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Issuers Recognize the Webs Competitive Impact, TSYS Survey Says

Wednesday 24 September 2003 11:12 CET | News

Most consumer-credit issuers use the Internet to support some elements of their card programs, especially customer service, according to a survey of major institutions commissioned by TSYS and conducted in partnership with FiSite Research.

Issuers expect to focus their future Internet activities on customer service more than new account acquisition. Here are some highlights of the executives responses: -- 85% of the institutions surveyed reported some card-related activities on the Internet, usually customer servicing activities like account information, bill payment, customer care or other self-service functions. -- One in four consider Web activities as an opportunity to gain competitive advantage in the marketplace. -- About half of the issuers use the Internet to attract new accounts, and two-thirds of these use some form of Internet advertising. -- Yet three out of four respondents report that the Internet generated less than 10% of new accounts in the past year. -- 60% of issuers surveyed dont predict greater reliance on the Internet as an acquisition channel because of customer quality issues, and 40% cite low approval rates from online sources. Issuers cite multiple reasons why they dont move more card-related services to the Web: corporate budget constraints, security concerns, cardholder adoption and changing technology. Many issuers cited security risks as a key challenge to their efforts to enhance existing online features. The survey includes responses from 33 consumer-card issuers -- monoline banks, retail banks, credit unions and retailers -- representing more than 150 million cardholder accounts. One-third of respondents represented portfolios of more than $1 billion in receivables, while the remainder represented portfolios of less than $1 billion. Responses were collected in July and August.


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Categories: Payments & Commerce | Payments General
Countries: World
This article is part of category

Payments & Commerce