Health savings accounts (HSAs) have been around for nearly a decade. Having had significantly changed in the recent past, HSAs have adapted to the marketplace to fulfill Americans’ health care needs. As a result, both the number of HSAs, and the dollars in them, has risen sharply over the last nine years! With most of the key provisions of the Affordable Care Act (ACA) effective on January 1, 2014, a whole new segment of the population stands to benefit from HSAs. Under the new law, HSAs will grow faster than they have ever grown. This new growth will provide credit unions the opportunity to bring in new accounts, new customers, and new noninterest revenue. So, do how well do you know HSAs?
Guest post by Kevin O’Donnell, Vice President of Credit Issuance, Discover Network
As 2011 draws to a close, it has been another challenging year for credit unions and their members. Credit unions are focused on two goals: (1) continually seeking new ways to serve their members’ changing financial needs; and (2) growing membership specifically with Generation X and Y.
One product that is often overlooked during this exercise is the credit card program. A May 2010 Javelin Strategy & Research study asked credit union members which product they valued most. Ninety-four percent said credit cards.
For credit unions, the opportunity to revitalize their credit products begins at the acquisition stage, but continues through activation, card usage and loyalty. When revitalizing a credit portfolio, it is important to understand what members look for in a credit card product. Research has identified four key elements that members value most:
Guest post by Kevin O’Donnell, Vice President, Discover Network
How well do you know your members? According to a recent Millward Brown study, the average age of a credit union’s members is about 46 years old. Fifty-one percent are women, and more than half earn between $25,000 and $75,000 per year. Nearly 60 percent are married, and about a third have children living at home.
But here’s something to chew on: Just 8 percent of credit union members are between 18 and 24 years old, the coveted Millennial demographic.
You could say that small statistic doesn’t matter much. After all, as the Millennials age, they’ll likely join credit unions in numbers to match their parents and grandparents — or not.