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CU card portfolio sales decline

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PORTLAND, Ore. (2/26/09)--AssetExchange, a credit card portfolio advisory and brokerage firm, analyzed fourth quarter 2008 credit-union credit-card portfolio trends. For the roughly 2,100 credit unions with credit card portfolios of $1 million and larger:
* Credit card portfolio sales have continued to decline substantially. In 2008, about 22 portfolios with balances of about $100 million sold versus about 70 portfolios with $390 million in outstandings in 2007, representing a roughly 75% reduction in portfolio sales. Fourth-quarter 2008 data suggest that only two credit unions with credit card portfolios larger than $1 million sold their portfolios during the quarter, with a combined balance of roughly $3 million. In the fourth quarter of 2007, about 16 portfolios with about $110 million in combined balances were sold. * Outstanding balances grew 8.5% between December 2007 and December 2008 to $32.3 million. Card accounts increased 2% over the same period to 12.2 million. * The percentage of portfolios that rose more than the rate of inflation during the previous 12 months decreased to 67% in 2008 from 86% in 2007 as inflationary pressures eased. The percentage of portfolios that grew in nominal terms decreased to 66% from 69% in 2007. * Total card assets as a percentage of total assets held steady at 4.9%. * Credit card penetration remained flat in the fourth quarter of 2008 at 18%.
Data provided are for credit card portfolios larger than $1 million in each time period and are based on National Credit Union Administration call report data. Inflation values are from the U.S. Department of Labor Bureau of Labor Statistics--0.09% between December 2007 and December 2008.

Products and Services briefs (02/25/2009)

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* LIVONIA, Mich. (2/26/09)--CUcorp, a wholly owned subsidiary of the Michigan Credit Union League, announced it has added Discover Network as its preferred partner for affinity/co-branded credit cards. Discover is a business unit of Discover Financial Services. Under the agreement, CUcorp will promote Discover Network to participating Michigan credit unions interested in issuing the cards. The network includes features such as the ability to cash over or access cash at the point of sale of participating merchants; recurring-bill automatic payments; a points-based reward system; a secure shopping website, and fraud solutions … * ST. PETERSBURG, Fla. (2/26/09)--Total Member Care, PSCU Financial Services' call center solution, took 2.9 million calls through the Financial Service Centers Cooperative's (FSCC) Custom Call Center Outlet during 2008. The call volume rose by more than one million transactions in 2008. San Dimas, Calif.-based FSCC provides a shared branch network of credit unions. Call volume increased each month from January's record 175,042 calls to more than 300,000 during October. December set another record at 346,504 calls, an increase of nearly 200,000 calls from the same period in 2007. PSCU Financial Services' call centers service more than 16 million calls annually, supporting credit unions' credit, debit, bill payment products, and lending and member service … * VISTA, Calif. (2/26/09)--Bluepoint Solutions' remote deposit capture (RDC) teller solution has been verified as Citrix Ready, it announced at the Credit Union National Association's Governmental Affairs Conference in Washington, D.C., this week. Bluepoint provides Check 21 capture, RDC, image-based item processing, electronic document management, and multi-factor identification software technology for financial institutions. The Citrix Ready program helps customers identify complementary third-party solutions for Citrix Application Delivery Infrastructure solutions. It ensures compatibility with Citrix XenApp (formerly Presentation Server) 4.0. Bluepoint plans to pursue certifications for all its products for XenApp versions 4. 4.5 and 5 …