PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Credit Unions and Alumni Card Programs: Start of a Trend?

By Ken Paterson
July 21, 2011
in Mercator Insights
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
NFC mobile payments using smartphone

NFC mobile payments using smartphone

A newly released Fed report on collegeaffinity programs (http://www.federalreserve.gov/BoardDocs/RptCongress/creditcard/2011/downloads/ccap_2011.pdf),which was mandated under the CARD Act, notes the surprising factthat three out of four new issuers of alumni programs are creditunions.

Alumni programs came under scrutiny as part of the broaderexamination of card issuing to students under the CARD Act. But thetruth is that many of these programs are small with limited growthopportunities to be attractive to large issuers. But credit unions,with local connections that might align well with a regionaleducational institution, could prove to be a better fit. In fact,many of these new issuers are credit unions affiliated with theiruniversity partners.

While the report notes that FIA Card Services (legacy MBNA) lostthe most college programs, FIA is still by far the largest issuerin the space. And overall, there were a net 41 fewer collegeprograms at the end of 2010, indicating continued fallout from thescrutiny on these programs, as well as their economics and ofcourse the post-recession environment.

As issuers reexamine their portfolio economics, and educationalinstitutions reexamine their partnership agreements, there could besome new players in the market. Mercator will be reviewingdevelopments in the small issuer market this year; this may be thestart of one new strategy for small issuers and credit unions inparticular to jump start their credit card issuing programs.

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: DebitMerchant AcquiringMobile PaymentsPrepaidSelf Service and ConvenienceSocial Media

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    Making Real-Time Payments a Reality

    Fulfilling the Promise: Making Real-Time Payments a Reality

    July 10, 2025
    mortgage

    The Rich Benefits of In-House Payment Systems

    July 9, 2025
    digital cards

    Beyond Plastic: Why Digital Cards Are the Future

    July 8, 2025
    What Premium Card Overhauls by Chase and Amex Reveal About the Credit Card Market

    What Premium Card Overhauls by Chase and Amex Reveal About the Credit Card Market

    July 7, 2025
    Rewire Acquires Imagen, Looking at Prepaid Cards for Migrant Workers

    Smells Like Team Spirit: What Makes Cobranded Credit Cards Work

    July 3, 2025
    uk banking outages

    New Continuous Strategies for Battling Account Takeovers

    July 2, 2025
    Fraud Monitoring

    What to Expect When Nacha’s Fraud Monitoring Rules Take Effect

    July 1, 2025
    payments

    Don’t Just React to What’s Next in Payments—Anticipate It

    June 30, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result