DUBLIN–(BUSINESS WIRE)–The “Credit Cards in a Post COVID World: Seven Takeaways for the Next Business Cycle” report has been added to ResearchAndMarkets.com’s offering.
This report focuses on the recovery of the credit card business and the COVID-19 pandemic.
The good thing about recessions is that they will end and move into the next economic cycle, which economists often call the trough. The bad news is that no one knows when the COVID-19 downturn will level. If we use the Great Recession as an example, the recession will last a year and a half, almost half the time it took to get through the Great Depression of 1929-1933.
Highlights of the research note include:
- Once payment deferrals end, expect delinquency aging to skyrocket
- Charge-offs beyond 6.54% will eliminate credit card industry profits
- Credit card return on assets (ROA) will fall into negative territory in late 2020
- Regulatory guardrails helped protect the industry; current expected credit loss (CECL) requirements and contingency planning proved their worth
- Top banks, particularly those required to comply with stress testing and DFAST, were well prepared
- Platform service providers played a significant role in providing options for the middle market.
This document contains 15 pages and 7 exhibits.
Key Topics Covered:
1. Executive Summary
3. Seven Strategies for the Next Crisis
- Rapid Impact, Protracted Recovery: Prepare for a Different Environment
- Contingency Planning Protects the Credit Card Business
- Account Level Risk Management Adds a New Layer for Credit Management
- Product Enhancements: Consider Existing Tools for Better Control
- Product Features May Require Modernization
- Credit Risk Management is Still the Name of the Game
- Vendors are an Essential Part of the Payment Ecosystem
- ACI Worldwide
- American Express
- Bank of America
- Capital One