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U.K. Credit Cardholders Want 1) to Choose Their Payment Due Date Then 2) Receive Payment Related Alerts

September 25, 2014

[LONDON] According to consumer research recently conducted in the U.K. and published in Cardbeat®, a syndicated research report published by Auriemma Consulting Group, Inc. (ACG), the ability to choose a payment due date for their credit card has broad appeal to cardholders.  However, only a quarter recall being offered this option by any credit card issuer.

Account management tools with the next highest appeal are alerts for payment related events (e.g., approaching credit limit, payment due, payment received, etc.) and end-of-offer reminders.  More than one-third of cardholders find these features beneficial; yet more than half report never being offered this timely information.

Marianne Berry, Managing Director of the Payments Insights practice at ACG, points out,  ‟Cardholders under 45 years old and revolvers are significantly more likely to find control and security benefits appealing than older cardholders or cardholders who pay their balance in full each month.”  And the youngest surveyed cardholders, those under age 25, state a significant preference for receiving alerts and reminders via mobile app.  Ms. Berry observes, ‟Channel predilection is likely to shift to newer, more convenient technologies, especially as young consumers mature using their mobiles for all sorts of information and daily transactions.”

The survey’s Industry Satisfaction Index is trending upward — reaching its highest point in the past two years, with the biggest gain in ‘trusting the credit card company with personal information.’  Banks can build on growing customer satisfaction by offering tools with high perceived value that cardholders want to use to manage their credit card accounts.  ACG’s research highlights opportunities for banks and other financial institutions to capitalise on their knowledge of consumers’ perceived value of specific account management tools.

Forgetting a credit card PIN is the single most frequent problem that cardholders experience, with more than two-thirds of these cardholders receiving their replacement PIN via post.  Half of these cardholders report using their credit card less often, stopping using the card, or cancelling their card.

Given that roughly one in seven cardholders report having forgotten their PIN within the past year, waiting for a replacement PIN to arrive via post interrupts usage and leads to potential significant attrition.  Card issuers should note — some issuers have procedures in place to replace a PIN via email, phone, or via their website, thus precluding their cardholders substituting another card.

About Auriemma Consulting Group

ACG is a boutique management consulting firm with specialised focus on the Payments and Lending space. We deliver actionable solutions and insights that add value to our clients’ business activities across a broad set of industry topics and disciplines.  Founded in 1984, ACG has grown from a one-man shop to a nearly 50-person firm with offices in London and New York.  Visit ACG’s website at www.acg.net.  For more information, please contact Marianne Berry at +44 (0) 207 629 0075 or marianne.berry@acg.net.