Skip to main content

Now Is the Time for CUs to Start Offering Commercial Credit Cards

Owning your own credit card program gives you the freedom to serve the needs of each member while deepening relationships.

By Anil Goyal | March 31, 2023
credit card program Source: Shutterstock.

Offering credit cards to commercial members has not been something that credit unions have prioritized in the past, but as the opportunity for commercial lending increases, credit unions are in a unique position to support their small business and commercial members.

As credit unions continue to pursue innovative ways to compete with larger financial institutions, providing their members with services that support their professional interests is a fantastic way to add value to member relationships and retain members. Offering credit cards to commercial members not only brings value to those relationships, it also brings monetary value to the credit union.

Provide Solutions to Unique Problems

Local financial institutions are known for their personalized service and close relationships with their members. As a result, small businesses prefer to work with their local financial institution. These businesses are important to their local economies and often have unique financial needs that require different solutions. Issuing credit cards allows credit unions to provide those solutions.

Credit unions can improve credit access and help their small business and commercial members with an additional source of funding to allow them to grow. A small business or commercial credit card can give businesses the ability to make larger purchases on demand, which can help manage cash flow. Small business and commercial cards often have detailed reporting features that make it easy for owners to track and manage their expenses. The increased control also gives owners a choice between central billing and individualized billing, as well as the opportunity to keep business expenses separate from personal expenses.

Deepen Your Relationships With Your Members

It is important to be able to provide unique and valuable services not just to consumers, but to small businesses and commercial members. Advanced services like virtual cards and expense reporting can be very valuable for business members to streamline their spending. It is crucial for credit unions to understand the new digital payment capabilities that are needed by small business and commercial members in today’s environment. Investing in programs that are going to meet their needs and add value to their banking experience will continue to build the trust and loyalty credit unions should be aiming for.

Credit unions already have a leg up on megabanks when it comes to relationship banking and serving as the primary provider of financial services, including credit cards, in their respective markets. Building a sustainable program requires tapping into relationship banking to build continued loyalty. Owning your own credit card program as a credit union gives you the freedom to make decisions and serve the needs of each member while deepening relationships, which leads to a well-rounded and profitable credit card program.

Many credit unions offering credit cards either launch their program with a limited product set and limited digital technology, or they outsource their credit card program to an agent bank. With advanced, fully digital capabilities that are now available at a low or no implementation cost, credit unions are in a great position to upgrade their credit card program. With more personalized service and local convenience, credit cards offer a differentiated opportunity for credit unions to deepen their community relationships. It is proven that members who have more financial products with a financial institution show improved retention and more activity across their products, leading to higher profitability. And small businesses benefit from relationship lending, which is core to community banking. What’s more, many credit unions that use relationship data in underwriting for credit cards have higher approvals and lower loss rates.

Anil Goyal Anil Goyal

Anil Goyal is CEO at Corserv, an Atlanta-based payment card issuing company.

Comments

Post a Comment

Please no profanity or political comments.

Popular posts from this blog

World's Happiest Country

  World's Happiest Country   Finland was named the world’s happiest country for the ninth consecutive year, the latest World Happiness Report revealed. Nordic countries—including Denmark, Iceland, Norway, and Sweden—also ranked in the top 10.  Analysts attribute Finland’s joy factor to its wealth, social safety network, and high life expectancy, among factors. Afghanistan maintained its place as the world’s unhappiest country. The results were based on answers from roughly 100,000 people in 140 countries and territories. Respondents were asked to rank their life satisfaction on a scale of 0 to 10. Finnish respondents gave an average life satisfaction score of 7.7; Afghans answered 1.4. The US, in 23rd place, reported an average score of 6.8. Explore rankings here . The report's authors cautioned this year that social media use is driving population-level drops in reported well-being among adolescents. Young English...
Post a Comment
Read Complete Article HERE>»

James Hunter, Executive Director of Credit Union Development for New Orleans Firemen’s CU, knows too well how expensive it is to be poor.

  NEW ORLEANS FIREMEN’S FCU 􀀁 METAIRIE, L   A passion for empowerment James Hunter knows too well how expensive it is to be poor. It’s what he sees every day as mortgage director and executive director of credit union development for $182 million asset New Orleans Firemen’s Federal Credit Union, Metairie, La., and executive director of The Faith Fund, a nonprofit partnership that seeks to provide a financial hand-up to the undeserved. It’s what inspires him to come to work every day and drives his passion of empowering people and setting them on the path to financial security. “Too many people are too far away from the starting line,” Hunter says. “Payday loans are a big business in Louisiana. Exorbitant fees and interest from payday loans drain more than a quarter of a billion dollars a year. Baton Rouge supports one of the top three pay-day loan markets in the U.S.” The Faith Fund was formed to counteract that. It’s a unique cooperative relationship between like-minded busi...
Post a Comment
Read Complete Article HERE>»

Lifesaving Companion Dog Takes On New Role With Injured Firefighter « CBS New York

Lifesaving Companion Dog Takes On New Role With Injured Firefighter « CBS New York : "NEW YORK (CBSNewYork) — A badly injured New York firefighter received a companion dog whose already saved people’s lives from fire. As CBS2’s Dave Carlin reported, disabled firefighter Tom Prin beamed as he was officially presented with his new canine companion Halona inside of a packed ceremony in Suffolk County. The former firefighter was one of 15 people receiving their canine companions. Prin was chosen because of what he’s been through — after fracturing his neck and back while responding to a Brooklyn fire. “When I was going from the third to fourth floor, the steps gave out and I fell through the fire escape,” he said. Prin has endured five spinal surgeries, but the Holtsville man will now be comforted by Halona who has quite the lifesaving resume herself." Click HERE to read full story and see video 'via Blog this'
Post a Comment
Read Complete Article HERE>»

What Trump’s ‘one big beautiful’ tax-and-spending package means for your money!

