By Ray Birch
DALLAS— As credit unions search for new ways to attract younger members and expand beyond their traditional fields of membership, an unexpected opportunity is emerging from college campuses: university-branded payment card programs tied to athletics, alumni networks and even Name, Image and Likeness (NIL) initiatives.
According to Brian Scott, co-founder of RAI Partners, universities increasingly are exploring card programs that can help fund athletic departments, engage alumni and create deeper financial relationships with students and fans. For credit unions, the programs offer something many institutions are struggling to find—access to a passionate, loyal and often younger membership base.
"The most popular program right now is athletics and NIL," Scott said. "Universities are looking for ways to pay athletes, and it's hard to get people to simply write checks. These card programs can return a percentage of spending back to the athletics program, specifically to help fund athletes."
The concept is relatively straightforward. Consumers use a university-branded debit or credit card, and a portion of the interchange revenue generated by spending is directed back to the school's athletic department or NIL efforts. For universities, it creates a recurring funding source. For credit unions, it can create a powerful affinity relationship with alumni and fans.
"If I'm going to switch financial institutions, I'm going to switch somewhere that's tied to the university I'm a fan of," Scott said. "Those cards have become super popular and have a lot of potential for credit unions to bring in new members and attract a very different member base."
Alumni Association Opportunities
Scott believes some of the strongest opportunities may lie not only with athletics programs but also with alumni associations.
Alumni organizations often maintain extensive databases of graduates, many of whom are entering their peak earning years. Combining alumni and athletic partnerships can create a powerful marketing engine.
"If you can get the alumni association and the athletics program working together, that's gold," Scott said. "The alumni association has the mailing lists and relationships with graduates who are often financially successful and highly engaged with the university."
Those members tend to fit the demographic many credit unions are actively pursuing: younger professionals with growing financial needs who may be seeking mortgages, investments, credit cards and other products.
Student card programs represent another opportunity, although Scott cautioned they can be difficult to make profitable in the short term.
Many credit unions have long sought ways to attract Generation Z consumers, but student-focused card programs come with regulatory requirements and lower immediate revenue potential.
"Student cards are really tricky," Scott said. "They bring in younger members, which a lot of credit unions are looking for, but students generally don't have a lot of money and there are additional restrictions and regulations you have to follow."
Still, Scott argues that credit unions should view student programs as a long-term investment.
"When you look at them over a 10-year time horizon, those young members graduate and become financially successful," he said.
Some institutions are pairing student cards with checking accounts, savings products and credit-building tools in an effort to deepen relationships early.
Perhaps the least discussed opportunity involves university business and purchasing cards.
Universities process millions of dollars annually through employee travel-and-expense programs, procurement cards and contractor payments. Capturing even a portion of that spending can create meaningful revenue streams.
"University business cards are incredibly successful," Scott said. "You can tie those programs back to athletics as well, where a percentage of spending helps fund athletes. That becomes a really powerful connection."
Multiple Programs, Single Relationship
Brian Scott
According to Scott, the strongest strategy may be combining multiple programs under a single university relationship.
"Being able to tie athletics, alumni and university business cards together gives credit unions the flexibility and profitability to ultimately pursue student card programs," he said.
Beyond card revenue, Scott sees the larger value in the membership opportunities universities provide.
Many credit unions have struggled to diversify their membership bases as traditional SEG relationships evolve and competition from banks and fintechs intensifies. University partnerships, he said, offer access to highly engaged communities that already share a common identity.
"A lot of credit unions are getting really interested in these programs because they tie themselves into a whole different member base than what they've had in the past," Scott said. "It's a great way to grow new members, a great way to grow younger members, and university fans and alumni tend to be extremely loyal."
RAI Partners works with credit unions on university card programs, including helping institutions negotiate partnerships and, in some cases, operating programs behind the scenes while allowing the credit union's brand to remain front and center. Scott noted that several credit unions have recently expanded their university partnerships, including Community Choice Credit Union in Iowa, which has signed multiple university-related programs in recent months.
For credit unions facing increasing competition for deposits, loans and younger consumers, university partnerships may represent more than a card strategy. They could become an entirely new pathway to membership growth, Scott concluded.