Credit Card Acquisition and Account Management: Deepening Online Relationships for Efficiency and Profitability

Table of Contents

• Overview
• Primary Questions
• Findings and Analysis
• Top-of-Wallet Target: Nearly One-Fourth of US Consumers without a Credit Card
• Issuer Strategies to Gain Primary Card Status with Younger Consumers
• Drive Application via the Online Channel among Younger Consumers
• Aggressively Target "Multi-Channel" Cardholders for Paper Turnoff
• Targets for Paper Turnoff Are already at their Issuers' Websites
• Consumers Fear thatPaperless Means Loss of Control
• Online Applications to Overtake Mail Solicitations?
• Approach Lower Income Consumers with "Spending Card" Options
• Disparity of Payment Method among Lower Income Consumers
• Appendices
  • Appendix A : Gen Y Income Growth to Exceed that of Baby Boomers by 2017
  • Appendix B: Younger Consumers Prefer Catalogue Rewards
  • Appendix C: Efficiency and Cost Saving Opportunities by Income
  • Appendix D: "Hybrid" Activity Prominent among Black and Latino Cardholders
  • Appendix E: Black and Latinos Underserved in Credit Card Arena
  • Appendix F: Asian and Latino Cardholders Pay Bills at Credit Card Sites
• Methodology
• Related Research

Table of Figures

• Figure 1: Percentage of Consumers with a Credit Card by Age
• Figure 2: Credit Card Penetration among Gen Y (18-29-year-olds)
• Figure 3: Percentage of Cardholders Who Apply Online by Age
• Figure 4: Bank Credit Card Programs for Younger Adults and Students
• Figure 5: How Cardholders Receive and Review Statements by Age
• Figure 6: Consumers' Credit Card Bill Payment Behavior by Age
• Figure 7: Consumer Attitudes towards Paper Statement Turnoff (by Type of Banker)
• Figure 8: "Primary" Credit Card Application by Income
• Figure 9: Percentage of Consumers with a Credit Card by Income
• Figure 10: Credit Card Bill Payment by Income
• Figure 11: 2007-2017 Projected Income Growth by Generation
• Figure 12: Rewards Features Currently Earned on Credit Card by Generation
• Figure 13: Credit Card Statement Receipt and Review by Income
• Figure 14: Statement Receipt and Review by Ethnicity
• Figure 15: Lack of Credit Card Possession by Ethnicity
• Figure 16: Credit Card Bill Payment by Ethnicity