How to use prepaid cards to expand your credit union’s market share

first_img 3SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,Naomi Anderson Naomi Anderson is Vice President of Prepaid for LSC. In her current role, her team manages the day to day program support, customer service functions and implementations as well as … Web: Lsc.net Details Successful business growth starts with offering the right product or service for your audience’s needs. In the financial services market, the versatility and convenience of prepaid cards make them a great way for credit unions to break the ice and start new member relationships or grow current ones. Below are four strategies to help your credit union take full advantage of a prepaid program and grow market share.Market DevelopmentThis strategy is for credit unions already offering a prepaid card program and involves using current prepaid offerings to reach new audiences. Where are some good markets to start? One of the fastest growing markets is the Hispanic market. An ICUL sponsored study by Coopera shows Hispanics make up 20% of the U.S. population, growing 83% since 2000. Hispanic Market Facts from Coopera:Hispanic households have the second-highest expected lifetime spending of all U.S. ethnicities.Family-based spending on items like food and clothing is greatest among Hispanics. As a popular budgeting tool, prepaid cards are a relevant offering to this promising market and can help credit unions build loyal members among them.Prepaid cards are also a great venue for reaching new, younger demographics. Parents often use these cards to teach children financial responsibility. Prepaid programs with mobile services are particularly attractive to tech-savvy young people looking to have total access to card information on the go.Product DevelopmentIf you’re not already offering a prepaid product, now would be a good time to start. With the game-changer of COVID-19, cashless payment methods are becoming more popular. Prepaid cards can help credit unions better serve their current members. Members can use prepaid cards to budget long-term or special occasion spending, receive tax refunds, and go cashless without incurring interest rates or risking account information. Credit unions offering gift cards also become an easy one-stop shop for members during the holidays or for any special occasion.Market PenetrationPrepaid cards sporting a credit union’s logo create a strong branding opportunity. Branded gift cards are particularly effective marketing tools since members may share them with non-members, growing awareness. By offering this popular product, credit unions can also be more competitive in the financial services market. Promoting prepaid cards through your website, emails, social media, or events can draw in more sign-ups from people looking for special occasion gifts or the convenience of reloadable prepaid cards.DiversificationIf you don’t have a prepaid program, but would like to grow in new markets, you can diversify your product offerings and add on a prepaid program to offer in that new market. You may want to seek operational and marketing support from a service partner to make this launch successful.SummaryTo achieve growth, credit unions can choose from many strong strategies. These strategies are most impactful when combined with an offering that meets an audience’s needs. For credit unions, prepaid cards are a powerful way to achieve this balance and grow market share.Are you ready to take full advantage of a quality prepaid program to grow your credit union’s business? LSC has been a trusted credit union partner for over 50 years. To learn what LSC can do for your credit union, contact the LSC sales department at 1-800-942-7124.last_img read more