Two New White Papers: Managing Credit Card Programs & Preparing On-the-Job Trainers

CUNA Councils
July 29, 2009 | COMMENTS

As many banks are forced to retool their business models because of recently passed legislation that limits certain predatory lending practices, credit unions should tout their continued use of consumer-friendly credit card pricing, says a new CUNA Lending Council white paper.

“Credit Cards: Strategies for Managing Your Program Actively and Structuring it for Success” examines various ways that credit unions can structure and manage a credit card program for success. Specifically, the paper discusses: active management and proper program structure, card program enhancements, marketing, fraud prevention, cost containment, and industry trends. It also includes a review of new credit card laws and regulations along with four credit union case studies of successful credit card programs.

"Credit union management must make their card programs core products if they are to succeed," said Lloyd Gill, lending council chair and executive vice president of City County CU in Ft. Lauderdale, Fla. “By structuring their credit card programs correctly, credit unions can add features and benefits that enable them to compete effectively in the market.“

In the paper, Bob Hackney, president of Card Services for Credit Unions in Clearwater, Fla., offers credit unions this advice: “Most credit unions are concerned with minimizing expenses and losses right now, but it’s still important to focus on driving revenue. Focus on doing portfolio reviews, revalidating credit limits, and setting appropriate rates based on a risk-based lending model, rather than on doing new solicitations.”

“Meeting the Challenge of Preparing On-the-Job Trainers” by the CUNA HR/TD Council explains how to successfully prepare trainers to assume a high level of responsibility and communicate basics effectively to new hires. It also details important qualities for successful trainers to have and considerations for selecting a trainer.

Specifically, the paper offers guidance on a number of issues and challenges impacting on-the-job trainers and their trainees, including:

• Reducing risk of errors by new hires during member transactions,
• Training new hires at a comprehensible rate that also meets managerial expectations,
• Preparing trainers to effectively communicate concepts to both individuals and small groups,
• Meeting system-wide changes in a short period of time, such as a core conversion, • Encouraging a broad seeking spirit in new trainees to engage in informal learning as a supplement to formal training, and • Training multiple generations within the same workplace.

CUNA Council members are entitled to complimentary copies of these white papers; non-members may purchase the white papers for a price of $50 per copy.

The papers are available online in the white paper section of each council site - select the “Lending” tab for the credit card paper or the “HR/TD” tab for the training paper.