Consumers’ use of cards to pay for transactions and fund loans continued to increase over the past year, as banks reported strong growth in receivables and transaction volume.


Key themes

  • Banks reported strong year-over-year increases in purchase volume and receivables
  • Loss rates increased compared to the prior year due to ongoing normalization and seasoning of loan growth; however, most banks also reported moderate declines in loss rates compared to the prior quarter
  • Intense competition to acquire new accounts has pushed returns for several banks lower
  • Mobile and digital remain key areas of focus, particularly in account acquisition, servicing, and enhanced use cases
  • Banks have noted that conditions remain highly favorable for the U.S. consumer as unemployment remains low and debt to disposable income remains manageable
  • Increases in revenue at several issuers are attributable to net interest margin expansion and strong loan and purchase volume growth

Notable happenings

Partnership Renewals:

  • Disney and Chase
  • Lowe’s and Amex Business Rewards Card

New Partnerships:

  • Air Canada announces intent to seek new credit card partner
  • Synchrony and Mavis Discount Tire
  • Alliance Data and Viking Cruises

New Products/Features:

  • PayPal and Synchrony introduce new 2% cashback Mastercard
  • Stein Mart introduces Elite credit card and revamped rewards
  • Delta and United introduce new cards

Mobile & Tech:

  • P. Morgan Chase announces plan to acquire fintech firm WePay
  • PayPal and Chase sign agreement to expand mobile payments

Industry trends (based on Non-Retail Card Issuers in Scorecard Section)

Issuer Scorecard—Q3 2017 ($ in Billions)


Paul Sammer, Management Consultant





Submit a Comment

Your email address will not be published. Required fields are marked *