Emerging Opportunities in the Indian Credit Card Industry: Market Size, Strategies, Products, and Competitive Landscape: Market Profile
- Language: English
- 32 Pages
- Published: July 2012
- Region: India
Although small business appetite for borrowing remains muted in the wake of the recession, a recovery in business card spending has begun. In this market, business credit card issuers are investing strongly in enhanced card families as they position themselves for a strengthening recovery. As credit performance slowly improves and issuers return to thoughts of account origination, small business card products are becoming more competitive.
“More than brand equity is being built by major issuers and stakeholders; they are offering an expanding array of small business products accommodating credit, debit, and charge; cashback and travel/flex points rewards; as well as financial terms. Complex, corporate-strength financial reporting and spending management tools once pitched as one-size-fits-all solutions are now being right-sized for small businesses and branded. Issuers are developing their proprietary product brands to help convey the feature combinations to prospects and to simplify the offer,” comments Ken Paterson, VP for Research Operations at Mercator Advisory Group and the primary author of the report.
The rapid evolution of card products is raising the bar for any firm wishing to compete in this space. This research is part of Mercator's ongoing annual coverage to this topic.
Highlights of the report include:
- The reasons small businesses' appetite for borrowing remains muted.
- The ways small businesses are filling the gap for credit.
- Which financial tools are experiencing rapid development and the levels where development is taking place.
- The investments leading issuers are making in their small business card product families. SHOW LESS READ MORE >
Table of Contents
State of the Market
The Small Business Prospect Base
Small Business Cards Look Like Premium Cards for a Reason
Reexamining Credit Demand
Credit Cards as a Borrowing Alternative
Borrowing and Spending Trends
The 2011 Product Environment
2012 Outlook and Strategic Implications
Perennial Regulatory Threats
Room for Small Issuers?
But Where Is the Demand?
The Right-Sized Tools for the Right Jobs
Will Next Year Be the Year for Charge Cards?
Figures and Tables
Figure 1: The Small Business Segment Is Diverse
Figure 2: High Net Worth Households Are More Likely To Be Business Owners
Figure 3: Credit Conditions Outlook Appears To Be on the Rise
Figure 4: Unmet Credit Needs Are Stabilizing
Figure 5: Two Views of Credit Demand: NFIB and Federal Reserve Bank of New York
Figure 6: Personal Cards Have Higher Approval Rates
Figure 7: Personal Cards Fill a Financing Gap Among Discouraged Applicants
Figure 8: Noncard Small Business Loans Appear to Stabilize
Figure 9: Barring a Relapse, Credit and Debit Should Get Back on the Growth Track
Figure 10: Small Business Products Represented a $342B Volume Market In 2010, up Almost 6.5%
Table 1: Major Issuers' Product Families
- American Express
- Capital One
- First Data
- US Bank. Visa
- Wells Fargo