VELOCITY CREDIT UNION FINDS SPEEDY SUCCESS IN ‘LESS IS MORE’ APPROACH TO CREDIT CARD LAUNCH
TAMPA, Fla. (May 20, 2013) Since launching its credit card program in January 2013, CSCU (Card Services for Credit Unions) member Velocity Credit Union of Austin, TX is poised to exceed its total outstanding balance goal for the year, already reaching $1 million in just over two months. Choosing not to promote the program online or widely to its members in the initial phases, Velocity Credit Union soft-launched its credit card program by offering an attractive introductory interest rate to preselected members.
“There are no bells and whistles attached to this program,” said Mike Fisher, Senior Vice President of Lending, Velocity Credit Union. “The key to our success is we understand the needs of our membership base and we were able to project their response to the offer based on these needs.”
“CSCU is committed to providing our member credit unions with the latest industry trends and services that keep them on the leading edge,” said Robert Hackney, president of CSCU. “As a part of that commitment, we have partnered with MShift to bring our member credit unions a mobile banking solution that’s carrier and content agnostic at a superior value.”
Velocity Credit Union employed a direct mail strategy that resulted in a 10% application response rate from its first preselected group of members and 4.2% from a second group of preselected members, which propelled the total outstanding balances to close to $740,000. Sending an email blast to members who had opted in for e-marketing helped Velocity Credit Union reach $1 million in total outstanding balances in only 70 days.
“Driven by our own internal knowledge, we were confident we could compel our interest-savvy cardholders to apply; and from here, we are eager to work with CSCU to implement new ways to broaden our cardholder base,” added Fisher. “In the initial phases, we were driving our members to apply online at www.velocitycu.com/visa.”
“Up to this point, Velocity has been successful in appealing to members who are interested in a low rate,” said Mike Chenderlin, Portfolio Consulting Services, CSCU. “ In addition to the low rate, we will work with Velocity to implement additional enhancements, such as ScoreCard® Rewards and ProDirect card acquisition program, to help retain these members as well as attract those interested in rewards.”
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About Velocity Credit Union
Chartered in 1947, Velocity Credit Union is a full service financial institution that serves as a local banking alternative to residents of the five-county area around Austin, Texas. The credit union has assets of $640 million and serves more than 70,000 members.