How will the 2009 C.A.R.D. Act affect credit unions? The industry-wide return on assets of credit cards plunged from 3.3% in 2006 to 1.4% in 2008 and huge issuers will need to recoup those profits in the new environment. Author Adam Levitin calls the act “the most significant piece of credit card legislation in a generation” and highlights implications and strategic options for credit unions in this report:
- At just 5% of overall credit union lending, credit cards are not core to most credit unions’ lending. However, members who use a credit union credit card carry higher balances and have fewer dormant accounts than bank card users.
- Credit unions should focus efforts on simplicity and transparency while doubling down on collaborative credit card efforts to improve efficiencies. Doing so will allow credit unions to pick off the current and future malcontents fleeing boorish bank behavior.
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1
what great info. Thanks.
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