Introduction
The non-standard credit card market presents issuers with a clear opportunity. However, it is not a market to be entered lightly. How big is this market? What are the potential gains and risks? How can issuers succeed? This briefing provides the answers.
Scope of this report
- This briefing examines the opportunities for issuers in supplying credit cards to those traditionally refused credit from mainstream lenders
- In depth analysis of the way in which this market differs from the mainstream, particularly in terms of underwriting, product pricing and marketing
- This briefing contains estimates for the size of the UK non-standard credit card market for 2003 and 2004, as well as forecasts to 2009
- While this brief is UK focused, there are a number of transferable lessons that apply to credit card markets in other countries
Research and analysis highlights
Datamonitor estimates that there were 9.6 million credit cards in issue to individuals classified as non-standard in 2004. The bulk of these cards are held by self-employed consumers with no other reason to be considered non-standard. However, while penetration amongst the remaining non-standard population is low, it is beginning to grow.
Serving this segment requires issuers to fundamentally change the way in which they assess the risk posed by customers with specialist needs, and may even necessitate the creation of an entirely new business model depending on the extent to which a lender wishes to move down the risk scale.
Despite a projected decline in the non-standard population, Datamonitor forecasts that the non-standard credit card market will enjoy strong five-year growth. This will be driven by an increase in cardholding amongst the lower end of the non-standard population, due to greater issuer competition and improvements in underwriting techniques.
Key reasons to read this report
- Discover the current size of the UK non-standard credit card market and see Datamonitor's forecast for the market to 2009
- Understand the key differences between this market and the mainstream, and how incumbent players have overcome these difficulties
- Benchmark your existing or planned business model against that of existing competitors in the non-standard credit card space
The non-standard credit card market presents issuers with a clear opportunity. However, it is not a market to be entered lightly. How big is this market? What are the potential gains and risks? How can issuers succeed? This briefing provides the answers.
