another; is it based on rewards, interest rates or travel affiliation? As we enter 2021, there are many questions within the Credit Card sector that need consideration. 2021 brings forward the challenges of the last year, especially within the Credit Card sector. With a few exceptions, issuers have traditionally been laggards in the risk technology race, relying on staid and true legacy systems to process new applications in line with their established risk policies. We learned in 2020 that the daily changes in our economy have forced issuers to reconsider their approach to risk analytics, creating new models, new policies, utilizing traditional risk data plus alternative data sources not previously considered. On top of that, in the digital world, the need to create a positive customer experience plays a critical role in whether they remain loyal to one card or another. Issuers are forging new paths, considerations and, ultimately, opportunity.
If you look in your wallet, how many credit cards do you have? Of those, how many do you use daily? Paying for your daily coffee purchase, groceries at the local market, or gas for your car? Based on the latest available research from The Global Economy, in 2017, almost 66% of Americans possess one or more credit cards. 3 This is a competitive sector and one that continues to grow. In the same research, it is estimated that by 2025, consumers will utilize digital payments to the tune of $132.5 billion dollars. How do you differentiate one card from
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