  Trump’s megabill will bring sweeping changes for household finances. President  Donald Trump  signed his “one big beautiful” tax-and-spending package on July 4 — legislation that will bring sweeping changes to Americans’ finances.  After the  Senate passed its version  on July 1, the House Republicans on July 3  voted to approve  the multi-trillion-dollar domestic policy legislation and send it to Trump’s desk for signature. The final bill makes permanent Trump’s  2017 tax cuts  while adding new relief, including a senior “bonus” to  offset Social Security taxes  and a  bigger state and local tax deduction . The plan also has tax breaks for  tip income , overtime pay and  auto loans , among other provisions.  The GOP’s marquee legislation will also enact deep spending cuts to social safety net programs such as  Medicaid  and food stamp benefits,  end tax credits tied to clean energy  an...
Post a Comment
Read Complete Article HERE>»

Boston Firefighters Credit Union can open membership to police officers

  By Deirdre Fernandes Globe Staff  February 12, 2015 The Boston Firefighters Credit Union will be able to open its membership to the city’s police officers and other law enforcement officials, a Suffolk County Superior Court judge ruled Thursday. Judge Mitchell Kaplan rebuffed an attempt by the City of Boston Credit Union to stop the firefighters credit union from expanding its membership and taking away some of its most lucrative customers: police officers, who are among the highest-paid city employees. The turf battle between the two financial institutions grew unusually emotional as they accused each other of distorting facts and invoking the events surrounding the Boston Marathon bombing to promote their cause. David Cotney, the state’s commissioner of banks, had approved the firefighters’ expansion plans in November. But the city’s credit union filed a court injunction to stop it. In his decision dismissing the case, Judge Kaplan said the commissioner’s decision ...
Post a Comment
Read Complete Article HERE>»

Celebrating 40 Years Of Credit Union Impact

From shaping the industry’s approach to data to framing the conversation around key industry issues, here’s a look at the impact we’ve made — and what’s to come Aaron Passman Let’s take a trip back in time. It’s Monday, April 1, 1985. You’re headed home from work at the credit union, one of more than 10,000 nationwide. You’re sitting behind the wheel of a Chevy Cavalier — the top-selling car in America at the time — with “We Are The World” piping out of the speakers. Not surprising, as it’s the No. 1 song in the country. You’ve got to make a stop at the grocery store, where the price of eggs has dropped to about 50 cents a dozen — roughly 20 cents cheaper than one month prior — but you’re already starting to think ahead to the weekend. Maybe you’ll head to the theater for “Police Academy 2,” and see what all the fuss is about — after all, it’s the most popular movie in America. But tonight you’re planning to sit down for the NCAA championship game to see whether Villanova can pull off ...
Post a Comment
Read Complete Article HERE>»

Dayton Firefighters FCU Taps New CEO

By Peter Strozniak CU Times Thomas Newton was appointed the new president/CEO of the $50 million Dayton Firefighters Federal Credit Union . Newton will replace Charles Passenthal who will retire in mid-October, according to a Sept. 18 prepared statement from the board of directors of the Dayton, Ohio-based cooperative. “We are very excited that Thomas is joining our team here at Dayton Firefighters Federal Credit Union,” Thomas Scott, board chair, said. “His dedication and proven track record will make him a strong leader for our credit union. We are looking forward to what he can bring to the credit union as president/CEO.” Newton worked as SVP for member services at the $379 million Universal 1 Credit Union in Dayton. He also served as EVP of operations of the $87 million FirstDay Financial Federal Credit Union in Dayton, which merged with the $313 million River Valley Credit Union in Miamisburg, Ohio, April 1. Newton has a Bachelor of Science degree from the University of Phoeni...
Post a Comment
Read Complete Article HERE>»

Average 30-Year Fixed-Rate Mortgage At 6.22%

MCLEAN, Va.--The 30-year fixed-rate mortgage inched up this past week, averaging 6.22%, Freddie Mac reported. "The 30-year fixed-rate mortgage edged up this week to 6.22% but remains nearly half a percentage point lower than the same time last year," said Sam Khater, Freddie Mac's chief economist. "Potential homebuyers are poised for a more affordable spring homebuying season than last with the market experiencing improvements in purchase applications and pending home sales.” The 30-year FRM averaged 6.22% as of March 19, up from last week when it averaged 6.11%. A year ago at this time, the 30-year FRM averaged 6.67%. The 15-year FRM averaged 5.54%, up from last week when it averaged 5.50%. A year ago at this time, the 15-year FRM averaged 5.83%. ================================================= Remember, you're not alone with  NCOFCU.org Join/Upgrade Check out some of NCOFCU's additional features: Annual Conference First Responder Credit Union Academy Finan...
Post a Comment
Read Complete Article HERE>»

Setting & Meeting Your 2018 GOALS - Dan Berger

A new year provides a fresh start and a clean slate and is often the time when resolutions and goals are established. If you are in the process of setting new goals – as I am – know that with an open mindset, achievement of all your goals is possible. "Goals provide clarity," writes Mareo McCracken, revenue leader of Movemedical. He explains that goal setting is about "combining the fortitude to achieve with clear thinking while making sense of your purpose and defining your ability to deliver value to others." However, goal setting and achieving also requires faith – or believing and hoping in something you can't see yet or that doesn't quite exist. For many of us, the No. 1 reason we don't achieve our goals is that we lack belief in ourselves and our abilities. I encourage you to read an article by Inc.com contributor Benjamin Hardy  that details the importance of having this kind of faith in yourself and delivers some tips on how to achie...
Post a Comment
Read Complete Article HERE>»