| AssetExchange Announces Analysis of Q1 2003 Credit Union Credit Card Trends
PORTLAND , Ore., June 17, 2003 – AssetExchange, the leading credit card consulting and brokerage firm for credit unions, has compiled data about credit union credit card portfolios from the first quarter of 2003. Findings are based on NCUA call reports and the company’s observations.
Several trends emerged from the study related to card portfolio growth, membership penetration, and card portfolio sales:
Most CU card portfolios continued to shrink, although total assets remained stable.
- 59% of credit union credit card portfolios were smaller in March 2003 than in March 2002, continuing the trend of portfolio shrinkage among a majority of credit unions.
- Total card assets grew about 2.5% since March 2002, an indication that growth from a minority of portfolios offset the shrinkage experienced by the majority.
- Reflecting the normal Q1 seasonal drop (due primarily to consumers that pay down debt accumulated over the holidays), 95% of credit union card portfolios shrunk in Q1 2003, with larger portfolios shrinking the most.
Card penetration is gradually falling.
- Penetration has been gradually dropping (in figure at left below, curves shifting to left over time) due to intense card competition.
- Most credit unions have a 10-30% cross-sell penetration of their credit card into the membership.
- Large credit unions exhibit higher card penetration (figure at right below).
Credit union card portfolio sales continued.
- An estimated 10 credit union card portfolios were sold in Q1 2003, with total value of about $80 million.
- Portfolios sold ranged from $1-$32 million.
- This pace matches the 2002 pace in number sold, but average portfolio size and total $ is about 50% larger.
- Almost all transactions were facilitated by brokers. AssetExchange was the leading broker, facilitating about 50% of the total dollar value sold.
About AssetExchange
AssetExchange is a credit card portfolio consulting and brokerage firm for credit unions. Services include free Strategic Card Assessments, portfolio growth consulting, and the facilitation of credit card portfolio sales between credit unions and multiple credit card issuers. For additional information, please visit www.AssetExchange.com or call (503) 220-0007.
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