In a new video by American Banker, many aspects of the banking industry are discussed, but the primary objective of the video is to point out that the banking industry is unsure where to go as it faces a variety of unknowns. They do, however, recognize there is a lot of room for innovation.
At the Source Medias Card Forum and Expo, many bankers were comparing the industry to the Wild West, stating that competition for the most affluent and credit worthy customers was like a getting into a knife fight. The competition for those with excellent credit scores is still very high. One banker stated that 4 out of 5 pieces of direct mail is for credit card offers.
Prepaid cards are an area where bankers are struggling to get a foothold. Many banks are unsure how to let customers know what the product is and how to use it. Most customers view prepaid cards as disposable, but banks want to boost retention rates for the cards.