Where Do We Grow From Here?

Bill Mathis, EVP, MasterCard Worldwide

The credit union industry is facing an inflection point where the fundamentals are about to change. This changing environment doesn’t always lead to disaster—it can also create opportunities, according to Mathis.

There are tremendous opportunities created by the widespread use of plastics for virtually all types of household purchases. Debit volumes are expected to double from 2006 to 2010 and prepaid is expected to expand by more than 50% in the next three years.

Three quarters of U.S. citizens no longer see a need to keep cash on hand and more than half of consumers believe we will soon have a cashless society, thanks to the efficiency, convenience and security of plastics. Contactless technology and mobile banking will also help accelerate the move away from cash and checks.

In order to participate in this booming market, credit unions need to ensure that their cards meet member expectations in terms of features and rewards. It’s time to leverage purchasing data to develop or fine tune a card strategy for member segments, including underserved, Gen Y and small business. The challenge is always to get the right card in the hands of the right members.

Mathis closed by urging credit union leaders to voice their concerns to their representatives in the U.S. House and Senate about the negative impacts of the Credit Card Fair Fee Act prior to the May 15 hearing on Capitol Hill.