3 Important Reasons to Offer a Credit Card to Members

3 Important Reasons to Offer a Credit Card to Members

by Envisant Staff

“Financial Well-being for All is the subtle, but fundamental shift in the credit union promise to amplify what credit unions have always done better: ensuring everyone has complete, affordable access to financial services.” – CUNA/America’s Credit Unions

The reputation built by credit unions as not-for-profit financial institutions is an important one with a great deal of significance. It means credit union members trust they will be viewed as individuals, receiving personalized services focused on their needs. To meet these expectations, a full range of financial services is required. One of the most important of these services is a credit card program designed to support members’ financial goals.

1. Member Financial Well-being.
Making up 31% of consumer payments, credit cards were the most utilized payment method in 2022 (Federal Reserve Bank of San Franciso). Credit cards have many empowering benefits, including helping members participate in an increasingly digitized economy. Cardholders can also enjoy a convenient way to make day-to-day digital and POS purchases while building credit to reach larger financial goals like homeownership.

Credit unions, with their close member relationships, are well-positioned to help inform and educate members on responsible, savvy card use so they can make full use of the benefits that come from owning a credit card.

2. More Accessible for Members.
It’s well known that credit unions tend to offer better rates and fees than banks. Extending this practice to a credit card program makes these cards more affordable for more people. Knowing members also allows credit unions to look beyond the standard criteria for credit card approval, potentially increasing credit access.

3. Diversify Portfolios and Build More Profitable Member Relationships.
With the popularity of credit cards among consumers, a credit program can help credit unions bring in additional income and even offset reduced income in other areas as economic and spending trends fluctuate. Implementing a rewards strategy designed with your members’ needs in mind can also help your card become top of wallet, an important part of program growth.

A well-strategized credit card program utilizing the strengths your credit union already possesses can bring positive results for both you and your members. Members can enjoy the advantages of being well-informed cardholders, gaining access to credit with lower interest rates, while credit unions garner the benefits of a more diversified portfolio.

At Envisant, we’re here to help you develop a robust credit program. Learn more about how we can help strengthen your card portfolio today.