Price: $1,500.00
Publisher:Javelin Strategy & Research
Publication Date: July 01, 2008
Pages: 28
Document Format: PDF



Credit card issuers face increased pressure to maintainprofitability in this difficult economic environment, withcardholder spending curtailed and rising default risk among alarger percentage of consumers. Losses in lines of businessother than credit card issuance have affected institution-wideapproach to risk—particularly risk of default among creditcardholders—and therefore the approach that card issuerscan take in acquisition and ongoing management ofcardholder lines of credit. This Javelin report uses robustconsumer data and executive survey data to provideunderstanding of consumer and issuer reaction to economicdifficulties, and prescriptive plans of action to createopportunities for card issuers, leveraging economic difficultiesfor competitive advantage.

Executive data is based on an online survey collected from a sample of 13 credit card industry executives at top-tier credit card issuers in May 2008. Among issuers surveyed, 54% have issued more than 5 million cards, 8% have issued between 1 and 5 million cards, and 38% have issued less than 1 million cards.



The consumer data in this report is based on data collected online from a random-sample panel of 1,500 respondents in April 2008. The survey targeted respondents based on representative proportions of gender, age and income as compared to the overall U.S. online population. Overall margin of sampling error is ±2.53 percentage points at the 95%confidence level.


Primary Questions

• What are consumer behavior changes vis-à-vis theircredit card usage as a result of the economic downturn?
• How are credit card issuers reacting to changes incardholder behavior and in the economy?
• What is the best way for credit card issuers to maintain abalance between profitability and risk against default?
• Which segments of the consumer population pose ahigher risk of credit card default?
• How should issuers alter policy with regards to more riskycardholders?


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