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Article: Credit card strategies questioned.(report on consumer credit market by McLean Roche Consulting Group)
- Article from:
- Australian Banking & Finance
- Article date:
- August 15, 2003
- Author:
CopyrightCOPYRIGHT 2003 First Charlton Communications Pty Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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NEW ENTRANTS TO THE Australian credit card market such as Richard Branson's Virgin Group are likely to achieve success at the expense of the major total players because they are not weighed down by high cost reward programs.
They are therefore free to compete aggressively on price, service and product features.
A detailed report on the Australian consumer credit market by McLean Roche Consulting Group says the live major card issuers which have invested heavily in reward programs are facing the task of further diluting reward options, increasing costs and revenue reductions.
This will lead to further fee increases, consumer resentment and a ...