SAN ANTONIO–RAI Partners said it has entered into a partnership with PenFed Credit Union to implement a comprehensive acceptance program it said is designed to help retain members who are declined for credit cards.
“The collaboration addresses a critical industry challenge: preventing members from leaving their credit union after a credit decline to seek financial solutions elsewhere,” the company said in a statement.
The $31-billion PenFed, which has almost three-million members, will be able to offer declined members alternative credit card solutions through RAI Partners’ platform, rather than losing those relationships to large banks or other financial institutions, the company stated.
Members receive approval options while PenFed maintains the relationship and generates revenue through the partnership, it added.
‘Essential Tools’
“PenFed’s decision to implement our acceptance program validates what we’ve been saying: credit unions shouldn’t lose good members just because they can’t approve every application,” Brian Scott, co-founder at RAI Partners, said in a statement. “When a credit union of PenFed’s scale and sophistication chooses to partner with us, it demonstrates that second-look programs are becoming essential tools for member retention and revenue growth.”
Added Sumeet Bhalla, PenFed SVP of consumer banking, in a statement, “Our members deserve more than just a decline letter. Through this partnership with RAI Partners, we can offer real solutions that keep members within the PenFed family.”
Revenue Sharing
According to RAI Partners, the partnership includes revenue-sharing components that create value for both organizations while keeping members engaged within the PenFed relationship. Both organizations are exploring additional opportunities to expand the suite of financial products and services available to PenFed members.
