Unlock Brand and Community Growth with a Strong Credit Card Program

Credit unions provide essential financial services, but few products match the daily visibility of a credit card. Every swipe or tap is a moment to showcase your institution’s values and community commitment. Yet, a significant gap exists: while 61% of credit union members consider their institution their primary financial partner, only 48% keep its card as their top choice. Closing this gap requires viewing the credit card not just as a lending tool, but as a core brand and community asset.

Need to Know

• The credit card is the most frequent brand touchpoint, offering constant daily exposure for credit unions.
• Despite strong member loyalty, many credit unions lose top-of-wallet status to competitors.
• Competing with national issuers on rewards is ineffective; focus instead on local partnerships with merchants, employers, and sponsorships.
• Successful programs start with brand and member strategy to ensure the card reinforces community ties.

Key Insight: Many institutions evaluate card programs solely on revenue, underestimating their power to strengthen brand and local connections.

Credit Cards as Daily Brand Assets

In a crowded marketing landscape, credit cards deliver unmatched, repeated brand impressions. As Karen Leland, founder of Sterling Marketing Group, notes, “There are no other brand assets that have as many touch points. It literally lives in the customer’s purse, wallet, or pocket and gets accessed multiple times a day.” This daily interaction builds familiarity and loyalty—but only if members use your card. When they reach for a competitor’s card, those valuable impressions go elsewhere.

Leveraging Local Strengths Over National Competitors

Rather than matching large banks on rewards, credit unions can thrive by embracing their local advantage. National issuers must design one program for all markets, but credit unions can create tailored experiences for specific communities. For example, offering cash back at local businesses or exclusive access to community events builds deeper relevance. Kristin Llewelyn, founder of The Sponsorship Company, explains, “The opportunity is to use the card as a bridge between the institution, the partner, and the member.” This approach turns transactions into support for local economies and causes.

Key Insight: A recent poll found that credit union members rate their institutions 17 points higher than bank customers on caring for the local community, highlighting a receptive audience for such initiatives.

Start With Brand and Members, Not Just Card Features

Strong programs begin by aligning the card with the credit union’s brand identity and member needs. Chip Griffith, chief member experience officer at OneAZ Credit Union, advises, “Start with the member and the brand, not the card product. Ask what you want members to experience and how the card can reinforce that promise.” Avoid common pitfalls like siloed teams or stale programs that no longer reflect current member habits. Regular reviews prevent “brand drift” and keep the program vibrant.

Conclusion: The Local Community Advantage

The greatest opportunity for credit unions and community banks lies in local impact. By designing card programs around local partners and merchants, institutions keep their brand tied to the community’s fabric. This strategy transforms routine spending into meaningful engagement, fostering loyalty that competitors cannot easily replicate. As Griffith says, “The bigger opportunity is creating something that is difficult to copy because it is rooted in your relationships and your community.”

Source: thefinancialbrand.com