Credit Union Card Loyalty Drives Deposit Growth

Credit unions have long competed on low fees, local service and member trust, but being a customer’s primary financial institution does not guarantee top-of-wallet status. Card usage matters because it generates interchange revenue, transaction data and opportunities to deepen deposit relationships. PYMNTS Intelligence and Velera say richer, more targeted rewards could help credit unions convert institutional loyalty into everyday spending, particularly in discretionary categories where national-bank cards remain stronger.

The July 2026 study surveyed 14,218 consumers and 3,529 small and mid-sized businesses. It found that 61% of consumers considered a credit union their primary financial institution, while only 48% of credit union cardholders used that card most often, versus 69% for national-bank cardholders. Rewards were cited by 44% of credit union cardholders as a leading reason for choosing a card, pointing to travel, dining and retail as key areas for upgraded offers.

Credit unions have built strong member loyalty through local service and trusted financial relationships, but that affinity does not always translate into everyday card spending. PYMNTS Intelligence’s 2026 Credit Union Tracker found that credit union cards perform relatively well for recurring bills such as rent and mortgages, yet lose ground when consumers actively choose a card for travel, dining, retail or electronics — categories where national banks’ rewards programs carry more influence.

PYMNTS reported on Aug. 26, 2026, that 61% of credit union members consider their institution their primary financial provider, while 87% of those consumers are very or extremely satisfied. Still, only 48% of credit union cardholders put the card at the top of their wallet, compared with 69% at national banks. Rewards influence the preferred-card decision for 44% of credit union cardholders, suggesting personalized cash back, merchant offers and category-specific incentives could help narrow the 21-percentage-point gap.

Credit unions are turning transaction histories and payment patterns into a sharper view of members’ financial behavior, building on the trust that underpins their cooperative model. The data can reveal shifts in cash flow, spending and borrowing needs, allowing institutions to become more involved in everyday financial decisions. The strategy also aims to deepen long-term relationships and make credit-union cards a more habitual payment choice.

The latest report says member behavior is increasingly being used as an early warning system, helping credit unions identify potential financial strain or emerging product needs before members seek assistance. Institutions can then time outreach, support and offers more precisely. The report title and event summary did not name a specific credit union or provide an implementation date, transaction value, membership count or performance figures, leaving the financial impact unquantified.