Manage Profit and Loss Drivers Effectively

Home Analytics in Action Manage profit and loss drivers effectively

Midwest credit union adds 10,000 new accounts and grows balances by 56% in under two years

Manage profit and loss drivers effectively

Background

A Midwest credit union with approximately $5B in assets and 200,000 members, sought to increase interchange income by converting debit card spend to credit card spend.

Solution

CU Rise recommended the development of a reward-based checking account as an attractive offer to move existing members from older, less-profitable products. Features of the ‘Rewards2 Checking’ account included:

  • 50% APY on checking account balances up to $20,000
  • No minimum balance and no fees
  • Points on every credit card purchase, redeemable for cash
  • Better interest rates than money market dividend rates
  • No-fee debit card with zero-liability fraud protection

Approach

Results

  • In the span of 21 months, 10,045 Rewards2 Checking accounts were opened – an average of 478 accounts per month.
  • Overall balances grew by 56% YOY
  • Linked credit card monthly profit is $4, while checking account monthly profit is $11.47