Researching Online Credit Card Industry

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Post subject: Internet Credit Cards

jody johnson
Date: 2/3/2001 9:14 am CDT

Dear Sirs,
I am MBA student and I am writing work about development of on - line credit
card distribution.
In the process of study I noticed that Internet only banks in the USA are
not focussing their credit activities on credit card origination but
concentrate it on homogenous asset products such as residential mortgage
origination, home equity lines and auto loans. As I understood almost all
Internet - only banks refuse to give credit card origination services to
their clients and outsource it to big credit card companies in fashion that
bank itself wouldn't keep any credit risk.
In our university you company is known as a leading specialist in credit
card field.
If it possible, we would like you to explain us in two words why Internet -
only banks prefer not to be involved in credit card origination activities.

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CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!

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dave
Date: 2/3/2001 12:01 am CDT

what about nextcard?

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CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!

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Board Monitor- NK
Date: 2/4/2001 12:44 am CDT

I can tell you why, but not in two words.

You will find if you extend your research to non internet only banks that the vast majority outsource their credit card business to one of the major issuers. Why? Because it's too much of an investment of time, resources, and infrastructure to set up their own credit card business. It can be done better and cheaper by a big issuer.

Kat
creditexpert.tripod.com/home.htm

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CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!

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