In my last position at Bank of America (and MBNA), I was responsible for many of our credit-card relationships with alumni associations, athletic departments, and universities – managing the P&L for a multi-billion-dollar loan portfolio. Our team stopped a multi-year performance slide in the face of serious economic and regulatory headwinds by working closely with our collegiate partners to renegotiate contracts, add new products and marketing channels, and redistribute marketing dollars to maximize ROI.
The market has changed. While the economy will come back, the regulatory and legislative environment is likely to continue to impact portfolio profitability. Issuers are getting out of the business, and those that are staying are changing their financial models. Alumni associations need to figure out ways to make their programs more attractive to issuers before renewal time arrives.
Benchmarking of Other Schools’ Contracts With Yours
Alumni associations are getting a lot more questions these days from university administrators, the press, and lawmakers about what they’re doing to protect their constituents (including students and donors) and the university’s reputation. One way to do that is by understanding the bigger picture. The Credit CARD Act of 2009 opened the door for broad disclosure of contracts between issuers and alumni associations. Bulldog Management Solutions can offer you the opportunity to see what other schools are doing. We understand these contracts and can provide you with ammunition to explain what you’re doing well and identify interesting provisions in other schools’ affinity contracts that you might request when the time comes to renew your agreement or when you are negotiating contracts with other types of affinity partners.
Contact me if you’d like to discuss these services in more detail.