Improving Performance for CFE Federal Credit Union’s Credit Card Portfolio
Since its founding 75 years ago as a credit union for teachers, CFE Federal Credit Union has grown into a Florida powerhouse with over $1.3 billion in assets. As CFE has grown and evolved to meet the changing needs of its members, its strategic partnership with Advisors Plus has grown as well. One example of such synergy is the far-reaching credit card review that Advisors Plus conducted for CFE, and the dramatic improvements that followed.
At the time of the review, CFE’s credit card program was driving in the slow lane, with ho-hum fixed-rate card products, and slow growth and low member utilization to match. Advisors Plus identified accounts that warranted improved card products and credit lines, and created an annual marketing calendar to target high-potential member segments for new-account and balance growth.
The results were spectacular! During a four-year period, CFE:
- Grew sales of new credit cards by 44.6%
- Grew active credit card accounts at nearly twice the rate of membership growth—14.2% versus 8.9%
- Grew portfolio outstanding balances 55%
- Grew total annual net income by 67.2%
CFE’s credit card portfolio is now a jewel in its business crown, and Advisors Plus continues to provide thought leadership and tactical implementation advice on how to keep it growing and moving forward.