Industry Analysis & Industry Trends
The Credit Card Issuance industry suffered over the past five years, as the debt binge of the early and mid-2000s turned into something of a debt purge with the arrival of the credit crunch and recession. Industry revenue will decline 2.6% in 2011-12 to hit £8.20 billion, as the ongoing European debt crisis and dire economy continue to weigh on sentiment, and widespread deleveraging continues. This will be down from £10.1 billion five years ago, representing an average decline of 4% per annum.
When the credit crunch hit, lenders increased their credit standards amid scarce access to funding, while credit card customers sought to deleverage from record private sector debt levels. Between March 2007 and September 2011, the number of cards on issue fell from 69.6.. purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The industry's contribution to the economy is expected to fall by an average annualised rate of 4.9% over the five years through 2011-12, suggesting the industry is declining. However, IBISWorld analysis shows that the Credit Card Issuance industry is in the mature stage of its life cycle. The market for credit cards is reaching saturation point, with some 60 million cards on issue. The industry's declining contribution to the economy is mainly the result of the global financial crisis, which played a major role in the industry's performance over the past five years. This has distorted the actual direction that the industry is heading towards, being a unique and isolated event that plagued the industry and caused the results attained... purchase to read more