Secured Credit Cards: An Alternative Path to Mainstream Card Products

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Research and Markets

26 Jan, 2015, 16:47 GMT

DUBLIN, Jan. 26, 2015 /PRNewswire/ --Research and Markets

(http://www.researchandmarkets.com/research/p2tzzd/secured_credit) has announced the addition of the "Secured Credit Cards: An Alternative Path to Mainstream Card Products" report to their offering.

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Unbanked and under-banked consumers, many of whom have modest incomes, face numerous financial challenges. In recent years, product development designed to serve these individuals has almost exclusively leveraged prepaid accounts. Meanwhile, consumers have become much more aware of the importance of building and maintaining a good credit score - a goal not typically achieved with prepaid products.

Regulatory and profitability challenges have caused some providers of secured credit cards to leave the market, although a few national financial institutions as well as several smaller ones are finding ways to make their products successful. Opportunity awaits issuers that are willing to reevaluate this underdeveloped product. Millions of consumers - young adults, recent immigrants, and consumers with past financial difficulties are in need of credit building tools.

The research report 'Secured Credit Cards: An Alternative Path to Mainstream Card Products' examines the competitive landscape for secured credit cards, reviewing emerging products' features and positioning.

Secured credit cards are a valuable tool for consumers to build or rebuild credit, comments Michael Misasi, senior analyst and one of the report's authors. Financial institutions should not overlook the opportunity to establish long-term relationships with secured credit products.

Highlights of this research report include:

  • A review of the secured card product landscape
  • A discussion of the relevant target markets for secured cards, thin/no file and sub-prime
  • Estimated addressable market (number of consumers) for various secured card market segments
  • An analysis of key product trends such as upsell strategies, use of partially-secured cards, and the budgeting use case

Key Topics Covered:

Executive Summary

Introduction

Overview of Secured Credit Card Products

  • Fully Secured and Partially Secured Credit Cards

Business Model

Potential Market and Customer Base for Secured Credit Cards

  • Thin File/No File Demographic (Immigrants and Young Adults)
  • Subprime Demographic

Market and Competition for Secured Credit Cards

  • Market Players in the United States
  • Credit Limits
  • Starting APR and No-Penalty APR
  • Rewards and Cobranded Programs

Industry Positioning of the Product Suite

  • Turn-down Product
  • Direct Sell
  • Cross-Sell Product

Product Trends

  • Graduation Policy
  • Partially Secured Cards
  • Budgeting Tool
  • Personal Financial Management Tools

Regulatory and Risk Considerations for Secured Credit Programs

  • Risk Considerations
  • Regulatory Considerations

The Relationship Between Prepaid and Secured Credit Cards

Conclusion: Strategic Implications and Opportunities

  • Endnotes
  • For more information about this report

Companies Mentioned:

  • Bank of America
  • Capital Bank
  • Capital One
  • Digital Credit Union
  • First National Bank of Omaha
  • Fifth Third Bank
  • Merrick Bank
  • Navy Federal Credit Union
  • Suntrust
  • Synovus Bank
  • US Bank
  • USAA
  • Wells Fargo

For more information visit http://www.researchandmarkets.com/research/p2tzzd/secured_credit

Media Contact: Laura Wood , +353-1-481-1716, press@researchandmarkets.net