India Investment, Stocks, Credit Card and Retail Forum
Credit Cards / Loan Products in India => India Credit Cards / Personal & Business Loans => Topic started by: resh on November 04, 2019, 01:33:24 PM
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The key variables that really move the needle in the Indian Credit Card Industry are as mentioned below:
Number of Cards - Size of the customer base and penetration of existing customer franchise
Expenses - Predominantly includes the acquisition costs, A&P expenses (largest component around reward points), collection & recovery costs and fixed costs (employee, admin etc.)
Spends - Spends drive the interchange fee and higher spends can translate into revolving loans
Revolving Rate - Denotes conversion of card spends into interest-bearing loans - key variable for driving the interest income
Merchant EMI conversion Rates - Denotes conversion of card spends into relatively lower interest-bearing personal loans
Delinquencies - Higher delinquencies/default on loans will suppress the overall profitability