Stay, fold or draw: banks ponder their moves in the credit card game
Article Abstract:
Regional banks with credit card portfolios are compelled to rethink their strategies as the credit card market's prolonged period of profitable expansion comes to an end. Their profitability is declining due to such factors as the nationwide growth in household bankruptcies, increasing marketing expenses, and intensifying competition from public credit card companies. Advanta Corp, Capital One Financial Corp, First USA and MBNA Corp continue to take advantage of their substantial marketing, financial and technological resources to capture market share. Regional banks are responding differently to the new environment. Some are withdrawing from the credit card market by selling off all or parts of their portfolios, while other restricting their expansion plans. Other banks, such as Banc One, are choosing to specialize.
Publication Name: Banking Strategies
Subject: Business
ISSN: 1091-6385
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
After the gold rush
Article Abstract:
The popularity of co-branded credit cards has faded since their heyday in the early 1990s. During this period, credit card companies and major corporations scrambled to partner with one another, with the former attracted to the prospect of gaining access to lucrative customers and prospect lists while the latter expected the use of their logos on credit cards to bolster product sales and improve customer loyalty. However, the dissolution of many of these partnerships indicates that they cannot deliver on their promised benefits. Brand partners that have gone their separate ways recently include Ford Motor Co and Citicorp, and Giant Foods and M&T Bank Corp. Co-branding can fail because of the dissimilarities and the unequal division of risks and rewards between the partners.
Publication Name: Banking Strategies
Subject: Business
ISSN: 1091-6385
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Playing a new game
Article Abstract:
Lloyds TSB Group CEO Peter Ellwood is expected to provide growth and profit opportunities for the firm based on the company's core operations. Ellwood is anticipated to build market share in a number of business lines through the capitalization of new information technologies for the company, reportedly the global leader in retail banking. Industry experts predict that he will exert efforts to drive down the company's operating expenses using risk management strategies designed to support a performance profile. Ellwood is also expected to empower his management staff to accommodate various challenges facing the banking industry and the company resulting from intense competition and the emergence of new players.
Publication Name: Banking Strategies
Subject: Business
ISSN: 1091-6385
Year: 1998
User Contributions:
Comment about this article or add new information about this topic: