If you want to boggle your mind, think for a moment about consumer credit card usage.
- Every second, over 10,000 credit card transactions happen around the world.
- In 2018, there were 41 billion credit card transactions in the U.S. alone.
- There are more than 180 million credit card holders in the U.S. – approximately 7 out of 10 adult Americans.
- The average credit card holder has four different cards.
Since the Diner’s Club became the first multipurpose charge card in 1950, credit cards have worked their way into the wallets of hundreds of millions of American consumers. With a market this big, it is surprising that nearly 40% of U.S. credit unions either don’t have a credit card portfolio – or have sold or outsourced it years ago.
Of credit unions that do, 75% have a credit card penetration well below 20%. The data is clear: credit cards are a source of major untapped potential for credit unions, and the multi-faceted rewards for a good card strategy are many. A strong credit card portfolio helps to drive growth, profitability, loyalty and deeper relationships. Credit cards are one of the most dynamic and engaging products a CU can offer, and those with greater credit card penetration enjoy higher return on assets than most other loan products.
Credit unions that want to get serious about a credit card strategy should start first with their data. Read further here for three key ways analytics will make your efforts far more effective.