Proactively Managing a Credit Card Business in the Current DownturnSuggestions for credit card executives |
The ongoing credit crisis has resulted in an increase of delinquency levels and charge-off rates in the financial industry. With 2009-2010 expected to be a difficult economic year, banks and credit card issuers are likely to face continued losses. As such, they are considering action steps to navigate and proactively manage the tough environment.
Deloitte’s recent point of view, Proactively managing a credit card business in the current downturn, explores the various action steps that will help the banks and credit card issuers to minimize losses, and better position the issuers for near-term growth on revival of the economy. It focuses on:
- Recent trends of return on assets
- Rise in the charge-off rates
- Effective and proactive portfolio management
- Refining the underwriting standards
- Early warning and proactive risk reporting
- Improving predictive powers of key models
Read the full report to learn the action steps that issuers may consider for reducing the impact of losses and positioning for growth and profitability when a more favorable market environment returns.
Related Content:
Industry: Banking and Securities
Article: Building Consumer Trust in Retail Payments
Last updated
Proactively Managing a Credit Card Business in the Current Downturn
(1846.56 KB)
