Boston, MA -- (SBWIRE) -- 04/11/2014 -- Banks and other card issuers are increasingly focusing on credit cards designed to target mass affluent consumers. Even though mass affluent consumers represent a relatively small percentage of their total customer base, the revenue generated from them is high - mainly due to their deeper banking relationships that involve deposit accounts, mortgages, investment, and asset and wealth management, among others.
Mass affluent consumers spend more while shopping, traveling and purchasing services than mass market consumers. Moreover, the spending patterns of mass affluent consumers are generally less impacted during economically difficult times. Mass affluent customers are also traveling more than ever, and forecasts for outbound trips indicate that this trend will continue over the next five years in key economies. Consequently, both issuers and card schemes are partnering with airlines, hotels and resorts, and luxury brands to offer enhanced benefits on credit cards. Mass affluent customers are often offered lounge access at airports, free and discounted air tickets, preferential treatment at hotels and resorts, free valet parking, discounted limousine services, and insurance cover that ranges from travel accident to lost and delayed baggage, to trip cancellation. Card issuers and schemes also frequently offer roadside assistance, emergency legal and medical referrals, cash help in cases of loss or theft, and emergency card replacement services.
View Full Report Details and Table of Contents
Capitalizing on private banking and wealth management relationship, the use of mass affluent brands such as Visa Infinite, and issues of 'black' card editions are general strategies for card issuers, key markets such as South Korea and Brazil also have their own segmentation strategies. Issuers in South Korea use alphabets and numbers to distinguish their card offerings, while the use of other colors such as purple and red, which reflect royalty and wealth, have also gained attention. Issuers in Brazil often focus on sports events and limited-edition cards, and some segment their card offerings based on monthly income. In Russia, preset credit limits are a key segmentation strategy."
- Consumers are moving away from conspicuous consumption to more considered consumption, and access to special or unique experiences through their card has gained importance. In this altered environment, banks and other card issuers are adopting various strategies to decrease operating costs and increase revenue potential.
- Banks and other card issuers are increasingly focusing on credit cards designed to target mass affluent consumers driven by the relatively high profitability offered by this segment. At times, banks may run the cards at a loss, but benefit from the rest of their relationships with mass affluent clients through deposits, investments, savings, mortgages, and asset and wealth management, among others.
Companies Mentioned in this Report: HSBC, American Express, Chase, Citibank, Barclays, Merrill Lynch, Coutts, Capital One, Canadian Imperial Bank of Commerce, Royal Bank of Canada, TD Canada Trust, Bank of Montreal, Commonwealth Bank, Westpac, National Australia Bank, Shinhan Bank, Hyundai Card, Samsung Card, Banco Do Brasil Americas, Banco Bradesco, Diners Club International, Visa, MasterCard, Raiffeisenbank, VTB24, Russian Standard Bank, Alfa Bank, Al-Tayseer, Commercial Bank of Kuwait, Gulf Bank, Ahli Bank of Kuwait, National Bank of Kuwait
About Fast Market Research
Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Financial Services research reports at Fast Market Research
You may also be interested in these related reports:
- 2020 Foresight Report: Best Practices in Managing the Credit Risk Cycle
- 2020 Foresight Report: Best Practices in Card Outsourcing
- Insight Report: Best Practice - Ensuring Optimal Customer Service and Relationship Management
- Insight Report: Responsible Lending - Changing Regulatory Environment and Industry Practices
- Credit Card Customer Analytics
- Credit Cards Market in Brazil to 2017: Market Brief
- Credit Cards Market in Sweden to 2017: Market Brief
- Credit Cards Market in Russia to 2017: Market Brief
- Credit Cards Market in Mexico to 2017: Market Brief
- Credit Cards Market in Chile to 2017: Market Brief