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Maximizing Your Credit Card Portfolio in a COVID-19 Environment

Dec 03, 2020

COVID-19 has created financial strain for millions of Americans. For example, 56 percent of consumers have reported difficulties paying bills due to loss of employment or income, and another 76 percent of small businesses have acknowledged cash flow shortages.

In the wake of this need, credit cards have the potential to become an important form of cash management. For instance, community banks can encourage small business customers to consolidate payments on their bank-issued cards, working to align the payment due date with monthly receivables. On the consumer side, customers can direct their purchases and bill payments to their credit card to make one aggregated payment each month—preferably timed to a pay period.

Credit cards as cash management tools offer a winning opportunity for community banks as well and can introduce new sources of non-interest, nonfee revenue. By growing card activity and offerings, community banks increase income in a product area that traditionally offers higher returns than any other non-interest product line at the bank.

And credit cards’ cash management benefits are only one example of how they can be leveraged to creatively meet today’s customer needs. ICBA Bancard excels at uncovering new opportunities to expand your card usage and offerings, and through a complimentary, one-on-one credit card portfolio analysis we can help you:

  • Create a more competitive offering. From your interest rates to your rewards program, how does your portfolio compare to industry standards? ICBA Bancard can review your program and provide recommendations to make you more competitive.

  • Increase portfolio activity (and revenue). By reviewing portfolio management metrics like usage, credit limits, delinquencies, and purchasing trends, ICBA Bancard can offer tips to strengthen both program promotions and operations. Changes like implementing online applications and targeted marketing campaigns can increase card usage exponentially.

  • Plan for the future. ICBA Bancard ensures community banks have access to best-in-class solutions to respond to current and forthcoming market changes. For example, we’ve recently partnered with MK Decision for online applications and Ondot for mobile wallet adoption to strengthen your digital offerings.

We want to help you maximize your credit card program. So, as you look at providing for your customers during this ongoing pandemic, reach out to request a one-on-one portfolio analysis with one of our staff experts. As your partner, ICBA Bancard can help you continue to evolve in innovative ways to serve your community’s needs now and well into the future.

Julie Hanson is executive vice president of product and relationship management at ICBA Bancard.