WASHINGTON—As credit union leaders gathered for America’s Credit Unions 2026 Governmental Affairs Conference this week, hallway conversations around credit cards and portfolio strategy were almost as prominent as policy debates on Capitol Hill, according to Brian Scott.
Scott, co-founder of RAI Partners, met with several CU executives this week, finding that three recurring themes are shaping how institutions are thinking about their card programs: attracting younger members, reaching underserved borrowers and managing risk within maturing portfolios.
Scott said younger members represent a significant, and often missed, opportunity. Many first-time applicants are being declined for traditional cards, he observed, even as research shows consumers tend to keep their first credit card for an average of 14 years—roughly twice as long as subsequent cards. That dynamic, he said, underscores how pivotal the initial approval decision can be in cementing long-term member loyalty.
He added that the cards space also intersects with credit unions’ broader push into underserved communities, including those pursuing or maintaining CDFI status. Lower credit scores and thinner files can make it difficult for some institutions to penetrate those markets through conventional underwriting models. Scott suggested there are partnership structures that allow credit unions to responsibly extend credit in those segments without taking on disproportionate balance-sheet risk, aligning with their mission focus while maintaining prudent oversight.
A third topic gaining traction, he said, involves legacy portfolios. Over time, card books naturally migrate as borrowers’ credit profiles change. Some members who qualified years ago might not meet current underwriting standards if they applied today. Scott said a growing number of executives are exploring whether selling portions of those higher-risk segments could allow them to de-risk their portfolios, free up capital and redeploy lending capacity toward members who fit their present-day credit criteria.
That concept—viewing portfolio sales not as a retreat but as a balance-sheet management tool—has sparked particular interest, Scott noted. By removing loans that no longer align with risk tolerance, credit unions may be able to strengthen overall performance while continuing to serve members through structured partnerships.
RAI Partners works with credit unions to support card programs for members who fall below traditional underwriting thresholds. The credit union retains the member relationship, while the card relationship—the credit risk and card support—operate behind the scenes at RAI.