Strong Credit Card Growth Requires Preparation for a Market Shift

New research from Mercator Advisory Group says U.S. credit card issuers must protect credit quality in advance of an economic downturn 

Boston, MA - March 22, 2017 - Revolving debt in the United States is back in full swing as U.S. credit card issuers passed the trillion dollar mark, a level not seen since the U.S. market entered into the Great Recession. Once the recession hit, record credit card losses brought angst to every card issuer and portfolio values fell more than $150 billion.

In a new ForeSight report, Credit Card Management: Seven Strategies to Take Advantage of a Growth Wave, Mercator Advisory Group reviews the reinvigorated market and presents the Mercator Advisory Group Effective Credit Card Portfolio Management Continuum as a framework to ensure that growth is both profitable and risk averse.

 

Download this complimentary ForeSight report, Credit Card Management: Seven Strategies to Take Advantage of a Growth Wave for free.

 

"It is easy to become complacent about portfolio growth, but issuers must not build castles on a foundation of sand," commented Brian Riley, Director of Mercator Advisory Group's Credit Advisory Service, author of the report. "It is important to keep risk management in the forefront, both for credit loss and fraud. Credit losses, which typically represent about 3.5 percent of annualized net receivables, spiked to over 10 percent during the recession. This cost major issuers billions of dollars of net profit and took them three years to recover. Taking steps now, while the operations are doing well, is essential. There are many vendor options, ranging from full service companies that cover the entire spectrum, to spot solution specialties that can help cure particular problems. It is vital to stay ahead of the curve, and the time to take action is now, when things are good, rather than waiting to react when delinquencies rise."

Highlights of the ForeSight report include:

 

  • A review of U.S. revolving debt growth
  • The value chain, from issuing bank to fintech firms
  • Mercator Advisory Group's Effective Credit Card Portfolio Management Continuum 
  • Seven strategies to take advantage of the credit card growth wave

 

One of the 4 exhibits in this ForeSight report:

 

ForeSight1

 

The research report is 10 pages long and contains 4 exhibits.

Download this complimentary ForeSight report, Credit Card Management: Seven Strategies to Take Advantage of a Growth Wave for free.

 

Members of Mercator Advisory Group's Credit Advisory Service have access to this report as well as the upcoming research for the year ahead, presentations, analyst access, and other membership benefits.  

Please visit us online at www.mercatoradvisorygroup.com.  

For more information and media inquiries, please call Mercator Advisory Group's main line: 1-781-419-1700, send email to media@mercatoradvisorygroup.com.  

Follow us on Twitter @ http://twitter.com/MercatorAdvisor.

 

About Mercator Advisory Group
Mercator Advisory Group is the leading independent research and advisory services firm exclusively focused on the payments and banking industries. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our clients range from the world's largest payment issuers, acquirers, processors, merchants and associations to leading technology providers and investors. Mercator Advisory Group is also the publisher of the online payments and banking news and information portal PaymentsJournal.com.