A naukri.com initiative
Pymnts
1w
339
Image Credit: Pymnts
Small Banks and Credit Unions Turn to Direct Issuing for Top-of-Wallet
- For banks and credit unions looking to modernize, i2c Senior Vice President of Global Product Management Dan Hanks has said self-issued credit cards are no longer a luxury but a necessity.
- Self-issued credit cards give community banks and credit unions the tools to meet digital-first, user-centric financial environment and modern consumers' expectations.
- Banks want to offer more competitive products, increase profitability and claim ownership over the customer experience, particularly credit unions that focus on member satisfaction.
- For decades, community banks and credit unions partnered with third-party issuers to offer credit cards, often ceding control over fees, rewards structures, and cardholder engagement.
- Self-issued cards allow community banks and credit unions to enhance profitability, create digital-first offerings and own the cardholder experience by taking control of their credit card programs.
- Smaller banks, some of whom thought they were too small before, now have a clear path to self-issuance.
- Self-issued credit cards for mid-sized banks and credit unions can generate recurring and predictable revenue streams as interest rate uncertainty rises and margins are squeezed.
- The key is finding a partner that delivers the services end-to-end as credit cards are largely a scale business.
- Ultimately, self-issued credit cards are more than just a new product for banks and credit unions. They’re a strategy to stay relevant in a competitive, digital-first market that's largely led by personalization and meeting customers where they are.
Read Full Article
20 Likes
For uninterrupted reading, download the app