City Bank Texas meets evolving cardholder needs with jhaPassPort Debit Optimizer™

“With the help of jhaPassPort Debit Optimizer and associated

marketing campaigns, we can accomplish our goal of growing

our debit card portfolio’s transaction base while also making

City Bank’s debit card top of wallet within our customer base.”

Curtis FishSenior Vice PresidentElectronic Payments City Bank Texas

Institution:City Bank Texas

Location:Lubbock, TX

Website:www.citybankonline.com

Assets:$2.54M

JACK HENRY & ASSOCIATES, INC.® (JHA) CASE STUDY

“jhaPassPort

Debit Optimizer

aids in making

the City Bank

debit card top

of wallet and

establishes a

purchasing

behavior

beneficial for

the bank.”

Curtis Fish

Curtis Fish, Senior Vice President at City Bank Texas, describes how jhaPassPort Debit Optimizer is used to evaluate targeted marketing campaigns.

Jack Henry & Associates: What was the compelling business reason you acquired jhaPassPort Debit Optimizer?

Curtis: Success in consumer banking depends on an institution’s ability to react to evolving customer needs and behaviors. When it comes to optimizing the use of customer debit cards, these institutions should regularly identify and target underperforming cards before they slip into a state of inactivity.

With jhaPassPort Debit Optimizer, City Bank is able to monitor and hone in on this target market using an incentive-based campaign. Targeted cardholders are marketed to meet a baseline of transactions in a campaign month, in exchange for a gift card incentive. This aids in making the City Bank debit card top of wallet and establishes a purchasing behavior beneficial for the bank

JHA: Tell us about your business challenge and how you were able to address it with jhaPassPort Debit Optimizer.

Curtis: To make the data from jhaPassPort Debit Optimizer actionable, City Bank deployed a targeted, debit usage marketing campaign to over 10,000 underperforming cardholders. This segment – who we define as those with a purchase transaction volume between 1-7 during a baseline month – represented approximately fifteen percent of the active debit portfolio. These cardholders were encouraged to increase transaction volume during the campaign period in exchange for a gift card reward. Those who performed 15 to 19 transactions were given a $10 gift card, while 20+ transactions earned a $20 gift card.

The results of the campaign are very encouraging. In the eleven months post-campaign, cards targeted in the campaign are sustaining a transaction volume lift of 67%, spend by 162%, and associated interchange at 178%. Summarized another way, monthly transaction volume has increased from 3.3 per card to an average of 8.79, spend has grown from $103.28 to $426.83, and interchange from $0.80 to $3.51 (see charts below). These figures convey not only a spike in activity during the campaign period, but also sustained behavior during subsequent months.

Aside from the monetary benefits of the campaign, there are other advantages for City Bank. Cardholders that met the incentive criteria received an FI-branded reward letter recognizing their participation, helping to promote brand loyalty. Operationally, City Bank now has a baseline of performance to direct future target markets, incentives, and other marketing strategies. Coupled with the ease of campaign reporting, the bank gains numerous efficiencies and can now allocate resources elsewhere.

City Bank Texas meets evolving cardholder needs with jhaPassPort Debit Optimizer™

JHA PAYMENT SOLUTIONS CASE STUDY

“In the eleven

months following

the marketing

campaign, the

cards targeted are

sustaining a

transaction volume

lift of 67%, and

spend by 162%.”

Curtis Fish

Sustained Increases in Monthly Transaction Volume and Spend

0.00

2.00

4.00

6.00

8.00

10.00

12.00

TransactionsPerMonth

$- $50.00

$100.00$150.00$200.00$250.00$300.00$350.00$400.00$450.00$500.00

SpendPerMonth

$- $0.50$1.00$1.50$2.00$2.50$3.00$3.50$4.00$4.50

InterchangePerMonth

Time Period 9/15/2016 - 11/14/2017

Time Period 9/15/2016 - 11/14/2017

Time Period 9/15/2016 - 11/14/2017

■ For more information about Jack Henry & Associates Inc.®, call 417-235-6652 or visit www.jackhenry.com.

■ © 2018 Jack Henry & Associates, Inc.®

JHA PAYMENT SOLUTIONS CASE STUDY

JHA: If you evaluated competitive alternatives, what were the functional distinctions that supported your decision to utilize jhaPassPort Debit Optimizer?

Curtis: Our partnership with JHA has afforded the ability to utilize Debit Optimizer campaigns that improve our key performance indicators. In comparison to alternative services we have used, we have found these targeted campaigns to provide healthier results in terms of incentive qualification, and lift in volume, spend, and interchange.

JHA: If there are any specific features/functions that have exceeded your expectations, please share them with us.

Curtis: Primary benefits of using jhaPassPort Debit Optimizer’s campaign are the ease of implementing and how quickly we can get it to market. The turnkey nature of these campaigns allow us to quickly identify an opportunity and act upon it. Additionally, we have the option of using a suggested template, or providing our own creative concept to reinforce our own personal brand. City Bank was able to take advantage of recommended target market, incentive, and marketing method strategies, while still designing our own marketing collateral.

JHA: If you would recommend this solution to other FIs, what is the most compelling statement you would make to another institution considering jhaPassPort Debit Optimizer?

Curtis: City Bank has long been passionate in our pledge to evolve along with our customer needs and desires. With the help of jhaPassPort Debit Optimizer and associated marketing campaigns, we can accomplish these goals while also growing our share of wallet within our customer base. Furthermore, the success of our 2016 campaign made committing to programs in 2017 a natural progression of our debit strategy.

JHA Payment Solutions™ provides the customized strategy, proven solutions for every payments channel, and advancing technologies needed to simplify complex payment processing and continually evolve the payments experience by moving money faster, more efficiently, and more securely.

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