In a previous blog, “How COVID-19 Has Elevated the Role of Debit and Checking,” I shared my perspective on the stunning growth of debit cards and their underlying performance factors, and how checking is once again at the pinnacle of the account relationship. As we continue to see a rise in debit volume during the pandemic, the payments industry is projecting an equivalent transition of three to five years of growth for remote payment options, including online transactions, digital wallets, mobile adoption and others.
While many of our Owner credit unions are seeing record debit growth, it is important to recognize that the growth differential between our top- and bottom-third credit union debit portfolios has expanded significantly as pandemic recovery continues. This is concerning, as it likely signals a challenge for some credit unions to capture the consumer transition to a digital-first payment environment.
Based on the experience of PSCU’s Advisors Plus consulting team in the market, we’ve identified some areas of focus that credit unions should pursue now with respect to debit and checking: reinvigorating checking account growth; capitalizing on digital payments; leveraging contactless opportunities; and managing checking account connectivity.
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