CHICAGO — The number of credit card offers from national credit card issuing banks have 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," said 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."
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Hronek pointed 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."
In addition, the firm reported that where credit card offers have been dropping overall, many big issuers increased their other kinds of mail offers.
Mintel found Discover and Citibank both cut credit card mail (by 18% and 31%, respectively), but each realigned marketing strategies, with Discover increasing its share of loan mail to 12% and Citibank increasing its share of banking mail to 8% in second quarter 2008.
Mintel reported Discover increased its loan mail volume by more than 200% and Citibank increasing banking mail by over 700%.
Bank of America held steady on credit card mailings but boosted its mortgage and loan promotions by 26%, while Capital One and Chase also maintained credit card mail volume, but each cut lending offers (by 26% and 33%, respectively) while increasing banking direct mail.
HSBC reduced credit card, banking and loan mail volume across the board, sending 52% fewer offers overall, Mintel said.
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