Report: Banks expect to face challenges in 2018
Banks are expected to face some obstacles in the coming year, according to Mercator Advisory Group's 2018 outlooks for both the banking and payments industries.
The topics addressed in these Outlooks set the foundation for Mercator Advisory Group’s research agenda for the coming year and provide a framework for key points of engagement that Mercator Advisory Group will have with its clients in 2018, according to a press release.
"In early 2017, U.S. debit card transaction volume took an abrupt and steep decline. In 2018, issuers face a new normal with lower and unpredictable growth, compressed margins, and ever-changing fraud challenges," Sarah Grotta, director of Mercator's debit and alternative products advisory service, said in the press release. "Meanwhile, push payments will make debit cards important as the gateway to consumers’ and small businesses’ transaction accounts."
Banks will also face some problems with credit card issuance.
"Two thousand eighteen will be a year for U.S. credit card issuers to tighten up lending and build on existing customer relationships as account delinquency begins to rise," Brian Riley, director of Mercator's credit advisory service, said. "Credit card account volumes and revolving debt in the United States are back to peak levels. Concurrently, past due accounts are beginning to increase. In 2018, issuers should solidify their portfolios, grow organically, and prepare their portfolios for emerging payment opportunities."
Topics: Trends / Statistics