How are small business credit card issuers in the U.S responding to the economic slowdown?
This was selected as Best Answer The economic environment in the US is providing the opportunity for small business issuers to rethink their portfolios and make investment decisions based on their capitalization needs vs. share growth strategies. This sets the stage for ongoing consolidation in the industry as well as increased interest on the part of commercial banks in a credit segment that will continue to post double digit growth figure for some years to come. The combination of soft consumer credit and corporate downsizing will be the fuel that drives an increase, and lending interest, in small business activity. For pure play issuers, such as American Express, we can already see their aggressive position solidifying with new cash management-type products and portfolio acquisitions. For commercial banks, the focus is on becoming the primary financial institution for that business owner; going far beyond providing a credit card. The credit card issuing business in the US has made t
