Has the time come to bring your credit cards in-house? How do you know? Credit unions today are proactively evaluating their credit card program needs with the goal to have more control of both member services and cost. While there's a lot to take into consideration, the right core processor can make it seamless and efficient. It gives the credit union the ability to better protect data, while also providing a better experience for members.

Credit unions have long realized that by offering credit cards they can further deepen member relationships. They serve as another point of contact and open up another line of business, while also delivering high yields. Moving credit cards in-house means being able to eliminate third-party processing, which reduces expenses and delays. The key to being successful when moving credit card processing in-house is to work with a technology vendor that can handle the day-to-day activities efficiently, while providing capabilities that are cutting-edge and keep you competitive and relevant.

American teenagers spend an astounding nine hours a day with digital technology, watching videos, listening to music and playing games. And if you think this is just a US phenomenon, consider that 90% of children under the age of 18 in China have access to a mobile phone, comparative to the US's staggering 88%. Specifically in the teen years, aged 13-17, a survey  by the nonprofit Common Sense Media found that 95 percent of U.S. teens have their own mobile device, spending an average of 7 hours a day on screentime. The impact on social norms has been immense: Teens are spending more hours with media and technology than they do with their parents, time in school, or doing any other thing. This complicates the task of educating teens on financial responsibility, an historically parental duty.

To date, credit unions have been faced with the choice of providing credit card processing in-house or outsourcing. Historically, only big credit unions ran in-house credit card processing. Smaller CUs shied away from credit card processing due to a variety of factors: It was expensive to do so in-house, and outsourcing was often difficult to integrate with the core. Furthermore, the rewards programs were not up to par with those of banks and larger FIs, which made them less desirable to members. Now, with increases in integration capabilities and decreases in cost, credit unions of all sizes are incorporating integrated processing capabilities. Here’s why credit unions big and small have opted for integrated credit card processing.

It is said "Two's company; three's a crowd," when two people are in a relationship and would prefer to be alone. Your credit union's tech revolves around the primary relationship of credit union and core processor, and when it comes down to the efficiency of your CU, this might be the relationship that matters the most. However, you may have many third parties crowding your space and taking away from time that should be devoted to activities which more directly impact your members. Vendors, suppliers, agents, brokers, specialists, consultants, and more are constantly vying for your attention as a credit union leader, and managing these relationships can be a job in and of itself. Leveraging third parties can help your credit union gain significant efficiencies, but managing them can be burdensome.

Consumer lending has many forms and credit cards are increasingly a profitable one for credit unions. Historically, the industry has looked to outside vendors for credit card management due to its inherent risks and complexities. As core processors catch up to technology advancements and credit unions acknowledge technology to be of crucial importance to survival, in-house card management is a reality for many credit unions. Below are two of the main reasons that credit unions are jumping on to the in-house credit cards trend, and one reason your members will love you for it.

We hate to be "that" person, but we told you so. As predicted, Card Not Present (CNP) credit card fraud continues to rise since the establishment of EMV technology (chip cards) last October. CNP transactions include any payment made where the card is not physically present, online, over the phone or mobile. While card present fraud experienced a 43% decrease, according to Visa, CNP fraud experienced a direct increase. The US Payments Forum 2017 report stated that the increase in security of chip cards forced fraudsters to focus their attention on an easier target: CNP transactions. The report concluded that this trend will continue into 2018 and consumers can expect fraud dollars to exceed $6 billion.

Spending money is almost certainly a daily event, and those credit and debit cards surely get a workout. In an environment where card fraud and security risk is increasingly prevalent, is your card management product ready for all that action? More importantly, how are you marketing your card controls to your members? Recent card control developments have come about that can not only help your members get a grip on all that activity but also allow them to more closely monitor exactly what is happening with their accounts. However, if members are not aware that they exist, and are therefore not using them, what good do they do? Take a queue from a Utah credit union who infused humor into their social media feed to illustrate to members the capabilities of their mobile banking app to protect them:

As Christmas decorations begin to fill the aisles and ads flood our news feeds, we embark on another holiday season. From holiday exchanges to presents for the kids, purchases are being made at an escalated rate. Even the most stubborn scrooge finds themselves frivolously spending during the holidays. Whether your members are early bird Black Friday shoppers or those who run through Target aisles on Christmas Eve, it's easy to forget budgets and overspend. As a credit union, it's important to keep your members in mind during the festive season and offer them the tools to keep their assets in line.