Optimizing your debit portfolio
Survey findings point to best practices.
As the payments industry undergoes change brought about by technological advancements, debit remains the second most frequently used form of payment behind cash. The U.S. debit card market accounts for approximately 70 billion transactions worth more than $2 trillion. Active debit cardholders use their cards nearly every day for purchases, to get cash from an ATM, to pay bills and for other activities that are critical to their financial lives. Those transactions, in addition to providing valuable non-interest credit union income, serve as a constant reminder of the relationship between the consumer and his or her primary financial institution, which is why credit unions must continue to keep a healthy debit portfolio top of mind.
As changing consumer behavior and competition from fintechs impact debit usage among members, credit unions will need to find ways to better understand and optimize their debit portfolios in order to drive penetration, activation and usage.
Earlier this year, CO-OP Financial Services and Mastercard commissioned a survey of 240 leaders from credit unions of various asset sizes and geographic regions to identify the strategies they are using to optimize their debit portfolio.
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