10 minutes
CUs and community banks have an opportunity to strategically leverage consumer interest and increase their market — if they provide the features consumers demand.
National banks dominate the consumer credit card industry to the extent that their position is unlikely to be challenged for the foreseeable future. Besides their massive scale, these giants leverage a complementary lead in consumer bank accounts that gives them greater opportunities to cross-sell other products to their existing customers. Despite national banks’ entrenchment, however, some smaller financial institutions are chipping away at their market share.
PYMNTS Intelligence’s latest survey reveals that credit unions and community banks have substantially increased their footprints in the consumer credit card space in recent years.
Twenty-four percent of consumers say they would most likely turn to either a credit union or community bank for their next credit card application. The research also shows that smaller financial institutions can improve their appeal by offering the key features current national bank cardholders value.
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. This report examines the current state of play for consumer credit cards. It draws on insights from a survey conducted from Aug. 10-21 of 2,088 consumers in the United States to explore the evolving consumer preferences surrounding card issuers.
This report examines where consumers are applying for credit cards, what types of spenders they are and what features credit unions should focus on to continue expanding their market share.
This is what we learned.
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