Is it time to re-evaluate your credit card program?

The current market environment has many senior leaders examining card loan assets more closely. Factors heightening these concerns include:

  • Higher funding costs – slowing or negative deposit growth rates
  • Higher credit costs – full implementation of CECL (additional loss provisioning)
  • Higher risk profiles – rising delinquencies and loss across the card industry

These challenges can burden profitability requiring senior leaders to provide additional oversight to effectively manage risk, expense, and efficiently manage capital.

On top of these challenges, inflation and the uncertain economy may cause cardmembers to pull back on spending, reducing efficiencies and profitability for issuers.


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