New Report Analyzes Future of Credit Card Industry

ROCKVILLE, MD, Jun 16 (MARKET WIRE) --
MarketResearch.com has announced the addition of TowerGroup's new report,
"After Boom and Bust: Navigating the Credit Card Industry into the Next
Economic Cycle," to their collection of Banking & Financial Services
market reports. For more information, visit
http://www.marketresearch.com/redirect.asp?progid=67618&productid=2213818

Business models for predicting changes in behavior and economic stress
failed to protect credit card issuers from the recession that began in
2008, and their business assumptions are untested for the economy that
will ensue.

Regulatory influence, consumers' diminished net worth, and a changing
workforce together indicate disruption of credit card issuers' 30-year old
business model.

Forward-thinking issuers will adapt their acquisition strategies to the
form the industry is likely to take after 2010 and will consider the
effects of the changing economy on their existing portfolios.

Although the credit model is under stress, branded card networks continue
to flourish with transaction volumes in prepaid and debit, the transaction
products into which card issuers should channel risky accounts.

Networks can easily adapt to changes in the mix of debit, credit, and
prepaid because they are managing electronic digits, but card issuers must
make adaptations at the cardholder level within the confines of regulatory
changes.

Because of its size, with nearly $1 trillion in revolving credit, the
industry will take time to change its business model, but it is essential
to begin planning for the recovery phase of the economic cycle.

Topics covered in the report include...
Background
Risks Today
The Evolving Credit Card Acquisition Strategy Model
The Future of Revolving Credit as Products Evolve
Account Segments
Sorting the Customer Base
Summary

For more information visit
http://www.marketresearch.com/redirect.asp?progid=67618&productid=2213818

Contact:
Gregg Kellett
MarketResearch.com
gkellett@marketresearch.com
240.747.3008

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