Over the past few years small business credit cards have emerged as a critical segment in the credit card marketplace. To remain fully competitive, financial institutions with business customers must deliver this product in a way that is both cost effective and meets the needs of this important customer segment.
While many financial institutions have a clear understanding of the nature of consumer card products, the specifics required in small business cards are more complex and sometimes do not receive the full attention required. Frequently the business card product is not considered a central element of the overall relationship and its functionality and utility to the business owner suffers as a result. This can be a serious weakness. While the balances and revenue relative to other business lending products (such as lines-of-credit or mortgages) can be small, the frequency with which a business owner turns to their credit card for transactional needs is higher than for any other product.
INCREASING COMPETITION
Many national issuers are aggressively marketing business card products through the mail, in trade publications or other similar channels. While our home mailboxes are overwhelmed by consumer card solicitations, the business owner’s mailbox is flooded by business credit card offers. If your product has not been priced competitively, does not offer...
