A new White Paper explains the impacts of the coronavirus pandemic on the UK's credit card market and explores how card issuers can adjust their strategies to respond effectively to the latest market trends.
Drawing on insights from Verisk Financial's Argus and Research divisions, the White Paper provides a data-driven briefing on the landscape for issuers, with a focus on spend and balance trends, regulatory drivers impacting the market; plus recommendations for portfolio optimization as the industry recovers from the pandemic period.
The UK's credit cards industry is one of the oldest and most competitive globally, with consumers having a wide selection of cards available to suit their lifestyles. The pandemic, though, has had a significant effect on the market with lower spend and balances resulting in declining profits. The good news is that the recovery is underway:
Lenders who have tightened risk criteria through the pandemic can begin to formulate strategies to reverse this, capture new spend, and begin to increase revolving balances again. However, they do so in an uncertain and evolving marketplace. COVID-19 has changed consumer patterns, and new competition in the form of "buy now, pay later" (BNPL) and fintech abounds. In this climate, it is vital that issuers get their product mix and acquisition strategies right. Understanding their own portfolio and wider market trends is more crucial than ever if they are to thrive amid intense competition.
About Verisk Financial Research The market-leading online, interactive database and data dashboards covering the global cards and payments industry in detail, plus a range of data-packed country and regional reports. Leveraging financial cards data going back to 2010 – and forecasts up to 2022 – our unique datasets cover 72 countries around the world and feature more than 250 metrics per market.