3 Credit Card Goals for Your Credit Union in 2022
With the arrival of a new year comes setting the yearly goals for your credit union. Among those goals are what you want your credit card program to achieve, and 2022 is looking to be an interesting year for credit card lending. The pandemic is raging on, and with inflation rising at its fastest pace in 40 years, credit unions have a lot to think about when it comes to crafting this year’s programs and products.
Spending Habits
Due to continued disruptions to the supply chain and rising inflation, spending numbers may not be great at the beginning of the year, but the hope is that after the current COVID surge subsides in the warmer months, spending will begin to normalize by the second quarter of 2022, according CO-OP’s SmartGrowth experts. Inflation will continue to be a problem throughout the year, meaning consumers will be looking for deals and saving money wherever they can, particularly regarding, as Senior Payments Advisor at CO-OP John Patton put it:
“As ticket amounts increase, consumers will look for less expensive alternatives. I expect more families will cook and migrate away from prepared food delivery. The grocery store will be their main place for buying weekly groceries. The wild card is COVID as those areas experiencing a rise in cases will opt for pickup and/or delivery versus in-store shopping.”
The willingness to return to brick-and-mortar isn’t just relegated to just groceries. Open-air shopping centers and strip malls have quickly become favorite places for many consumers to do their shopping due to them having plenty of outdoor space for social distancing and to get some fresh air. There’s also the current benefit of not having to deal with slow shipping times due to the ongoing supply chain issues, and it was this very situation that we saw during this past holiday shopping season.
Consumers Seeking More
Credit unions also must contend with a changing credit card market, and many consumers today are taking an even closer look at what a card has to offer. According to a survey from PYMNTS.com, 64% of active credit card users look for a minimum of four different features when choosing a credit card. Additionally, those living with children and individuals living paycheck to paycheck are the most demanding when it comes to what they want and expect out of their cards. Those living with children are particularly discerning and consider as many as six factors when choosing a card.
As for the factors influencing consumer decisions themselves, some of the most important ones include:
Rewards programs
Safety measures taken
Tools for improving credit scores
Interest rates or fee applied
What Should Your Goals Be?
The needs of credit union members continue to shift as the pandemic continues to affect all our lives. Credit unions must be aware of these changing needs and continue to watch shifts in the market. With that in mind, consider these goals for 2022:
Meaningful Rewards: As stated previously, many credit card holders are thinking about what kinds of rewards a credit card offers. Make sure that those rewards are ones that not only meet their needs and preferences, but that they are also ones that truly have value for your members. You also need to remember that those needs could shift at any time, especially since we are still in the throes of the pandemic, and it’s still unclear exactly when we can officially say we are truly in the “new normal,” so keep monitoring your programs and make changes when needed.
Balance Plastic And Digital: While consumers are making the choice to go out to physical stores again and using plastic to pay, that doesn’t mean that digital payment tools and channels will eventually be down for the count! Both plastic and digital will have a role to play this year; your credit union will just need to figure out what those roles will be and why you want to offer these services to your members. The payment market has become more crowded than ever, mostly on the digital front, so be sure you know what you’re selling and that it stands out from the crowd!
Know Your Members’ Needs: Of course, addressing and meeting the needs of members is a no-brainer; it’s the whole point of what credit unions are and what they do. What I mean is that credit unions need to increase their awareness of member needs, and the emerging trends previously stated emphasize this. What are members doing with their credit cards? What does this mean? How can this information be used to reach our goals for the year? These are the questions credit unions should be asking themselves throughout 2022 as member needs change and evolve.
