As shown in the Co-op CU Growth Outlook research study, conducted in partnership with EY and Filene, payments are key for credit unions to drive revenue and profitability. As fintech upstarts become increasingly competitive, engaging members daily through payments enables credit unions to provide a superior experience to strengthen member relationships and build trust.
But growing credit and debit portfolios can be challenging, especially without a clear understanding of members’ spending and payment behaviors. The ongoing tracking and analysis of three commonly-used metrics—penetration, activation and usage—can go a long way toward providing that understanding. By developing key strategies in these three areas, credit unions can effectively increase their members’ card usage and grow their portfolios.
Now is an ideal time to optimize growth in your payment portfolio. Why? Both debit and credit have momentum — and for different reasons. Consider these growth-related facts:
- Debit remains the most popular payment method, with 37% percent of U.S. consumers using debit cards to pay for purchases. Debit is widely used and it defines the relationship between financial institutions and their most committed customers and members.
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