Single-card Fintechs Fall Behind In Customer Lifetime Value Race

However, that currency is in the middle of a paradigm shift.

The PYMNTS Intelligence report “The Best-In-Class Modern Card Issuer: How Diversity and Data Separate the Leaders from the Rest,” produced in collaboration with Visa DPS, surveyed 451 senior executives at financial institutions and FinTechs based in the United States. It revealed that broader card portfolios and smarter data strategies are no longer just perks. They’re becoming prerequisites.

While full-spectrum issuers reported stronger business performance and higher CLTV than their peers, the report’s findings drew a line in the sand between those who thrive in a digitizing financial ecosystem and those who merely survive.

The biggest difference boiled down to the diversity of offerings, technological sophistication and partnerships.

The future will be driven by data and choice, and the winners will be those who deliver both. Not just cards, but ecosystems. Not just transactions, but relationships. In that future, issuing the right card is just the beginning.

The Portfolio Imperative Grows for FinTechs and Financial Institutions

FinTechs and digital-only banks have become darlings of the digital finance world, but the data suggested they may be underperforming in CLTV potential. The report showed that 68% of FinTech issuers and 59% of digital-only banks still offer only a single type of card.

In the past, offering a single card type, like a credit card or a basic debit account, might have been enough to attract customers. But consumer behavior in 2025 is defined by expectations of seamless, personalized and multifunctional financial products. The report found that issuers offering all three card types (credit, debit and prepaid) were 3.5 times more likely to fall into the high CLTV category compared to their single-product peers.

The synergy of multiple card types enables financial institutions to serve different customer needs at different life stages. A prepaid card might be the gateway for young users or gig workers; a debit card supports everyday spending; and a credit card extends purchasing power. Together, they create a cohesive financial experience and a long-term customer.

While portfolio breadth opens the door, it is data that can turn the key to lasting customer relationships. High-performing issuers are not only collecting behavioral data; they are using it in real time to offer tailored credit lines, detect fraud and deploy hyper-personalized promotions.

According to the report, 68% of full-spectrum issuers prioritize fast processing and 61% value access to consumer analytics in their selection of issuer processors. These institutions understand that performance is driven not by a single capability, but by the interplay of technology, customer insights and operational agility.

Advanced analytics also facilitate better risk management. Real-time underwriting and automated workflows minimize friction during onboarding while maintaining strong controls. The result is more approvals, less exposure and a seamless user experience.

The report not only highlighted a roadmap for operational excellence but also a paradigm shift in the role of the modern card issuer. The top-performing institutions are no longer merely providers of financial products. They are ecosystems unto themselves by integrating product diversity, data intelligence and agile technology into unified, customer-centric platforms.

This shift has implications beyond profitability. It redefines how financial institutions think about loyalty, value and growth. In a market where switching costs are low and consumer expectations are high, issuers must build relationships, not just accounts.

The best-in-class are already doing so.