CUs need to get serious about growing their credit card business. That's the message Tim Kolk, president of TRK Advisors, Boston, gave CO-OP Financial Services Think 14 conference attendees during a session on sustainable payments revenue.
"A credit card can last decades," Kolk said, adding that its revenue return is three times more than any other kind of loan.
Kolk said CUs need to get away from emphasizing their cards' low rate. "It doesn't matter as much as we want it to," he said. Instead, he urged CUs to focus on understanding their member base's market segmentation and creating customized loyalty programs.