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.
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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.
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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.
