Abstract
Overview
Credit card issuers are facing intense competitive forces in 2008: downward
pressure on fee income and interchange revenue, coupled with fallout from the
subprime meltdown and questions surrounding the overall creditworthiness of
their cardholder base. The Federal Reserve reported on January 8, 2008 that
credit card borrowing is at its highest level in six months, reflecting that
borrowers are relying more heavily on credit card debt to finance purchases
since the availability of equity loans has tightened. With growth increasing
but delinquencies expected to rise, it is imperative that issuers extract as
much efficiency and employ effective cost-saving measures for their card
portfolios. This report analyzes Javelin consumer data-segmented by various
demographics and behaviors-to provide insight that will enable issuers to
drive profitability and expand cost saving measures through enhanced targeting
of the online channel.
Primary Questions
- What percentage of consumers has a credit card and which population
segments are particularly underserved?
- How do credit cardholders apply for their cards?
- How can Issuers leverage the online channel for cost savings?
- Which consumer segments are prime targets for online channel migration?
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