Knowledge and Power Where it Counts: OnPoint and Allegacy Benefit from Advisors Plus Credit Card Portfolio Start-up Consulting
OnPoint's Credit Card Start-up
OnPoint is Oregon's largest credit union, serving 240,000 members through an extensive branch network. During its more than 80-year history however, OnPoint had never offered its members a credit card product until 2008.
The Advisors Plus Credit Card Start-up Consulting team helped OnPoint launch an all-platinum suite of products by starting with a comprehensive review of the long-term marketplace, customer segmentation, pricing, and legislative factors that would affect OnPoint’s entry into the field.
In 2011, Advisors Plus conducted a full-scale follow-up P & L review to determine how OnPoint's credit card programs were tracking to management’s five-year goals. The results were extremely impressive:
- OnPoint had exceeded its five-year projection for active accounts and outstanding balances after only 28 months.
- Total accounts had grown from zero to 44,102.
- Outstanding balances had grown from zero to $76.4 million.
Allegacy's Reentry into the Credit Card Business
Allegacy Federal Credit Union is one of the largest credit unions in North Carolina, with over 110,000 members and $1.0 billion in assets. Allegacy management attributes its success in attracting members from over 550 companies nationwide to a conservative growth philosophy that always puts the needs of its members first. Consistent with that belief, Allegacy had divested its credit card portfolio in 2007.
When Allegacy decided to re-enter the card business in early 2012, Advisors Plus got the call to make sure it was done right. Advisors Plus started by setting an overall direction and goals, including pro forma financials that set targets around number of accounts and average transfer balances.
Those targets were then distributed to Allegacy’s 17 branches to encourage team ownership of the mission and results. Advisors Plus also helped Allegacy craft and execute a direct mail campaign to its general membership. The card program realized a 3% response rate, far above Allegacy’s 1% goal.