Card technology & growth: a marriage made in credit heaven
Article Abstract:
Technology continues to support the growth of the credit card industry. Before the advent of sophisticated applications technology and measuring tools, many credit card issuers found it quite difficult to assess risk and balance it with gain to achieve profitability. Far from simply supporting the industry's growth, technological innovations provide links to all components of the entire credit cycle, including marketing, customer service, collections, risk and fraud. The proliferation of credit card technology began in the 1980s when card marketing intensified considerably. Sophisticated tools such as biometrics, attrition predictors, database analysis and customer response rates began to emerge. Demand for more effective tools increased even more in the 1990s when the industry's focus shifted from acquisition to retention, increased usage, collection segmentation and fraud control.
Publication Name: Credit World
Subject: Banking, finance and accounting industries
ISSN: 0011-1074
Year: 1996
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Future speak: what lies ahead for consumer credit?
Article Abstract:
The consumer credit industry will be immensely transformed by the year 2005. For one, consumers will be value-conscious rather than brand-loyal, be knowledgeable about interest charges and fees and will leverage them when availing of credit, require electronic self-servicing, be comfortable with smart-card technology and direct debit, and be amply informed about equal credit, privacy and debtor rights. On the other hand, the consumer credit grantor will function on narrower margins, offer electronic self-servicing, feature a highly sophisticated automated back office and outsource manual back office operations to the so-called cottage industries of credit grantors. Moreover, grantors will make use of global credit bureaus, collect less charges from merchants and pay them faster, and exploit the global information highway.
Publication Name: Credit World
Subject: Banking, finance and accounting industries
ISSN: 0011-1074
Year: 1995
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A view to the past, a vision to the future
Article Abstract:
Credit professionals should have a sufficient understanding of how the credit behavior of consumers has been evolving over the years. Credit was not popular in the 1950s but became a customary activity for consumers in the 1990s. Consumer debt has shifted from closed-end credit agreements to credit cards. The most popular are bank cards although smaller issuers are also gaining ground, including those that offer third-party cards and store cards. In the current market environment, credit companies should sharpen their skills in economies of scale, economies of skill and strategic planning to ensure their survival and success. They should learn how to manage their risk and react to trends once they are identified.
Publication Name: Credit World
Subject: Banking, finance and accounting industries
ISSN: 0011-1074
Year: 1998
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