Re-strategizing credit card growth and risk amid economic and member behavior shifts

Shifts in economic and member behavior have forced credit unions to alter their short- and long-term forecasting. PSCU’s Advisors Plus Consulting has identified several focus areas for credit unions as they realign their strategic growth plans to account for the impacts of these shifts.

Adjusting Promotional Strategies, Targeting and Product Enhancements

The pandemic has spurred an upswing in e-commerce, with more consumers spending online – which is accelerating the need for credit unions to keep up in the digital supply chain. This includes enhanced communications and marketing campaigns via digital channels, connecting with members quickly and effectively.

One of the most prevalent promotional trends in the current environment is offering card incentives in merchant spend categories that cardholders are actively using, but may not be the typical incented spend categories on higher transaction-based card product offerings. For example, instead of 2% cash back per dollar spent on travel and entertainment where higher interchange is generated, we are now seeing financial institutions offering 2% cash back per dollar spent at gas stations and grocery stores, simply to stay competitive and remain top of wallet. Staying relevant by meeting member-centric needs and successfully progressing toward aligning short-term growth goals is critical in today’s payments landscape.


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