The following chart shows why drivers of different generations opened their most recent credit cards: Increase Credit Limit Found a Better Benefit or Reward Gen Z 31% 26% Millennials 35% 30% Gen X 26% 34% Baby Boomers 20% 36% The current marketplace offers unprecedented credit card choices, creating both opportunities and challenges for financial institutions. A revealing statistic from Rivel’s research shows that 38% of cardholders maintain no other banking relationship with their card issuer. This presents a significant opportunity for banks and credit unions to attract new customers, particularly affluent, older consumers with higher spending patterns, without requiring them to switch their primary banking relationship. Rewards on Their Terms Three key factors are driving increased credit card adoption — inflation concerns, credit access needs and rewards preferences. Daniel Bednar, chief strategy officer at OceanAir Federal Credit Union in California, sees this reflected in their members’ behavior, “We’re seeing strong demand for credit cards as members increasingly seek financial tools that offer competitive rates and robust rewards programs. People want rewards on their terms — when and how they want them.” Financial institutions are evolving beyond traditional offerings, integrating engagement-focused features to strengthen cardholder relationships. As Bednar notes, “Beyond that, we’re aiming to make our cards more holistic by integrating engagement and milestones into our rewards program, ensuring we celebrate and reward our members for their ongoing relationship with us.” Future Reliance on Credit Spending patterns across credit card users show remarkable consistency — with groceries, restaurants and travel emerging as the top categories — each used regularly by over 40% of consumers across all age groups. This consistency suggests that regardless of age, consumers view credit cards as essential tools for both everyday necessities and discretionary purchases. Income levels, however, reveal distinct usage patterns. Households earning above $100,000 annually are more likely to use their credit cards for these primary spending categories (over debit or cash) while also maintaining higher rates of full balance payoff. These consumers typically leverage cards for convenience and rewards rather than financing. Lower-income households show increased reliance on credit for essential purchases, though this often translates to carrying monthly balances, highlighting the growing role of credit cards in financial management across economic segments. This widespread shift toward credit-based spending, regardless of income level, represents a significant evolution in consumer payment behavior. For card issuers, this trend creates multiple revenue streams through interchange fees, interest charges and opportunities for deeper customer relationships. As credit cards continue to cement their position as the preferred payment method for major spending categories, financial institutions that align their offerings with these demonstrated usage patterns — while accounting for income-based differences in customer needs — will be best positioned for sustained growth in the increasingly competitive card market. As always, ensure your internal and external messaging and marketing around the brand and the specific benefits that your institution offers is clear. Differentiation is essential to growth in the credit card market this year. For more information on Rivel Banking Research’s benchmarking, market opportunity highlights and on-hand brand perception insights for your institution, contact Corey Wrinn, managing director, Rivel Banking Research, at cwrinn@rivel.com. 21 Colorado Banker
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