Announcing a major new Lafferty Group initiative for the credit cards and digital finance industry
This global research and advisory service aims to provide unique knowledge and insights into the fascinating intersection of credit cards and fintech. Case study-based and delivered in digestible monthly reports, it monitors best practices, provides commentary on products and services, analyses related fintech trends across the world, and provides incisive coverage across the latest developments in the credit cards and digital lending space.
Facing the new reality of the Fintech age
It is now clear that the world of payments is rebooted for good and these common threads run across the globe:
Vast scope for credit cards and digital lending
The Lafferty research and advisory service is delivered in a series of separate, regionally-focused services for the world's main geographies, as follows:
Each monthly report provides coverage across the various dimensions of the credit cards and digital lending business. All the key linkages across the landscape — consumer lending, retail banking, debit cards, prepaid cards, merchants, processors, regulators, networks — are covered.
Credit cards — on the edge or on a cusp of fintech innovation?
The venerable credit card has served the banking industry well for the past forty years, turning in rich profits and superlative RoEs. The credit card has been the primary engine powering the great consumer spending boom in the US and UK that has ensured their world economic dominance. But the success of the credit card hasn't been consistent across the world. Many of the emerging markets have simply not been able to build a profitable and sizeable credit cards portfolio.
Much of the fintech innovations and growth of mobile payments transactions have been either in replacing cash, or with the card in its plastic form being replaced by a digital product that is not only cheaper but easier to use. This vision has met with a fair amount of success in debit cards and prepaid cards; but the credit card industry really doesn't yet have much to boast about.
While mobile and other digital payments continue to gain share in the debit and prepaid as against traditional payment method, banks seem to have shifted their focus away from credit cards. In fact, the credit crisis has led to reduced credit avail¬¨ability, while regulatory standards have tightened and consumers are being made more cautious about getting into debt.
The rise of the fintech juggernaut
Fintechs abound in the payment industry, bringing a lot of ingenuity and entrepreneurship to the payments system. Yet, clouding this entrepreneurial spirit is risky behaviour or, at the very least, a proverbial lack of skin in the game. The new providers do not provide the safety and security that conventional card issuers do. Credit card issuers, being the bearers of risk by providing a line of credit to their customers, have a huge value that cannot be replaced by technological gig. The key word in the term "credit card" is credit — not card!
It's easy to get caught up in the excitement around alternative and mobile payments, especially with all the developments that are happening in the smartphone world, and much of this excitement revolves around the technologies.
The plastic-based revolving credit card is now looking anachronistic and even geriatric. Credit cards must now reinvent themselves in a new avatar that blends them seamlessly into the hectic world of digital commerce. Access to credit will always be coveted by consumers and honoured by merchants the world over. However, a makeover is needed for the traditional credit to thrive in the 21st century of constant fintech innovations.
Credit Cards can be the ace in the pack for banks and fintechs
Banks across the world are faced with an increasingly competitive marketplace coupled with consumers experiencing an absence of surplus funds to time them over economic cycles. Banks also have to rejig their core strategies and differentiate themselves through improved products and services. Customers are now least interested in who physically processes a transaction and where it processed: in fact they are largely oblivious to most things except the price and the quality of services offered.
Payment APIs from fintechs are looking to capture a sizeable share of the cards industry, but unless they start showing profits with a compelling revenue model, they will also fall by the wayside.
Credit cards can be the ace in the pack for both banks and fintechs: a sustainable offering for a long run.
Our intention is that every monthly report will provide insights for players in the credit cards and digital lending industry to make critical decisions on a timely basis guided by our in-depth research and recommendations.
The case studies provide a viewing gallery of all significant new developments in pay-tech (payments fintech) as well as incisive analysis on all the areas and items that are the moving parts of the credit cards and digital finance industry. The key areas covered in the advisory service are many. Depending on the individual case study, these will include:
The research service is complemented by access to our team of senior analysts and researchers. Subscribers simply book an appointment to gain access to bespoke, tailed advice.
Each case study will include:
For further information about Lafferty Group's new
Credit Cards and Digital Finance Global Research and Advisory Service contact Michael Lafferty — Michael.firstname.lastname@example.org. Phone: +4478 5040 7272
Subscribe to the Lafferty Daily BriefingSIGN UP
© 1981-2019 Lafferty Group
Toll-free: +44(0) 800 772 3849
83 Victoria Street