What measures should community banks consider adopting to help generate success in the small business credit card space?
To help take advantage of the large small business credit card opportunity, community banks should take a more proactive approach to the business. By doing so, they will not only benefit from the direct economics associated with the credit card itself, but from the relationship that helps the deepening and stickiness benefits that credit cards provide.
Community banks should consider:
- Developing and deploying a more competitive offering (i.e., pricing, rewards)
- Establishing appropriate underwriting standards (e.g., take into account broad relationship and business information)
- Marketing the offering(s) to drive shopping, awareness, and consideration (e.g., direct marketing, in-branch promotion, branch personnel education)
- Offering basic digital capabilities (i.e., online/mobile application, card information integrated into online banking)
- Developing product management strategies (e.g., activation and usage programs, line of credit management programs)