A CUInsight article illuminated some interesting trends in debit rewards based on data from the Pulse Debit Issuer study. One is the tremendous level of attrition that Financial Institutions face in checking account portfolios and by association, debit cards:
“Overall financial institutions (FIs) are losing accounts as fast as they’re gaining them. But community banks are struggling more than most FIs, losing significantly more than they’re gaining, while credit unions are performing the best. But as the study points out, even for credit unions “It is very difficult to grow when facing the headwind of so much churn.”
This article points to data suggesting that the right debit rewards helps to stem some of that attrition, and is driving many FI’s to put rewards as a top initiative:
Tucked away on the last page of data in the 2015 Debit Issuer Study is a look at what banking executives consider to be key challenges and opportunities. Among exempt FIs, 29% view debit card rewards as a key opportunity for 2015.
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
Read the full story here