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Data for today’s episode is provided by Mercator Advisory Group’s report – Credit Card Lenders: Hone Strategies and Do Not Let Fintechs Scare You.
Revolving debt will grow to $1.3 trillion in 2023:
- In 2013, there was $888 billion in revolving U.S. debt
- In 2023, there will be a projected $1.3 trillion in revolving U.S. debt
- Aggregate growth for the 11 years (2013-2023) will advance 30%
- Compound annual growth rate (GAGR) of U.S. revolving debt for the 11 years is 3.52%
- Debt issued by credit card banks will grow from $703 in 2013 to $1.17 trillion in 2023
- Credit card debt issued by credit unions will grow from $49.4 billion in 2013 to $83.8 billion in 2023
- ‘Finance Companies’ are the big losers: $64 billion in 2013 will fall to $14 billion in 2023
About Report
Marketplace lenders and non-bank point-of-sale finance lenders are not likely to disrupt the course of credit card lending.
Marketplace lenders now dominate the installment loan industry, a segment previously dominated by banks. Loan options are appearing everywhere, but fintechs are simply repackaging old lending products for loans and point-of-sale finance. Credit card issuers should focus on their products’ benefits rather allowing these aspiring disrupters to change the playing field.
