Card Issuers Should Shift Card Strategy to Meet Competition, Expert Says
An expert on card marketing has reported that card issuers have begun pushing out credit card offers at a record pace and that card issuers can seize opportunities by shifting some of their card terms.
“Opportunities exist for those card issuers who are willing to swim against the tide,” said Andrew Davidson, senior vice president with Mintel Comperemedia, a firm which tracks credit card offers. “For example, there tends to be a 'me too' approach when it comes to responding to new regulations. Bucking those trends can enable an issuer to gain an edge.”
According to Mintel Comperemedia, the fourth quarter of 2010 saw approximately 1.4 billion offers for new credit cards flow into consumer's mailboxes, up from 551 million during the fourth quarter of last year. This represents the fifth quarter of successive growth.
Ways Davidson suggested issuers can gain an edge in the current environment included waiving balance transfer fees, which would run counter to a trend which has seen balance transfer fees increase; waiving foreign transaction fees; lowering annual percentage rates for purchases and extending the periods of time that introductory rates are available.