CUs Offering Cards Find a Steadily Emptier Field
CHICAGO -- Credit unions might find their card marketing a little easier because the number of credit card offers from rival issuing banks continued to drop, according to a market research firm.
The firm Mintel Comperemedia estimated, based on its research, that credit card offers dropped 8% from the first to second quarter of this year (from 1.67 billion card offers to 1.54 card offers)."Undoubtedly, this is a symptom of the global credit crunch," comments Lisa Hronek, senior analyst at Mintel. "Record losses from the subprime fallout and rising delinquencies have squeezed issuers' credit so tight, they're tapping out. Add that to the fact that consumers' credit is already stretched and you're left with a tough market for credit card issuers."
Hronek points out the need for new marketing strategies, which she's seen from leading companies. "Cutbacks in direct marketing are part of financials institutions' plan to ride this through. We see notably less credit card and mortgage offers as companies figure out key messaging, services and products for today's anxious, weary consumer."