5 ways credit unions can compete in credit cards
The credit card market is dominated by large national issuers with deep pockets, national scale, and many products. The competition is formidable, but not unbeatable. Community and regional financial institutions have their own advantages, including local, personal data. If they leverage those advantages, they can succeed beyond expectations.
Chase, Bank of America, Capital One, Discover, and other big issuers cast a long shadow over the U.S. credit card market. And now Apple, in partnership with Goldman Sachs, has joined the party just in case things weren’t interesting enough.
The marketing staffs of these giants number in the hundreds, and their access to the latest tools, technology, and investment dollars seems limitless.
Given all these apparent advantages, how can a regional bank, community bank, or credit union expect to compete?
There are always ways that smaller players can compete if they know how to go about it. Success hinges on mastering five key strategies. By focusing on their strengths and unique differentiators, community and regional players can strategically deepen customer relationships and drive growth in their credit card portfolio.
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