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: