Changing Market Dynamics for Cards Issuers – Adapting to Succeed in the Changing Order
While the cards market has always been a gold mine for the card issuers, of late things have started to change. The payments landscape is rapidly changing as alternate methods of payment are coming into play. Moreover, record charge-offs are occurring at a time of increased government regulation. All these factors combined are taking a toll on the profitability of the cards issuers.
The days of credit cards as a profitable stand-alone product could be over in the near future if card issuers fail to act in time. Moreover, the stage is also shifting for other market players such as service providers, technology vendors, and the FinTechs; therefore, they need to be at the top of their game to stay relevant in the future.
This paper explores the key challenges pertaining to the issuing side of the payment card industry and seeks to present a few approaches that can help the issuers navigate through troubled waters.