More Consistent Tracking of Program Performance Will Benefit Your Credit Card Program

Although credit cards are generally one of the most profitable loan products, many credit card programs are not being proactively managed by credit unions, despite the intense market competition. However, more consistent monitoring of credit card program performance can lead to increased account usage and higher retention. For example, keeping track of individual account usage can help identify inactive accounts before they are closed. Steps can then be taken to try to save these accounts, or at least find out why they are being used less frequently.
However, only about half of the credit unions responding to a recent Callahan & Associates survey say they currently track monthly card usage. Among those that do, 65 percent of their credit card accounts have had a transaction within the last 30 days, on average.
A higher percentage of respondents, 63 percent, are tracking card profitability separately from other loans:

 
 

Although credit cards are generally one of the most profitable loan products, many credit card programs are not being proactively managed by credit unions, despite the intense market competition. However, more consistent monitoring of credit card program performance can lead to increased account usage and higher retention. For example, keeping track of individual account usage can help identify inactive accounts before they are closed. Steps can then be taken to try to save these accounts, or at least find out why they are being used less frequently.

However, only about half of the credit unions responding to a recent Callahan & Associates survey say they currently track monthly card usage. Among those that do, 65 percent of their credit card accounts have had a transaction within the last 30 days, on average.

A higher percentage of respondents, 63 percent, are tracking card profitability separately from other loans:

 

 

 

Sept. 15, 2003


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