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Development of a Business Plan for Credit Card Agent Banking Model in Taiwan Market
Date Issued
2005
Date
2005
Author(s)
Lin, Yu-Tang
DOI
zh-TW
Abstract
Credit card industry had emerged in Taiwan for 20 years; however, most of the credit card issuers are lack of core competitiveness since they didn’t build up expertise as well as necessary business management skills on their credit card business. Furthermore, financial institutions would loosen their credit policy in order to confront competitions in the highly competitive market. With excessive cards issued, consumers’ credits are over expanded, and this development worsens the overall credit risk.
In the past few years, the revolving balance grows 30% years on year, however the credit card write-offs is also in sharp deterioration along with the growth of revolving balance. In the year of 2005, the yearly write-offs even reached NT$ 48.27 billion, it’s NT$ 30.32 billion higher than the first half of year with 169% growth. Facing the problems of accelerating credit loss, excessive write-offs and sharp step up in provisioning, many credit card issuers are at the risk of severe financial problems.
Without the economies of scale as well as the expertise on cardholder management and risk control, the medium and small credit card issuers are often in the deficit. The problem of credit card debt is just a preface to the financial turmoil. Under the severe and challenging situation, medium and small credit card issuers should deliberate to protect their financial structure and stockholders’ equity from the impact of their non-profitable credit card business.
Experienced in credit card industry for more than 10 years, the researcher suggests a practical business model - Cards Agent Banking, based on a concept of strategic alliance, for medium and small credit card issuers to solve their long-term problem of deficit. This research analyzed the public statistic information of Financial Supervisory Committee to identify potential credit card issuers who should take “Cards Agent Banking” to solve their financial problems.
In the past few years, the revolving balance grows 30% years on year, however the credit card write-offs is also in sharp deterioration along with the growth of revolving balance. In the year of 2005, the yearly write-offs even reached NT$ 48.27 billion, it’s NT$ 30.32 billion higher than the first half of year with 169% growth. Facing the problems of accelerating credit loss, excessive write-offs and sharp step up in provisioning, many credit card issuers are at the risk of severe financial problems.
Without the economies of scale as well as the expertise on cardholder management and risk control, the medium and small credit card issuers are often in the deficit. The problem of credit card debt is just a preface to the financial turmoil. Under the severe and challenging situation, medium and small credit card issuers should deliberate to protect their financial structure and stockholders’ equity from the impact of their non-profitable credit card business.
Experienced in credit card industry for more than 10 years, the researcher suggests a practical business model - Cards Agent Banking, based on a concept of strategic alliance, for medium and small credit card issuers to solve their long-term problem of deficit. This research analyzed the public statistic information of Financial Supervisory Committee to identify potential credit card issuers who should take “Cards Agent Banking” to solve their financial problems.
Subjects
策略聯盟
代理營運
市場區隔
資料採礦
信用風險管理
strategic alliance
agent banking
market segmentation
data mining
credit risk management
Type
other
File(s)
No Thumbnail Available
Name
ntu-94-P93745013-1.pdf
Size
23.31 KB
Format
Adobe PDF
Checksum
(MD5):422cc8f760afd1333e2d92902d061568