National banks dominate the consumer credit space. Still, credit unions and community banks are becoming an increasingly popular choice for issuing credit cards. The share of consumers with a CU or community bank card as their primary card rose from 8.3% in 2020 to 13% in 2023. Moreover, 24% of consumers said they would likely turn to these financial institutions for their next credit application.
CUs and community banks can improve their appeal by offering the key features national bank cardholders value. These include rewards and cash back programs, the ability to split payments and adjustable spending limits.
These are just some of the findings detailed in “Credit Unions and Community Banks Gain Credit Card Issuing Momentum,” a PYMNTS Intelligence and Elan Credit Card collaboration. The report examines the current state of play for consumer credit cards. It draws on insights from a survey conducted from Aug. 10 to Aug. 21 of 2,088 United States consumers to explore their evolving preferences surrounding card issuers.
Other findings from the study follow.
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