Depending on how you measure, the average American has between two and four credit cards. Most people with a bank or credit union have a debit card. That’s a lot of plastic (or metal) in a wallet.
But most people don’t use all of their cards – at least, not all the time. They might put specific purchases on one or two, then put the rest on another. They might have a backup card that almost never gets used.
Generally, they’ll have one default card. This card gets all of the charges — or the bulk thereof. In fact, this default card sees an average of over $850 per month in recurring charges alone.
The other cards aren’t making much money. The default card is. The default card is top of wallet.
Here are five ways your financial institution can get your card top of wallet.
1. Visibility and Transparency
It’s tough being savvy with money. One of the reasons people have such a hard time saving is because they don’t realize how much they’re spending. If you can help people see how much they spend, then you can help people better manage their finances.
Give your cardholders visibility into their spending habits. Show them what they’re spending on recurring charges and subscriptions.
Empower your cardholders by introducing more financial transparency to their lives.
2. Easy Money Management
It’s worth repeating: the average American spends more than $850 per month of recurring charges and subscriptions. It’s not just that those charges are expensive — they’re also quite numerous.
Granting the ability to quickly and painlessly move recurring charges from one card to another helps people better manage their money. It also gives cardholders the opportunity to move subscriptions from a competitor’s card to yours.
3. Keep Cardholders Informed
Let your cardholders know when their card is about to expire. Let them know when their card expires. Send them a nudge, an email, or a push notification about it.
Give your cardholders the ability to quickly move their charges from the old card onto the new card. Keep them abreast of how and when they can do it.
This also works for lost, stolen, damaged, or otherwise-reissued cards. Make it easy for people to keep their payments on time and they’ll thank you for it.
4. Provide Incentives
You can ask for card loyalty all day long, but that might not get you where you want. If you reward card loyalty, then you’ve got a much better shot.
Find little ways to incentivize your cardholders to switch to your card. Make it economically practical. Give them a reason to want to use your card.
5. Use a Service
You can potentially accomplish all four of the above with a single service. Call it a shameless plug, but it deserves mention.
WalletFi can help your financial institution manage the previous four suggestions. It’s worth looking into, at least. Plus, it provides a turnkey solution to your cardholders so they can begin managing their money better immediately.
Getting your credit card top of wallet isn’t easy. There’s likely no one thing in particular you can do. However, a broader strategy that puts power and choice in the cardholder’s hands is a good idea.
First, giving cardholders better visibility and flexibility will help to establish trust. Allowing them to move payments around keeps things convenient. And rewarding them for using your card? Perfect.
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