Credit unions are always looking for ways to attract younger members and branch out from their usual circles. Lately, there’s a fresh opportunity popping up on college campuses: university-branded payment card programs.
These cards are linked to athletics, alumni networks, and even Name, Image, and Likeness (NIL) initiatives. Brian Scott, co-founder of RAI Partners, says these programs give credit unions a shot at connecting with a passionate, loyal, and often younger crowd.
Let’s dig into what’s really going on here—and see how credit unions might use these university partnerships to grow their membership.
University-Branded Payment Card Programs
University-branded payment cards are catching on as a way to support athletic departments, engage alumni, and build stronger ties with students and fans. The idea’s pretty simple: a slice of the interchange revenue from card spending gets funneled back to the school’s athletic department or NIL efforts.
For universities, it’s a steady funding source. For credit unions, it creates a strong connection with alumni and fans—people who care about the school and want to show it.
The Rise of NIL and Athletic Programs
Athletics and NIL programs are especially hot right now. Universities want to pay athletes, and these card programs are one way to make that happen.
Every time someone uses a university-branded debit or credit card, a percentage goes back to the athletic program. That’s money for athletes and a tighter bond between the university and its supporters.
“If I’m going to switch financial institutions, I’m going to switch somewhere that’s tied to the university I’m a fan of,” Scott said. Makes sense, right? Loyalty runs deep when it comes to alma maters.
Alumni Association Opportunities
Alumni associations are another big opportunity for credit unions. These groups have massive lists of graduates, many of whom are hitting their prime earning years.
If you combine alumni and athletic partnerships, you’ve got a marketing engine that’s hard to beat.
The Power of Alumni Networks
“If you can get the alumni association and the athletics program working together, that’s gold,” Scott said. Alumni associations have all the contacts and the trust of graduates—people who are often successful and still feel a strong pull to their university.
These folks are exactly the type of members credit unions want: younger professionals who need mortgages, investments, credit cards, and more. Plus, alumni are often looking for ways to give back to their school.
Offering university-branded cards makes it easy for them to support their alma mater and get access to solid financial products at the same time. It’s a win-win, or at least it seems like one.
Student Card Programs
Student card programs are another angle, though they’re a bit trickier to make profitable right away. Credit unions have wanted to reach Gen Z for a while, but student-focused cards come with more rules and usually bring in less revenue at first.
Long-Term Investment in Students
“Student cards are really tricky,” Scott admitted. Students don’t have much money, and there are extra restrictions to deal with.
Still, credit unions might want to think of student programs as a long play. Over a decade, those young members graduate and start making real money.
Some institutions are pairing student cards with checking, savings, and credit-building tools. That way, students can get their financial footing early on—and maybe stick around as loyal members when they’re further along in life.
University Business and Purchasing Cards
There’s another angle that doesn’t get talked about as much: university business and purchasing cards. Universities move millions every year through employee travel and expense programs, procurement cards, and contractor payments.
If a credit union can tap into even a chunk of that spending, it’s meaningful revenue.
Successful University Business Cards
“University business cards are incredibly successful,” Scott said. Sometimes, these programs loop back to athletics, sending a percentage of spending to help fund athletes.
That creates another link between the university and the credit union. Offering business and purchasing cards means credit unions can get in on significant daily transactions—and strengthen their presence on campus.
Multiple Programs, Single Relationship
Scott figures the best bet is to combine several programs under one university relationship. “Being able to tie athletics, alumni, and university business cards together gives credit unions the flexibility and profitability to ultimately pursue student card programs,” he said.
Comprehensive University Partnerships
Honestly, the real value goes beyond the card revenue. University partnerships open the door to communities that are already engaged and share a strong identity.
“A lot of credit unions are getting really interested in these programs because they tie themselves into a whole different member base than what they’ve had in the past,” Scott said. “It’s a great way to grow new members, a great way to grow younger members, and university fans and alumni tend to be extremely loyal.”
RAI Partners works with credit unions on these university card programs, helping them negotiate deals and sometimes running the programs behind the scenes—while keeping the credit union’s brand out front.
Several credit unions have started expanding their university partnerships. Community Choice Credit Union in Iowa, for example, has signed multiple university-related programs lately.
The Future of Credit Union Growth
Credit unions are feeling the heat as competition heats up for deposits, loans, and—let’s be honest—the attention of younger folks. University partnerships might be more than just a fancy card strategy.
They could open up a whole new way to grow membership. Tapping into the energy and loyalty of university communities? That’s a real shot at attracting a diverse, engaged crowd who might stick around for the long haul.
If you’re curious about how universities could be the next big thing for credit unions, check out the full article on CUToday.info.
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