The FINANCIAL — According to Marketwire, MarketResearch.com has announced the addition of TowerGroup 's new report "Revitalize the Credit Card Pre-Charge-off Collection Process and Improve the Bottom Line," to their collection of Banking & Financial Services market reports.
Based on current bank card delinquency trends, TowerGroup expects that 2009 net charge-offs for Visa, MasterCard, American Express US, and Discover Card US could exceed $71 billion (USD), which would be more than a 30% rise from 2008.
Bank card profits will improve, credit card delinquency rates will decline, and net charge-off trends will reverse if credit card issuers enhance the pre-charge-off collection process.
Improvements to technology and process can help card issuers reduce operating expenses, but an investment in qualified collectors provides a larger return to the bottom line.
TowerGroup estimates the cost to replace one bank card customer ranges from $160 to over $200, and issuers that work with their customers through this difficult economic period will retain those customers for life.
Credit card issuers' collection systems have evolved from basic production platforms to integrated multichannel communication and management systems that use empirically based scoring solutions for their collection strategies.
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