This individual Note Innovative Strategies for Credit Card Account Acquisitionis available for purchase. This Note is available to members of Mercator Advisory Group’s Credit Advisory Service. Please be advised that this Note is normally part of a research and advisory service that provides ongoing support throughout the year. As such, this Note contains significant depth of content that is selected for its strategic importance to our members. (For a description of these services, see our Advisory Services section).
While the Note represents significant analyst time invested, there is no means of our ascertaining if it will fully meet your specific intended purposes. Typically, these Notes form the basis for future discussions with our clients where we are able to fine-tune additional information that we have gathered in the construction of the series of Notes (or locate new information rapidly due to our exclusive focus on gathering information in the payments industry) for specific member needs.
Unfortunately, in fairness to our paying members, we are not able to offer this level of support for a single Note purchase. We will, however, credit any Research Document purchase against the future purchase price of the service should you become a member within 30 days of purchasing the document.
The price for individual Note purchases is $1450 per document.
Click here for a fax-back order form
Boston, MA – April 23, 2014 – Growth in new credit card accounts has stalled largely because financial institutions’ appetite for risk in their portfolios has not increased significantly since the recession. This sentiment is strongest among tier 1 banks, some of which are still winding down their highest-risk portfolios, having acquired them at the peak of economic turmoil. Several vendors have developed analytics-based solutions that can help issuers profitably lend to potentially risky consumers, but for the most part, they are waiting for issuers to decide the time is right. Mercator Advisory Group’s latest Research Note, Innovative Strategies for Credit Card Account Acquisition, examines how credit issuers are effectively marketing products and originating accounts in the current economic climate.
“Large credit card issuers are almost exclusively marketing products to prime and superprime consumers, but this can only go on for so long as these are very saturated segments,” comments Michael Misasi, Senior Analyst, Credit Advisory Service at Mercator Advisory Group and the primary author of the Note. “Financial institutions have to take on more risk to grow their credit portfolios. The first banks that find a way to profitably serve riskier consumer segments will have the most opportunity for long-term growth.”
This report contains 10 pages and 5 figures.
Companies mentioned in this report include: Equifax, Experian, FICO, FIS, PNC, Zoot, US Bank, and Wells Fargo.
Members of Mercator Advisory Group’s Credit Advisory Service have access to these reports as well as the upcoming research for the year ahead, presentations, analyst access, and other membership benefits.
One of the exhibits included in this note:
(Click to Enlarge)
Highlights of the report include:
- Trends in household ownership of credit cards
- Trends in approval rate for credit cards for consumers of carrying creditworthiness
- Estimated level of credit card ownership for various credit score bands
- A discussion of the role of various banking channels for credit account origination
- Profiles of noteworthy vendor solutions for card account acquisition and origination