased 7.2%

     

    They have given a lot of credit to Trellance’s Optimize CLIP and believe that credit unions with loyal, responsible members can benefit from using the solution. “Trellance’s Optimize program makes it easy to offer qualified cardholders a credit line increase because it meets regulatory requirements while increasing member satisfaction and loyalty.  Additionally, it does not require a lot of internal resources to implement and the Trellance team is available to help every step of the way,” noted Bartel. She also mentioned that they are already seeking approval to offer a credit line increase to qualified cardholders on an annual basis.  “We have seen such positive growth related to this CLIP that we believe it makes sense to continue the Program, but we are also cognizant of the risk involved, which is why we are also considering taking advantage of the line decrease and will continue to monitor the results of the Program”, Bartel added.

Achieve growth with the right mindset and Trellance's Credit Line Increase Program! E-mail us at Optimize@Trellance.com.

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Alexis NabAlexis Nab

Alexis is Trellance's Optimize Marketing Specialist and its resident millennial “expert”. She plays a pivotal role in the managing and execution of the campaigns within the Optimize Portfolio Growth Solutions and Credit Line Increase Programs.

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