The top ten credit card issuers control 85% of the U.S. market – while thousands of others compete for the remaining 15%. The relentless marketing campaigns and offers sent by the top card issuers make it challenging for the small and medium-sized institutions to compete.

Many credit card issuers realize that their products are not as competitive as those marketed by the top issuers. Portfolio performance is stagnant, and may even be in decline. Yet, many issuers do not make it a priority to evaluate their options and commit to a course of action.

In the words of client Mary Cunningham, President & CEO of USA Federal Credit Union in San Diego, CA, “Don’t ignore your credit card program. Once you have the information in front of you, act decisively. Whether you keep or sell is not important, as long as you make a decision…and follow through with it.”

If you are a credit card issuer and are contemplating the future of your card portfolio, we encourage you to consider all of your options and opportunities. Make a commitment to sell your portfolio to the right partner, or dedicate the resources to manage it proactively.

Here are some considerations you may wish to make as you approach the “keep or sell” decision:

Don’t Let Portfolio Growth be the Measurement for Success
Growing the balances of a card portfolio is easy. Simply offer low introductory rates, low fixed rates, rewards, low rate balance transfers, credit limit increases, and so on. The tough part is -- can you do all this while retaining the right cardholders and, above all else, achieving a healthy net yield over time?

Until you know where you’ve been and where you are, how will you decide where you want to go?

Taking the First Step
The decision to keep or sell a card portfolio should be considered carefully. Your decision should be based on an objective and comprehensive analysis of your portfolio’s past performance, future projections, and the financial and strategic implications of a portfolio sale.

How has your portfolio performed historically?
Are recent performance trends a concern?
Do you have the willingness, budget and personnel to make the “keep” option viable?
What benefits and risks do you see in selling?
What are the financial implications of keeping vs. selling?
How will your card product offerings be enhanced by selling?

The AssetExchange Advantage
AssetExchange can help you make an informed decision, without bias or pressure. We will take your raw monthly processor reports and convert them into easy-to-read charts and financial analyses that clearly identify trends, strengths and areas of concern. With our assessment you will have a clear picture of how your portfolio is performing, strategically and financially.

If you wish (and only with your permission), we will obtain partnership offers for your portfolio and present them as an alternative to keeping. The financial implications of keeping vs. selling will be illustrated in “apples to apples” terms, in addition to the strategic and operational implications of each decision.

You will be given the data and tools to make the right decision for your organization and cardholders. When you choose to work with AssetExchange, you will receive an unbiased analysis of your options, you will never be pressured to sell, and we will work under your timeline to help you achieve your goals.

We look forward to working with you.