Understanding key metrics vital to healthy credit card portfolio
Although a credit card portfolio can be a financial institution’s (FI’s) most lucrative asset, generating up to 25 percent of an FI’s net income, it is often overlooked. Community FIs can easily slip into a status quo position when it comes to running what could otherwise be a huge earning asset.
In my recently released white paper, “Getting the Most Out of Your Credit Card Program,” I explain how even small tweaks to a credit card portfolio can produce big results.
Below is an excerpt from the white paper.
“An important first step to producing big results is to gain an understanding of goal metrics for a profitable portfolio. This serves as a basis for monitoring the success of your own accounts as compared to industry averages and best practices. What follows are a few guidelines for helping you gauge how your portfolio is performing today.continue reading »