Credit unions have traditionally seen card usage as a straightforward way to boost revenue—more transactions mean more interchange income. New data reveals this view overlooks a larger opportunity: members who consistently choose their credit union card deposit more, making top-of-wallet status a sign of stronger financial engagement.
Deposit growth follows card loyalty
A study conducted with Velera showed members who prioritize their credit union card experienced a 30% rise in the share reporting higher deposits since 2024. Small and medium-sized businesses using these cards as their primary payment method saw a 28% increase. These gains surpassed all other measured segments.
This change highlights how card usage extends beyond transactional value. When members repeatedly select the same card at checkout, they demonstrate a behavioral preference that checking-account designations alone fail to capture. That preference aligns with broader financial activity, including deposit growth.
Credit unions hold an existing advantage: six in 10 consumer members consider them their main financial institution, and satisfaction rates remain high. However, only 48% of credit union cardholders use that card as their top choice, compared to 69% of national-bank cardholders. The gap widens among SMBs, where 75% favor national banks versus 49% for credit unions.
The issue goes beyond lost interchange fees. National banks have invested years and billions into systems that turn card ownership into habitual use. Credit unions often secure the account without securing the transaction. The trust they’ve built doesn’t always translate into daily spending habits, leaving potential revenue untapped.
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Trust doesn’t always mean top-of-wallet
Perception plays a role in this disconnect. Credit unions enjoy high trust—87% of members whose primary institution is a credit union report being very or extremely satisfied. Yet satisfaction doesn’t guarantee action. Members who use their credit union card as their main payment method report slightly higher satisfaction than those who default to another issuer’s card. This indicates the relationship exists but isn’t being fully utilized.
The economics of card competition have evolved. Winning a transaction now involves more than interchange revenue. It’s about strengthening the institution’s role in a member’s financial life. Every swipe presents a chance to deepen the relationship, and credit unions recognize that top-of-wallet status may be the most reliable sign of engagement.
Solving this isn’t straightforward. National banks benefit from scale, large marketing budgets, and decades of experience turning cardholders into habitual users. Credit unions rely on trust, local connections, and a member-focused approach. The task ahead is bridging the gap between loyalty and behavior—converting satisfied members into active ones.
For now, the numbers are clear: members who choose their credit union card first also drive deposit growth. The next step is turning that insight into action before national banks solidify their dominance in this space.
