National banks dominate the world of credit. According to a 2023 survey of credit-seeking U.S. consumers, close to 70% of active-card users rely primarily on credit cards issued by a national bank, while only 8.3% turn to credit-union-issued cards. And despite the historical tendency to offer lower interest rates than big banks, credit unions only open about 4% of new credit card accounts, Forbes reported. These two figures are concerning when you consider that credit unions have a 16% market share for primary bank accounts, according to a PYMTS study, pointing to a long road ahead for credit unions that want to increase the footprint of their credit card programs.

One reason national banks have had so much success in attracting consumers – even those who otherwise prefer to bank with a credit union or community bank – is their full-service rewards programs. In fact, a better rewards program was cited as one of the top reasons consumers were most likely to sign up for a new card, according to a JD Power study. Of all the rewards available to consumers, travel is seen as the most desirable and has the most potential to maximize conversions.