New White Paper Examines What Credit Card Portfolios Really Earn

Bassett Capital Group has published a new white paper from Chuck Andrews examining a question many credit union leaders cannot answer with confidence: What does our credit card portfolio actually earn?

“What Your Credit Card Portfolio Knows That You Don’t” explores why common measures such as transaction volume, interchange income, and cards issued provide an incomplete view of portfolio performance. Understanding true profitability requires bringing together interest income, rewards, processing costs, fraud, charge-offs, network fees, and other expenses that are often reported across different areas of the organization.

The white paper identifies five places where margin commonly leaks from credit union card portfolios, including rewards ROI, inactive cards, credit-line management, and agreements that have not been benchmarked against current market conditions. It also outlines the product-level measures leadership teams should understand, including return on assets, revolving mix, and revenue per active cardholder.

Most importantly, the paper explains why profitability and the credit union mission are not competing priorities. A stronger card program can provide members with more affordable access to credit while generating earnings that can be reinvested in better rates, fewer fees, improved technology, and a stronger member experience.

Complete the form to download the complimentary white paper and explore the six questions every credit union leadership team should be able to answer about its card portfolio.