Affinity Credit Cards and Personal Loans Are Losing Ground in the UK Personal Lending Market.

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c58290) has announced the addition of Datamonitor's new report: Trends In Affinity Partnerships And Co-Branding In The UK Personal Lending Market to their offering.

Affinity partnerships and co-branded credit cards are currently experiencing diverging trends. Affinity lending is stagnating at best, while co-branded credit cards seem to be a market on the rise. Indeed, what will their futures look like?

Scope of this title:

Gain an understanding of how these markets are changing and what this means for lenders. Provides insight into how lenders can address the challenges they are facing. Incorporates primary interviews from industry experts.

Highlights of this title:

Following in the footsteps of the US, co-branding in the UK developed rapidly during the 1990s as the credit card market became increasingly competitive. The market saw a surge in the number of co-branded cards during the decade as well as after. Both affinity credit cards and personal loans are losing ground. Indeed, affinity partnerships in general are losing out because of their innate disadvantages, among which include threats of cannibalization, pressure on margins and higher costs. As affinity personal loans continue to decline further, many wonder if there is a way to change the model. Going forward, lenders must make sure that every partnership they make has a particular selling point, and one that will result in an eventual profit, whether through lower acquisition costs or a greater number of customers.

Reasons to order your copy:

Assess the opportunities of affinity partnerships and co-branded credit cards and learn how these markets are changing. Understand the reasons that draw both lenders and non-financial organizations to affinity partnerships and co-branded credit cards. Evaluate any opportunities or weaknesses in your business plan.

OUR VIEW
 CATALYST
 SUMMARY
 ANALYSIS
 Affinity and co-branding are two types of partnership in the personal
  lending market
 While sharing similarities, affinity marketing and co-branding are
  separate business models
 Affinity partnerships took off during the 1990s
 There are a number of benefits for lenders who enter affinity
  partnerships
 There are a significant number of large and small affinity
  partnerships in the UK
 Co-branding also developed rapidly during the 1990s
 Issuers have a range of reasons to get involved in the co-branding
  credit card market
 There are a large number of co-branded credit cards available in the
  UK
 Yet each is experiencing diverging trends
 Affinity partnerships are stagnating at best
 Affinity credit cards are losing ground to co-branded cards
 Moreover, affinity personal loans have been in decline for a number
  of years now
 Indeed, affinity partnerships are not as competitive as other schemes
  because of their inherent disadvantages
 While co-branded cards continue to expand
 Co-branding is expanding because it allows issuers to differentiate
  their offering in a saturated market
 Such trends are likely to continue in the short to medium term
 Affinity credit cards are likely to continue to stagnate
 Moreover, the affinity personal loan model is in danger
 For example, HBOS is gradually streamlining its affinity program
 MBNA is also looking to wind down its dependence upon affinity
  partnerships
 Meanwhile, co-branded credit cards are likely to increase in
  popularity
 Yet issuers and merchants must think critically about whether or not
  this is the right opportunity for them
 APPENDIX
 Supplementary Data
 Methodology
 Definitions
 Affinity partnership
 CAGR
 Co-branded card
 Consumer credit
 Gross advances
 Further reading
 European consumer credit reports
 UK consumer credit reports
 UK consumer credit briefings
 Forthcoming UK consumer credit briefings
 Relevant links
 Ask the analyst
 Our consulting
 Disclaimer

 List of Tables
 Table 1: Credit cards in issue in the UK by type, 2001-2005
 Table 2: Number of cards and value of transactions for affinity and
  co-branded credit cards, 2001-2005

 List of Figures
 Figure 1: General characteristics of affinity partnerships and
  co-branding, 2007
 Figure 2: Co-branded credit cards continue to expand while affinity
  credit cards have stagnated recently, 2001-2005

For more information visit http://www.researchandmarkets.com/reports/c58290

Source: Datamonitor