Bank of America (BofA) is set to boost its credit card portfolio by selling the cards to its existing customers.
The move by BofA comes after it cleaned 62% of its bad accounts and loans created since 2009.
Go deeper with GlobalData
By selling the card to its existing customers, BofA will ensure that they know more about the customer they are lending and also to save money on marketing.
Speaking on the bank’s decision to focus on existing customers, BofA retail products senior executive, Titi Cole, said that was their biggest strategic choice.
"The card business will be smaller, but less volatile and more profitable," Cole added.
According to Credit Suisse and Mintel Comperemedia data, banks are currently offering 45% more credit cards in November 2013 that in 2012.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataCole said while competition in the credit card space is heating up, the size of the bank’s current customer base will set it apart, and that they have relationships with one out of every two American households, which would give them access to more new accounts.
