Citigroup is stepping up its charge card offers by postal mail in a big way, writes the Wall Street Journal. Coming to a North American home near you in the 3rd quarter will be around 346 million charge card promotions, as reported by figures published by analysis firm Synovate. That's greater than one for every male, wom-an and kid in the U.S., at a cost exceeding $240 million.
Citi sending too many deals already
Citigroup was already among the most active mailers. After 3rd quarter outcomes are tabulated, it might even beat Chase for the top spot. Considering that the company has re-portedly lost hundreds of millions of dollars on charge cards during the financial cri-sis, executives believe the mass mailing will be money well spent.
Currently, Citigroup is in fourth place for dollars spent on charge cards by U.S. customers putting it behind American Express, J.P. Morgan Chase & Co. and Bank of America. That means that it has lots of work to do, as shown in the Nilson Report.
After the storm there's a rainbow
Continued reduction in non-collectable credit card debt across the United States has confident the powers at Citigroup that the darkest clouds of re-cession have passed. This must be true since the business, when compared to the second quarter of 2010 where it made $154 million, made $584 million in 2011's second quarter.
Citigroup executive Jud Linville sees ample opportunity, as mailings from American Express, Bank of America and Discover all went down considerably last quar-ter.
"This is a business where you look for vacuums," Linville said. "Are there players moving out of certain categories?"
Dodd-Frank Act takes away cash
In Octo-ber, the fees banks charge for debit card swipes will be capped by merchants because of the Durbin Amendment of the Dodd-Frank Act. This makes debit cards significant-ly less profitable for issuing banks, which in turn has caused several issuers to drop costly rewards programs.
Citigroup plans to get consumers into its charge card programs by bridging this gap. This summer, Citi has helped even more by offering cards with simplified fee structure, no annual fee, no late charges and zero percent balance transfers. Customers that take advantage of the offers will end up making Citi some money. It will be worth it in the end.
Citi sending too many deals already
Citigroup was already among the most active mailers. After 3rd quarter outcomes are tabulated, it might even beat Chase for the top spot. Considering that the company has re-portedly lost hundreds of millions of dollars on charge cards during the financial cri-sis, executives believe the mass mailing will be money well spent.
Currently, Citigroup is in fourth place for dollars spent on charge cards by U.S. customers putting it behind American Express, J.P. Morgan Chase & Co. and Bank of America. That means that it has lots of work to do, as shown in the Nilson Report.
After the storm there's a rainbow
Continued reduction in non-collectable credit card debt across the United States has confident the powers at Citigroup that the darkest clouds of re-cession have passed. This must be true since the business, when compared to the second quarter of 2010 where it made $154 million, made $584 million in 2011's second quarter.
Citigroup executive Jud Linville sees ample opportunity, as mailings from American Express, Bank of America and Discover all went down considerably last quar-ter.
"This is a business where you look for vacuums," Linville said. "Are there players moving out of certain categories?"
Dodd-Frank Act takes away cash
In Octo-ber, the fees banks charge for debit card swipes will be capped by merchants because of the Durbin Amendment of the Dodd-Frank Act. This makes debit cards significant-ly less profitable for issuing banks, which in turn has caused several issuers to drop costly rewards programs.
Citigroup plans to get consumers into its charge card programs by bridging this gap. This summer, Citi has helped even more by offering cards with simplified fee structure, no annual fee, no late charges and zero percent balance transfers. Customers that take advantage of the offers will end up making Citi some money. It will be worth it in the end.
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