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Liquidity Pressures Impacting the Credit Card Industry
The current economic environment has many financial instutitions facing liquidity pressures causing senior leadership to take a closer look at balance sheet assets. External factors heightening these liquidity concerns include:
- Inflation and the associated rate hikes impacting balance sheet assets
- Slowing or negative deposit growth rates
- CECL implementation narrowing margins
These factors have forced many credit unions and community banks to realize that managing a credit card program is risky and requires a large amount of oversight. With the emerging liquidity concerns, rising delinquencies and losses, and the potential for an economic slowdown, or recession, there is a strong interest in an alternative solution to credit card self-issuing.
"Over the last 90 days we have seen an uptick in interest regarding our credit card program partnerships. During this time of increased market turbulence, we continue to deliver transparent assessments of how Elan can help many financial institutions."
Mitch Pangretic, Director of National Partnerships
With a few reports, Elan Credit Card can offer an analysis of your current credit card portfolio and a proposal outlining the value of an Elan partnership to your cardmembers. Our proposal contemplates your financial institution trading out the card portfolio risk and replacing the income with a combination of lower risk alternatives, including a substantial income stream from Elan.
Outsourcing your credit card program ensures your customers continue to have the products and technology in an uncertain environment — without the risk for your financial institution. Your staff will gain invaluable time to focus on providing financial wellness and customer support.
To receive your credit card portfolio analysis and learn how Elan can support your financial institution, complete the form below to get started.
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