Abstract
Introduction
With the recent dramatic developments in the global economy the UK card market
is going to go through a severe shake up in 2009 and 2010. This report offers
an insight into what shape these changes will take, and the impact on the
cards industry through to 2010. By using the most up to date market indicators
this report highlights what will be the key influencers in a challenging
environment.
Scope of this research
- Part of the UK Plastic Cards series this report provides insight into what
impact the recession will have on the cards market
- Using the latest figures, the report focuses on the likely impact from the
rise in unemployment on write-offs and repayments
- Other key indicators covered in this report include rising rates of
household debt, and consumer shifts to recessionary behaviour
- By using the latest available market data the report offers concrete signs
of the early impact of the downturn, and likely future outcomes
Research and analysis highlights
With rising levels of unemployment the UK cards market is faced with a ticking
time bomb. Despite a stagnating economy, the UK credit card market remained
buoyant until unemployment began to rise. With unemployment estimated at 2.2m
and rising this will impact at all levels of the cards market as balances rise
and card write-offs increase.
Levels of household consumer debt have risen to problem levels during recent
years, despite an economic boom. Now faced with a worsening climate, many
consumers already on the brink of insolvency will be pushed over the edge.
Even for non-insolvent cardholders, balances are growing while repayment rates
decline to problem levels for issuers.
Consumer behaviour is changing faster than the rate of economic slowdown.
Spending levels, and transaction values began to fall before the full impact
of the downturn was felt by consumers. Now that consumers are feeling real
hardship spending levels will continue to decrease as consumer confidence
remains low.
Key reasons to purchase this research
- Understand the dramatic changes affecting the cards industry, with the
latest available market data providing real world insight
- Learn what are the key factors that will shape the UK cards market through
the downturn and the likely shape of the market in the future
- Develop strategies for dealing with the impact of the global downturn by
having an accurate account of what is happening now
| 
View Cart
