The Financial Services Specialists

The Cards industry confronts a variety of challenges as the market evolves through the economic downturn. Whilst Cards payments have been disproportionately hit in reduced consumer spending, the recent prospect of consumer credit reform and security problems further threaten profits.

In our view, such times call for companies to focus on existing portfolio improvement - all too often overlooked or misunderstood - rather than customer acquisition. Card portfolio rationalisation and optimisation are now seen as pre-cursor to new product development, migrations, and other complex business change; leaving companies both more profitable now, and well-placed for economic growth. But whilst such health-checks are key, a lean, optimised and diversified portfolio will look different for each provider. Companies would also be well-advised to consider any subsequent cuts to the portfolio against the changing definition of what makes a ‘good customer' - keeping in mind the potential negative impact on customer relations should they dismiss a portfolio segment too hastily. Indeed, there are plenty of solutions to address the problem of inactive cardholders, designed to prompt existing customers' plastics back to the coveted front-of-wallet position. New products, including loyalty programmes, have been used with this aim in mind, and Bluerock has a strong track-record of managing, and delivering such developments.