Big Banks Look to Credit Cards for Growth
As the number of people refinancing loans continues to decline, big banks like US Bank and Wells Fargo are relying on credit cards to bolster their profits. Wells Fargo already announced a push on credit cards a few weeks ago, and now it seems that US Bank is jumping on the bandwagon.
When the economy was in the lowest part of its downward spiral, banks were seeing great returns on refinanced loans that brought in new interest payments. Now that people are continuing to pay their bills on time, the need to refinance is not as prevalent.
Wells Fargo is using this as an opportunity to target big spenders with new credit card offers, in partnership with American Express.
“American Express is very good at identifying what in fact does motivate you,” said David Robertson, the publisher of the Nilson Report.
Wells Fargo is hoping to tap into that ability and profit from it.
Meanwhile, U.S. Bank has improved its financial expansion through its white label credit card program. This allows the bank to issue cards for over 1,700 other financial institutions.
In addition, US Bank is focusing on expansion to other parts of the world. The bank has already made its way into Mexico and Brazil, and is looking to expand in China, South Korea, Japan, Malaysia and Singapore.