Industry Analysis & Industry Trends
The Credit Card Issuance industry has suffered over the past five years as the debt binge of the early to mid-2000s gave way to a debt purge. The first few years that followed the financial crisis were characterised by consumers cutting back on debt and increasing savings. When the crisis hit, lenders increased their credit standards amid scarce access to funding, while credit card customers sought to deleverage from record private-sector debt levels.
Credit cards on issue fell from 64.4 million at the end of 2013 to 59 million at the end of 2015. However, since the end of 2015, both the number of credits cards on issue and the amount of debt outstanding are expected to have increased. However, both are expected to remain below the pre-downturn peak, which reached 69.6... purchase to read more
Industry Report - Starting a New Business Chapter
To be able to issue credit cards, a lender must have access to capital that it can use to finance its lending activity. As a result, a firm considering entry into the Credit Card Issuance industry must first establish a reliable source of funding. The cost of funding is important because it determines how competitively priced the lender's products will be and the profitability of the business. The UK economic downturn and the subsequent recession resulted in funding become more difficult to obtain, which increased the barriers to entry. Further to that, the funds that are accessible are now more costly, with investors' risk premiums having risen, placing a further cost burden on potential entrants. In .. purchase to read more