Introduction

Affinity partnerships and co-branded credit cards are currently experiencing diverging trends. Affinity lending is stagnating at best, while co-branded credit cards seem to be a market on the rise. Indeed, what will their futures look like?

Scope

Gain an understanding of how these markets are changing and what this means for lenders. Provides insight into how lenders can address the challenges they are facing. Incorporates primary interviews from industry experts.

Highlights

Following in the footsteps of the US, co-branding in the UK developed rapidly during the 1990s as the credit card market became increasingly competitive. The market saw a surge in the number of co-branded cards during the decade as well as after. Both affinity credit cards and personal loans are losing ground. Indeed, affinity partnerships in general are losing out because of their innate disadvantages, among which include threats of cannibalization, pressure on margins and higher costs. As affinity personal loans continue to decline further, many wonder if there is a way to change the model. Going forward, lenders must make sure that every partnership they make has a particular selling point, and one that will result in an eventual profit, whether through lower acquisition costs or a greater number of customers.

Reasons to Purchase

Assess the opportunities of affinity partnerships and co-branded credit cards and learn how these markets are changing. Understand the reasons that draw both lenders and non-financial organizations to affinity partnerships and co-branded credit cards. Evaluate any opportunities or weaknesses in your business plan.

Introduction

Affinity partnerships and co-branded credit cards are currently experiencing diverging trends. Affinity lending is stagnating at best, while co-branded credit cards seem to be a market on the rise. Indeed, what will their futures look like?

Scope

Gain an understanding of how these markets are changing and what this means for lenders. Provides insight into how lenders can address the challenges they are facing. Incorporates primary interviews from industry experts.

Highlights

Following in the footsteps of the US, co-branding in the UK developed rapidly during the 1990s as the credit card market became increasingly competitive. The market saw a surge in the number of co-branded cards during the decade as well as after. Both affinity credit cards and personal loans are losing ground. Indeed, affinity partnerships in general are losing out because of their innate disadvantages, among which include threats of cannibalization, pressure on margins and higher costs. As affinity personal loans continue to decline further, many wonder if there is a way to change the model. Going forward, lenders must make sure that every partnership they make has a particular selling point, and one that will result in an eventual profit, whether through lower acquisition costs or a greater number of customers.

Reasons to Purchase

Assess the opportunities of affinity partnerships and co-branded credit cards and learn how these markets are changing. Understand the reasons that draw both lenders and non-financial organizations to affinity partnerships and co-branded credit cards. Evaluate any opportunities or weaknesses in your business plan.