The FLEX Connexion Blog

The Ultimate Guide to Card Preferences by Generation [+Free eGuide]

Written by Preston Packer | Aug 29, 2024

In the ever-evolving world of financial services, understanding your members' preferences is key to staying ahead. Your credit union, with its unique member-focused approach, has a golden opportunity to tailor its offerings to meet the distinct needs of different generations. But how do you know what each generation truly wants from their credit cards?

With evolving technology and changing financial behaviors, credit card expectations are swiftly evolving. We aim to align your card offerings with what your members value most through providing  generational preferences.

 

 

Top 5 Card Features Per Generation

By understanding and catering to credit card preferences, your credit union can enhance member satisfaction and loyalty, ultimately gaining a competitive edge in the financial services landscape.

What Card Features do People Want the Most?

  Gen Z Millennials Gen X Baby Boomers
No Annual Fee 29% 19% 30% 45%
Low Interest Rate 30% 28% 31% 25%
Rewards Program 11% 14% 17% 11%
High Credit Limit 15% 19% 10% 5%
Introductory Offer/Welcome Bonus 2% 6% 5% 4%

Data Source: the ascent

Main Takeaway

Tailor your card offerings to meet the unique needs of your members.

This proactive strategy not only enhances member satisfaction but also establishes your credit union as forward-thinking and member-focused entities in the dynamic financial services landscape.

Keep reading: Do Reward Programs Actually Build Loyalty?

 

Top 5 Card Deal Breakers

Understanding the factors that could deter a member or potential member from signing up for a credit card is crucial. Without being aware of these deal breakers, your card strategy may fail to effectively attract and retain customers.

What Factors Rule Out a Credit Card Option for You?

  Gen Z Millennials Gen X Baby Boomers
Annual Fee 25% 26% 36% 46%
High Interest Rate 35% 39% 29% 30%
Hire Credit Score Requirement 22% 22% 18% 9%
Non-competitive Rewards/Cash Back 7% 7% 9% 10%
No or Non-competitive Introductory Offer 11% 5% 8% 4%

Data Source: the ascent

Main Takeaway

If your credit union is struggling to attract individuals to apply for your credit card, it may be because of these five deal breakers. Take a closer look at whether your annual fee is hurting more than helping your credit union's overall success.

By identifying these key factors that discourage members from obtaining a credit card, you can effectively boost member retention and prevent them from seeking out alternative credit card options.

 

Number of Credit Cards per Generation

There is a limited number of spaces in an individual's wallet. The number of cards each person carries reflects the level of competition your credit union faces.

How Many Credit Cards Do You Have?

  Gen Z Millennials Gen X Baby Boomers
0 16% 19% 25% 17%
1 37% 31% 29% 30%
2 29% 30% 26% 24%
3 10% 12% 12% 16%
4 7% 8% 8% 13%

Data Source: the ascent

Main Takeaway

After looking at this table, you may feel concerned about the competition to secure a spot among the limited number of credit cards that members carry. But this table can be helpful to guide your card strategy. 

If a significant number of your members do not utilize credit cards, it may be beneficial to explore other services that can enhance their banking experience and encourage loyalty.

Consider offering options such as debit card rewards, digital card integrations, and a user-friendly mobile banking app to better cater to their needs.

 

Serve Your Members Better with FLEX Card Technology

Across all age groups, FLEX card technology offers a powerful solution to enhance member card services. By incorporating rewards programs, seamless digital wallet integrations, and valuable member data collection, your credit union can gain a competitive advantage in attracting and retaining members.

Ready to explore FLEX's card solutions? Just click the button below for a free eGuide.