Banks Opening Way for CU Cards
The credit card market in the wake of the Credit Card Accountability, Responsibility and Disclosure Act may be the most favorable ever for credit union card programs, according to a leading credit union card analyst.
"Credit unions have a tremendous opportunity to increase their overall bottom line with the credit card product," said Ondine Irving founder and CEO of Card Analysis Solutions. "Gone are the days of trying to cross sell to existing members-this is the time to gain new members, [and offer] new credit cards and other CU products and services," she said.
Irving joined other card industry analysts in their estimate that while the CARD Act has made aspects of issuing cards more difficult and expensive in some ways, the impact on the industry has been magnified by the reactions of most of the biggest card issuers to them.
"The games the banks are playing are affecting all cardholders regardless of credit score-even the most credit worthy consumers are seeing rate increases and new annual and inactivity fees," Irving said. "Credit Unions have never had this type of open opportunity or national media exposure, ever."