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Credit Card Issuance in the UK: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Credit Card Issuance Market Research Report | SIC UK0.004 | Oct 2016

A lack of interest: Revenue and profit growth could be limited by low interest rates

IBISWorld’s Credit Card Issuance market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

Report Snapshot
Market Share of Companies
Barclays plc Barclays plc market share
HSBC Bank plc HSBC Bank plc market share
Lloyds Banking Group Lloyds Banking Group market share
MBNA Limited MBNA Limited market share
Royal Bank of Scotland Group Royal Bank of Scotland Group market share
Industry Statistics & Market Size
Revenue
£11bn
Annual Growth 12-17
0.1%
Annual Growth 17-22
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Profit
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Employment
9,339
Businesses
19
Industry Threats & Opportunities
  • The increasing prevalence of card payment should encourage future revenue growth
  • Despite improving demand, revenue growth could be limited by the rising use of debit cards
  • Increased capital requirements for banks is anticipated to limit revenue
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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 - Industry Locations Chapter

With the major banks being the biggest credit card issuers in the United Kingdom, the geographic spread of the industry's establishments is closely correlated with the dispersion of bank branches. This dispersion reflects the spread of the population and its density. Having establishments in densely populated areas allows credit card issuers to have a physical presence near a large pool of their customers, allowing them easy access to their products and services. The industry is becoming more centralised, however, as communication technology improves and consumers get comfortable dealing with financial-service providers remotely rather than face-to-face.

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Additional Insights for the Credit Card Issuance Industry

IBISWorld identifies 250 Key Success Factors for a business.The most important for the Credit Card Issuance Industry are

  • Access to the latest available and most efficient technology and techniques
  • Having an extensive distribution/collection network
  • Superior financial management and debt management
  • IBISWorld analysts also discuss how external factors such as Expenditure by household income- highest quintile and Official bank rate in the Credit Card Issuance industry impact industry performance... purchase to read more

     


    Industry ProductsRelated Reports

    What is the Credit Card Issuance Industry?

    The industry deals with issuance of credit and charge cards, which provide a line of credit or cash to businesses or consumers to use for purchases. Credit card balances roll over month to month. The balances can be repaid in full or on an instalment basis. Charge card balances must be paid in full monthly. Cards are not issued directly by Visa, MasterCard, Diners Club or American Express but these companies provide the transaction processing networks.

    Industry Products
    Balance transfer cardsLow-interest cardsInterest-free and 0% purchase cardsRewards cardsBad credit credit cards
     
    Industry Activities
    Extending credit via a credit cardProviding credit through a charge card


    Table of Contents
    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Expenditure by household income- highest quintile
  • Official bank rate
  • Real private consumption expenditure
  • National unemployment rate
  • Demand from e-commerce and online auctions
  • Current Performance
  • A slow start
  • Credit where credit is due
  • Competition dissipates
  • Establishments and employment
  • Chart: Revenue Growth
  • Industry Outlook
  • EU referendum
  • Reducing debt
  • Paying by plastic
  • Regulatory requirements
  • Table: Credit Card Issuance Industry Revenue Outlook
  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Credit Card Issuance Industry Lifecycle vs The Economy
  • Products & Markets
    Supply Chains
  • Key Buying Industries
  • Consumers
  • Key Selling Industries
  • Banks
  • Building Societies
  • Credit Bureaus & Rating Agencies
  • Debt Collection Agencies
  • Non-Depository Financing
  • Products & Services
  • Rewards cards
  • Low-interest cards
  • Balance transfer cards
  • Interest-free and 0% purchase cards
  • Bad credit credit cards
  • Chart: Credit Card Issuance Industry Products and Services Segmentation
  • Demand Determinants
    Major Markets
  • Consumers
  • Businesses
  • Chart: Major Market Segmentation for the Credit Card Issuance Industry
  • International Trade
    Business Locations
  • Chart: Business Locations by State
  • Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Interest expense
  • Provision for bad and doubtful debts
  • Wages
  • Rent, depreciation, utilities and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Credit Card Issuance
  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Credit Card Issuance Industry
  • Industry Globalization
    Major Companies
    Barclays plc
    The Royal Bank of Scotland Group plc
    Lloyds Banking Group plc
    MBNA Limited
    HSBC Bank plc
  • Table: Barclays plc - financial performance
  • Table: The Royal Bank of Scotland Group plc - financial performance
  • Table: Lloyds Banking Group plc - financial performance
  • Table: MBNA Limited - financial performance
  • Table: HSBC Bank plc - financial performance
  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Credit Card Issuance Industry
  • Chart: Tools of the Trade: Growth Strategies for Success
  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth
  • Regulation & Policy
    Industry Assistance
    Key Statistics
  • Table: Industry Data for the Credit Card Issuance Industry
  • Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Table: Annual Percentage Change for Key Industry Data
  • Table: Key Ratios for Industry Key Data
  • Jargon & Glossary
    Credit Limit
  • A limit on the amount of debt that can be accrued on a credit card. The credit card issuer sets the limit by considering the earning capacity and credit rating of the borrower.
  • Credit Rating
  • A rating of an individual's or business' financial history, reflecting their ability to take on and service debt.
  • Icb
  • The Independent Commission on Banking was an inquiry in the United Kingdom set up to look at how best to promote stability in the financial system following the financial crisis.
  • Principal
  • The original size of the loan issued, which may or may not include certain other fees and costs. The principal reduces in size as the borrower makes repayments.
  • Revolving Credit Balance
  • Balance outstanding on a credit card that is rolled over to the next month, where interest charges accrue over the period.

  • Why Buy this Report?
    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Credit Card Issuance:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Credit Card Issuance market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Credit Card Issuance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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