CUNA
  • Advocacy
    • Priorities we’re fighting for
    • Actions you can take
  • News
  • Learn
  • Compliance
  • Shop
  • Topics
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Contact
Learn More about Member Value

News

Member Benefits
Learn more
Learn more about the benefits of membership.
Home » Rewards awareness slides CU-issued credit cards to top: Filene
CU System

Rewards awareness slides CU-issued credit cards to top: Filene

December 29, 2015

MADISON, Wis. (12/29/15)--Credit card growth at credit unions continues to rise, but the fact remains that the large majority of consumers pick their bank-issued cards first when making a purchase.

With the top seven U.S. card issuers--all banks--gobbling up roughly 75% of all credit card activity, a new Filene Research Institute white paper explores how credit unions can steal away more of the market, particularly from within their memberships.

Surprisingly, based on research using the “Wallet Allocation Rule,” it’s not value that drives usage, it’s the allure of rewards.

The research found that:

  • Despite higher satisfaction levels with credit union cards, credit union members still spend more on bank-issued cards ($821) per month than credit union-issued cards ($732); and
     
  • Credit union members who also possess bank-issued cards use the banks’ cards because of the rewards. Only 10% of members sought out a credit union card for rewards, compared with 50% who looked at a bank card.  

“Despite credit unions’ traditional strengths of low rates and fees, and overall consumer friendliness, only about half of existing members carry a credit union card,” the report’s authors wrote. “And those that do carry a credit union card tend to spend less on it than they do on bank cards.

“Translating satisfaction into growth will require reducing members’ perceived need to use the competition for rewards and prestige. That’s how to get deeper into their wallets.”

Credit Union Magazine - Winter 2019

Winter 2019

Alternative lending, compliance management systems, and ideas for boosting credit card portfolios are among the topics of Credit Union Magazine’s Winter 2019 edition.
App •  Digital Edition •  Subscribe

Trending

  • Compliance: Using alternative data in underwriting

  • Turn mistakes into success

  • Concerns over credit union-bank mergers, CRA ‘inaccurate, misinformed’

Tweets by CUNA_News

Polls

What's the pace of staff turnover at your CU?

View Results
More

Champion of America’s Credit Unions

Credit Union National Association is the only national association that advocates on behalf of all of America’s credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • About
  • Careers
  • Contact Us
  • Recommended Websites

Resources for

  • CUNA Board Members
  • Credit Union Advocates
  • Leagues
  • Press
  • Vendors