Market Research Report - 233915
Small Credit Card Issuers 2012: Waiting for a Renaissance
|Published by||Mercator Advisory Group, Inc.|
|Published||Content info||27 Pages|
|Small Credit Card Issuers 2012: Waiting for a Renaissance|
|Published: March 12, 2012||Content info: 27 Pages||
Boston, MA -- Mercator Advisory Group's newest report assesses the odds of a renaissance of direct issuing among small issuers along with factors such as barriers to entry and competitive consumer challenges that affect those odds. Next, the research reviews a number of the important outsourcing partner firms serving this market.
As all financial institutions are faced with the challenge of growing their revenue-generating assets and putting their excess deposits to work, many smaller institutions are reexamining credit card lending as a growth opportunity or as a new product. Others that may have previously sold their card programs are again considering direct issuing. But will these new interests be able to turn around the long decline in the numbers of small FIs that directly issue credit cards? And what will these firms demand from their processing/outsourcing partners to support the increasingly complex credit card business?
“Considering the needs of small FIs to build assets, as well as the excellent resources available to effectively support small credit card programs via the processor/outsourcer community, the hopeful point of view would suggest the potential for strong growth in the ranks of small issuers. And indeed, we do hear from some processors/outsourcers that their pipelines of new issuers are strong. On the other hand, the hurdles are high for small FIs, and the established market trends are not positive,” comments Ken Paterson, VP for Research Operations at Mercator Advisory Group and the primary author of the report.
One of the nine exhibits included in this report:
Sources: FDIC, NCUA,Mercator Advisory Group
©Mercator Advisory Group
Companies mentioned in this report include: CSCU, Discover Network First Data Corporation, FIS, Fiserv, Jack Henry Associates, MasterCard, NEBA, PSCU Financial Services, TSYS Program Solutions, and Vantiv.