Financial institutions face significant challenges in today’s credit card market: risk concerns, complex servicing requirements, and the need for scale to remain profitable.
But as technology accelerates and consumer behaviors shift, leadership must ask: how do we stay true to our mission while evolving to meet modern needs?
Many credit unions and community banks face barriers in offering products that serve cardmembers across the credit spectrum. Operational constraints, risk concerns, and limited infrastructure can make it difficult to provide inclusive options — especially for those with challenged or limited credit histories.
A recent report from Elan and PYMNTS Intelligence uncovered that 60% of cardholders feel unclear about how credit card issuers decide whether to grant a limit increase. Among those who received an increase, 64% reported a more positive view of their issuer, with only 2.9% reporting a worse impression.
Denials, however, carry significant risks. More than one-third (35%) of rejected cardholders said their opinion of the issuer worsened, and nearly one-third (31%) reduced card usage afterward. Some (19%) stopped using the card altogether, while 20% applied for new credit elsewhere. Yet, the report notes that clear and transparent communication can soften the blow: many cardholders said they felt better about their issuer after a denial when reasons were well explained.
This is a critical opportunity for financial institutions to strengthen cardholder relationships with transparency, clear communications, and resources — and an ideal moment for leaders to take a deep dive into their objectives to determine the most effective path forward.
Partnering with an agent issuer like Elan Credit Card offers a strategic solution that transforms these challenges into opportunities.
Access To Scale And Expertise
Elan brings more than 50 years of experience in credit card issuing, providing partners with the tools and products of a large issuer — without requiring them to invest heavily or meet scale requirements. The Elan turnkey credit card issuing solution enables credit unions and community banks to market effectively, deliver high-value products, and remove credit card capital allocation and operational expenses from their balance sheet.
Risk Reduction And Capital Efficiency
Financial institutions that have sold their portfolio to Elan have reduced credit risk by an average of 32%, eliminated 45% of unused commitments, and freed up capital for other strategic initiatives. Additionally, loan servicing expenses dropped from 7.5% to 5% for Elan community bank and credit union partners.
Comprehensive Servicing And Cardmember Experience
Elan handles all aspects of account management — from origination and card delivery to activation and customer service — while providing partners with control tools for oversight. This ensures a seamless experience for cardmembers and reduces operational burdens for institutions.
Ultimately, Elan’s focus on keeping cards top of wallet, paired with our robust product suite, drives responsible spending and strengthens cardmember relationships.
For financial institutions seeking to reduce risk, free up capital, and create efficiencies, partnering with Elan is not just a solution — it’s a growth strategy.
