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comScore Study Finds the Total Number of Consumer Credit Card Applications Submitted Online in Q2 2008 Decreased by 6 Percent Versus Year Ago
RESTON, Va., Oct 27, 2008 /PRNewswire-FirstCall via COMTEX/ --
comScore, Inc.
(Nasdaq: SCOR), a leader in measuring the digital world, today released
results of a study of the online credit card industry, based on both
passively-observed online behavioral data as well as a survey of more than
2,000 Internet users conducted in September 2008. Study findings revealed that
for the first time in the five most recent quarters, the total number of
credit card applications submitted online at the top ten credit-card issuer
sites declined, dropping 6 percent in Q2 2008 versus the same period in 2007.
(Logo: http://www.newscom.com/cgi-bin/prnh/20080115/COMSCORELOGO)
Growth in the Total Number of Consumer Credit Card Applications Submitted
on the Top 10 Credit-Card Issuer Sites*
Total U.S. - Home/Work/University Locations
Source: comScore Credit Card Acquisition Data
Period Percent Change
vs. Year Ago
Q2 2007 28%
Q3 2007 10%
Q4 2007 11%
Q1 2008 8%
Q2 2008 -6%
* Top 10 online credit-card issuers by number of online applications
include: American Express, Bank of America, Capital One, Chase, Citi
Cards, Discover, HSBC, US Bank, Washington Mutual, Wells Fargo; data
was aggregated prior to any of the recent bank mergers
This decline is fueled largely by a drop in application rates among prime
candidates (defined as individuals having the equivalent of a FICO
creditworthiness score of greater than 660), while application rates among
subprime candidates (defined as individuals having the equivalent of a FICO
creditworthiness score of 660 or less) have increased, up 7 percent in Q2 2008
versus year ago.
Growth in the Number of Consumer Credit Card Applications Submitted on the
Top 10 Credit-Card Issuer Sites* by Application Type
Total U.S. - Home/Work/University Locations
Source: comScore Credit Card Acquisition Data
Application Type** Percent Change
Q2 2008 vs. Year Ago
Subprime +7%
Prime -19%
* Top 10 online credit-card issuers by number of online applications
include: American Express, Bank of America, Capital One, Chase, Citi
Cards, Discover, HSBC, US Bank, Washington Mutual, Wells Fargo; data
was aggregated prior to any of the recent bank mergers
** Subprime defined as having a FICO 660 or less; prime defined as having
a FICO greater than 660.
"With historically-low consumer confidence, a tight credit market and
looming uncertainty in the marketplace, it's likely many consumers are doing
all they can to avoid having to take out additional lines of credit. We see
that prime candidates have become particularly cautious during this time,
while subprime candidates remain relatively credit-hungry," said Jennifer
Lanouette, comScore vice president. "Regardless of these shifts in consumer
behavior, it's important for credit card issuers to realize they can still
compete for new customers by appealing to those looking for better rates, card
rewards and service options."
In fact, 67 percent of survey respondents (which includes both subprime
and prime consumers) said they would consider switching their primary credit
card if a better feature were offered by another credit card company. Fifty
two percent of these respondents said a lower APR/interest rate would entice
them to switch, while 38 percent said better rewards/features would prompt
them to make the move.
Question: Would you consider switching to another card issuer for the
following reasons?
Date: September 2008
Source: comScore Credit Card Survey
Reason Percent of Respondents*
Lower APR/interest rates 52%
Better rewards/features 38%
Existing banking or other credit card relationships 3%
Better customer service offered elsewhere 3%
Benefits for holding multiple accounts/cards 2%
Better account management features 2%
* Note: Includes only respondents who said they would consider switching
card issuers.
Online and Mobile Banking Offers Competitive Advantage
Despite changes in the economy, the Internet continues to flourish as a
channel for card issuers to connect with clients, and the number of consumers
logging into accounts online continues to grow. Nearly three quarters of
survey respondents said they have logged onto a credit card Web site, up 4
percentage points versus 2007.
Question: Have you ever logged onto your credit card Web site?
Date: April 2007* and September 2008
Source: comScore Credit Card Survey
Response Percent of Respondents
2007* 2008 Point Change*
Yes 69% 73% +4
No 31% 27% -4
* To demonstrate shifts in the online credit card industry, results from
the 2008 comScore online credit card survey were compared to results
from the 2007 comScore online credit card survey of nearly 2,000
respondents conducted in April 2007.
The mobile channel is also becoming increasingly attractive to consumers
seeking financial information, with the online banking category ranking as the
fastest growing mobile Web category during the past year, up 91 percent in
unique visitors in April 2008 versus year ago.
Mobile Audience Growth by Site Category
April 2007 vs. April 2008
Source: comScore M:Metrics MobiLens Survey of U.S. Mobile Subscribers
Site Category Y/Y Growth in
Unique Visitors
Banking 91%
Search 68%
Traffic 65%
Maps 64%
Weather 57%
News 54%
The 2008 comScore Online Credit Card Report provides a comprehensive view
of changes in consumers' spending, usage and loyalty in light of the current
economy as well as trends in online and mobile banking. To request a copy of
the report, please visit
http://www.comscore.com/request/credit-card-report.asp.
About comScore
comScore, Inc. (NASDAQ: SCOR) is a global leader in measuring the digital
world and preferred source of digital marketing intelligence. For more
information, please visit http://www.comscore.com/boilerplate.
SOURCE comScore, Inc.
http://www.comscore.com
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