If your credit union offers a credit card to members, are you maximizing its full potential to generate interest income and interchange income—two great sources of income that many credit unions haven’t fully leveraged?
Many credit unions outsource their credit card servicing to a third-party provider. Gaining access to member credit card usage data and combining that with other member data can be either complicated or, if done at all, a manual process. Using a data analytics solution can help maximize credit card revenue in two streams.
First, by providing you with integration of other member data allows for accurate insights into transactional purchase behavior, balances and opportunities transfer balances on non-credit union bank cards to increase interest income. Keeping an eye on ACH payments to another financial institution’s card program is an opportunity to bring that balance over to your card, often at a lower revolving interest rate, to the delight of your members. And when opening new accounts or closing on a member loan can be a great time to offer a pre-approved limit credit card to those with appropriate credit scores. Having this data at your finger tips helps facilitate decision making and increase member profitability without incurring additional risk.
Second, by getting more credit cards into the “wallets” of your members and promoting card usage, you can drive higher levels of interchange income. Credit cards and non-cash purchases are on the increase, especially in light of the COVID pandemic. More consumers are shopping remotely and making purchases using credit cards. Seasonal shopping behaviors and promotions to move your credit card to the top of member’s wallets can be a smart strategy.
Having a 360-degree view of your members and knowing their spending patterns and behaviors, their credit score and other data will help you identify opportunities to increase credit card revenues. Using data to increase member credit card usage can give your credit union the lift is needs right now. You can and Cuery can help you get there—explore the opportunities that data analytics can provide.
How We Can Help
To put it simply, Cuery allows you to take advantage of one of your most valuable assets to provide broad business value: your data. We help solve your many of your key business challenges, like:
- Increasing member product usage & profitability
- Improving strategic decision-making
- Increasing back office efficiency
- Ability to compete effectively
What else can Cuery do?
🛒 More Products Usage
Members come to your credit union (and stay) for the products and services you offer to them. That could start with a checking account and be supplemented by a savings account or a credit card. Without a complete picture of what other products and services your members may need, you’re missing opportunities to provide them with other profitable products and services, like a car loan, a mortgage, a home improvement loan, or even a loan for an RV, motorcycle or recreational vehicle.
Perhaps more importantly, you’re not serving them in a way that builds a deeper, stronger, and possibly financially healthier relationship. Members expect that you “know them,” well enough to suggest and offer products and services that they will benefit from. Cuery can help you increase your credit union’s member relationships, product penetration, product usage and overall profitability.
Yep, Cuery can.
🔑 Generate More Loans
Every credit union today is looking to make more loans. Do you know which of your members is most likely to borrow from you? Wouldn’t it be great if you knew if your members had loans at financial institutions besides yours, especially if you offered a lower rate? No credit union wants to make bad loans. Knowing your members’ credit scores, credit risk and proclivity to borrow is important in today’s tight lending market.
Having a 360-degree view of your members and knowing their life stage, their spending patterns and behaviors, their credit score and other data will help you make wiser lending decisions, uncover lending opportunities that you may not have been aware of, and spend smarter with your scarce marketing dollars by knowing where and when those opportunities exist. Cuery can help you make more loans and spend less time and money to make them – by using the data you already have but haven’t been able to mine.