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Elan and VolCorp Launch Card Program for Credit Unions

Elan Credit Card teamed with VolCorp to launch a credit card program for credit unions.

The partnership brings together VolCorp, a nonprofit cooperative that bills itself as the “credit union for credit unions,” and Elan, which works with more than 1,200 financial institutions across the United States, according to a Tuesday (Nov. 28) press release.

“Ensuring our co-op members have the best tools available for their members is a core mission for VolCorp,” VolCorp President and CEO Jeff Merry said in the release. “By partnering with Elan, we can now offer a credit card solution to support growth and deeper member relationships.”

The collaboration is happening as consumers are increasingly turning to credit unions (CUs) and community banks for credit, according to “Credit Unions and Community Banks Gain Credit Card Issuing Momentum,” a PYMNTS Intelligence and Elan collaboration.

The study showed that the share of consumers with a CU or community bank card as their primary card climbed from 8.3% in 2020 to 13% in 2023. In addition, just under a quarter of consumers said they would likely turn to these financial institutions the next time they apply for a credit card.

“CUs and community banks can improve their appeal by offering the key features national bank cardholders value,” PYMNTS wrote last week. “These include rewards and cash back programs, the ability to split payments and adjustable spending limits.”

The study found that 68% of U.S. adults with actively used cards got their primary card from a national bank, while just 8.3% got their primary card from a CU.

However, more than a third of the national bank cardholders said they would be highly likely to switch if smaller financial institutions offered the right features.

“Rewards and cash back programs represent the most impactful benefit overall, as 81% of national bank cardholders cited these as important, and 37% of this group would be highly likely to switch to a CU or community bank that provides cards with this feature,” PYMNTS wrote.

Among the other high-impact benefits listed were account alerts, autopay, and websites and apps that let users monitor balances and make payments.