Overview

Borrowed time: Revenue has declined due to fewer interest-accruing credit card accounts

IBISWorld’s Credit Card Issuance market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Banks and lenders have increased efforts to attract younger demographics to stem declines
  • The big four banks have continued dominating the industry due to their access to funding
  • Customer satisfaction is forecast to remain a priority, boosting industry staff numbers

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    Industry Analysis & Industry Trends

    The Credit Card Issuance industry has declined slightly over the past five years, largely due to a decrease in the number of credit card accounts that accrue interest. Banks and lenders have increased their efforts to attract younger and lower income demographics over the past five years, to prevent further declines. Despite the ratio of credit card debt to discretionary income falling and the trend of households deleveraging their financial position with respect to credit cards, credit card transactions have increased.

    Historically low interest rates have prompted residential property prices to boom, further fuelling the industry's decline. Credit card interest rates have largely remained unchanged over the past five years, despite cash-rate cuts...

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    Industry Report - Industry Analysis Chapter

    Prior to the global financial crisis, it was not uncommon for credit card debt to grow by double digits every year. However, consumer attitudes towards debt have changed and households have deleveraged their positions over the past five years. As a result, credit card debt has marginally decreased over the same period. The balance of debt can be split into two categories: debt that accrues interest and interest-free debt. The latter is usually a limited-time offer to consumers within a promotional period, during which interest payments are not required. The proportion of interest-earning credit card debt has declined against total credit card debt balances over the past five years. Consequently, industry revenue is expected to decline at a compound annual rate of 0.9% o..

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    Additional Insights for the Credit Card Issuance Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Credit Card Issuance Industry are

  • Access to the latest available and most efficient technology and techniques
  • Having an extensive distribution/collection network
  • Management of a high-quality assets portfolio
  • IBISWorld analysts also discuss how external factors such as Household consumption expenditure and Consumer sentiment index in the Credit Card Issuance industry impact industry performance..

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    Industry Products

    What is the Credit Card Issuance Industry?

    The industry issues credit and charge cards to businesses and consumers. These cards provide users with a line of credit to use for purchases or cash advances. Credit card balances roll over month to month and can be repaid in full or by instalment. Charge card balances must be paid in full each month. The cards are issued by financial institutions rather than directly by Visa or MasterCard, which only provide the transaction processing networks.

    Industry Products
    Balance transfer cards
    Rewards cards
    Low-interest cards
    Low or no annual fee cards
    Platinum and gold cards
    Business cards
    Industry Activities
    Providing credit via a credit card
    Providing credit via a charge card

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Household consumption expenditure
  • Consumer sentiment index
  • High income earners
  • National unemployment rate
  • Ratio of credit card debt to discretionary income

  • Current Performance
  • Revenue drivers
  • Profitability and other trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Growth returns
  • Debit card competition increases
  • Continued new technologies
  • Table: Credit Card Issuance Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Credit Card Issuance Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Building Societies
  • Credit Agencies
  • Credit Unions
  • Debt Collection
  • Foreign Banks
  • National and Regional Commercial Banks

  • Products & Services
  • Platinum and gold cards
  • Business cards
  • Low-interest cards
  • Rewards cards
  • Balance transfer cards
  • Low or no annual fee cards
  • Chart: Credit Card Issuance Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other consumers
  • Consumers aged 35 to 54
  • Businesses
  • Chart: Major Market Segmentation for the Credit Card Issuance Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Interest expenses
  • Wages
  • Provision for bad and doubtful debts
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Credit Card Issuance

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Credit Card Issuance Industry

  • Industry Globalization
    Major Companies
    Commonwealth Bank of AustraliaWestpac Banking CorporationAustralia and New Zealand Banking Group LimitedNational Australia Bank LimitedCitigroup Pty Limited
  • Table: Commonwealth Bank of Australia - financial performance
  • Table: Westpac Banking Corporation - financial performance
  • Table: Australia and New Zealand Banking Group Limited - financial performance
  • Table: National Australia Bank Limited - financial performance
  • Table: Citigroup Pty Limited - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Credit Card Issuance Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Credit Card Issuance Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Credit Limit
  • A limit on the amount of debt that can be accrued on a credit card, set by the credit card issuer and determined by the earning capacity and credit rating of the purchaser.
  • Credit Rating
  • A rating of an individual's or business's financial history, reflecting their ability to take on and service debt.
  • Four Major Banks
  • A term for the four largest domestic banks in Australia: Commonwealth Bank of Australia, Westpac, National Australia Bank and ANZ Bank.
  • Revolving Credit Balance
  • Balance outstanding on a credit card that is rolled over to the next month, where interest charges accrue over the period.
  • Tier 1 Capital
  • The most liquid form of capital, usually in the form of cash reserves and shareholders’ equity.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Credit Card Issuance:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Credit Card Issuance market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Credit Card Issuance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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