BOSTON — A new report from the Aite Group forecasts that card issuing banks will turn away from the direct mail advertising that has characterized their card marketing efforts for the last three to five years. Direct mail advertising has been the chief way many banks have competed against credit union cards over that time, CU card experts have said.

The financial services research firm surveyed 12 of the biggest bank card issuers as the basis for its report.

The survey found that most of the 12 banks believed that branch marketing would provide the best marketing channel going forward.

"Only three of the issuers expects co-brand partners to be a successful method of new

account acquisition," the report said, "while two think that agent banks will be successful, and two cling to the hope that direct mail will be a lucrative acquisition channel."

Aite criticized the shift to in branch marketing, observing that doing so will take the banks out of the running for younger consumers who might not have checking accounts with the bank but are significant card users.

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