WILMINGTON, N.C.-Velocity Solutions is anticipating consumers will begin consolidating checking accounts-and accompanying debit cards-and is developing debit rewards programs to move that CU card to top of wallet.
Heather Kline, credit union product specialist for Velocity Solutions, sees the era of free checking going away as financials-especially banks-institute more fees to make up for diminishing revenue resulting from new regulations. She believes that the practice of consumers keeping two to three debit cards-and accompanying checking accounts-will stop."Consumers are going to have to start choosing," Kline said.
To ensure the credit union's card remains primary, Velocity is structuring debit rewards programs that not only encourage members-especially those not using their debit cards-to use their cards more. "We are helping credit unions to increase the number of active members," Kline said. "We target the inactive members and give them incentives to bring transactions back to the CU."
But the objective is to get members to use the debit card in the right ways."Our programs are designed to create behavioral changes, revolving around rewards or other incentives. If the goal is to get members to use their card more, you may reward them with a free gift if they swipe their debit card five times in June. It's an incentive to change the behavior versus just typical rewards that pay for transactions you are already getting from members." For info: www.myvelocity.com
