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SF Police Credit Union
In 2009, SF Police Credit Union (SFPCU) partnered with consultants at Experian to implement a risk-based pricing program that incorporates the credit union’s traditional values with highly developed and effective pricing strategies. Headquartered in San Francisco since 1953, the credit union remains strong and competitive amid the difficulties facing many financial institutions in a down economy.

“SFPCU is committed to providing outstanding service to all its members. Partnering with Experian will allow us to continue to honor our commitment and move us towards the future,” said Lisa Swanson, Senior Vice President, Marketing and Strategy. To further distinguish itself as a premier credit union that services the financial needs of first responders and their families, SFPCU’s primary objectives revolved around the following tenets:

  • Service: SFPCU wanted to provide prompt and efficient service in a very competitive marketplace. With a sound financial base, risk-based pricing will assist the credit union in continuing to provide a service-oriented focus. This strategic advantage sets the credit union apart from other institutions in unstable economic times.
  • Relationship: The credit union wanted to continue to establish and maintain lifelong relationships with its members. The risk-based pricing program will help SFPCU strengthen relationships of its best members and appropriately provide opportunities to members who are striving to rebuild their creditworthiness.
  • Profitability: Although well-capitalized, the credit union wanted to improve loan portfolio profitability. By considering cost, risk and desired returns across paper grades and products, the risk-based pricing program will assist the credit union in measuring cost and risk associated with new applicants.

In addition to the above-referenced objectives, SFPCU chose a risk-based pricing approach that included monitoring and consulting provisions. These capabilities will assist the credit union in making targeted decisions based on trends observed within its membership. Monitoring will provide confirmation of goals and objectives as well as improve compliance with federal regulatory standards in a closely scrutinized economic environment. “With guidance from Experian, SFPCU will be able to achieve its goal of providing service to a broad segment of our membership base while improving loan portfolio profitability,” said Eddie Young, Chief Financial Officer.

SFPCU implemented risk-based pricing not as a necessity, but instead, as another step toward excellence in its commitment to its membership.



 

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