Credit union credit card programs stand a very good chance of benefiting under the CARD Act of 2009 if they maintain their traditional consumer focus and conservative underwriting, according to a new research paper from the Filene Research Institute.
"The implications for credit unions are exciting. Large-scale issuers may retain the competitive advantages of sophisticated automated underwriting and efficient back-office operations," wrote Filene Chief Research Officer George Hofheimer in his introduction to "The CARD Act: Opportunities and Challenges for Credit Unions."
"The CARD Act now limits many fees and penalties that are unfriendly to consumers, so large issuers will likely develop new ones to reenergize their profits. The right strategic place for credit unions is to focus efforts on simplicity and transparency while doubling down on collaborative credit card efforts to improve efficiencies. Doing so will allow credit unions to pick off the current and future malcontents fleeing boorish bank behavior," he added.
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