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Why Business Credit Cards Belong on Your 2018 Roadmap

posted by Connie Thienes, Product Manager on Thursday, January 4, 2018

Is your credit union building today for the future needs of your membership – both consumers and businesses? Here are a few reasons building a competitive business credit card program may be a great fit for your 2018 product roadmap.

  • Millennial opportunity. Nearly half (49 percent) of Millennials intend to start their own business in the next three years, and they’d be willing to do it in the next 6 months if they had the right tools and resources (i.e., credit). If even half of these Millennials follow through with their intentions, just think of the tremendous opportunity it will provide your credit union to meet their cash flow and purchasing needs.

  • Better member experience. It’s not uncommon for business owners to rely on their consumer credit card for corporate expenses, especially when they are first starting out. But as their business grows, so does the need for financial products to support that growth. The opportunity to better serve your existing members carries a much lower risk than launching a product for the objective of gaining new members.

  • Community focus. One effective way for credit unions to live out “People Helping People” is to help local businesses and, as a result, the people they serve. Small- and mid-sized businesses are well-aligned with the local nature of credit unions, and those who own them often carry an influential voice in the community.

  • Less competition. If you want to know how noisy the consumer credit card market is, check your mailbox. Chances are you’ll have an offer from a national issuer that would be hard for a credit union to beat. That’s not as much the case on the business credit card side. Particularly when it comes to small or just-starting enterprises, credit can be somewhat difficult to obtain.

Of course, just adding a business credit card program to your roadmap isn’t enough. You also have to commit the time and resources to build a product capable of delivering ongoing value in new and relevant ways to business owners. To learn what it takes to launch and sustain a great business credit card, check out the article Here’s the secret to a super sticky business relationship I recently wrote for CUInsight.

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