Bank of America Credit Cards: Memories of BankAmericard

by Brian Riley 0

The irony.  Bank of America (BoA), the company behind the 1958’s hit consumer product, BankAmericard, which later evolved to the Visa International payment brand, slipped to 5th place among top tier US credit card issuers.

  • In dollar terms, Bank of America’s U.S. credit and charge volume is basically exactly where it was pre-crisis.

  • While that’s better than AmEx, it subsantially trails JPMorgan and Citi.

And, trails it does.  Chase’s charge volume in comparison, is just shy of $160 billion versus Bank of America’s $60 billion, services nearly 1 out of every 3 US credit card holders, versus Bank of America who’s metric is 1 out of every 10.

  • As a percentage of volume, Bank of America’s card arm has met the same fate as American Express Inc., allowing its market share to slip by almost 50 percent, which sits in stark contrast to JPMorgan.

  • The Jamie Dimon-led bank, with $141 billion in balances, is now in an enviable position, especially if you believe that any broader uptick in loan lossesis manageable.

  • Bank of America’s share of U.S. credit and charge volume has almost halved over the past decade.

There’s a long way to go for BoA to replace their position in the US market.  Their  Fresno experiment,  where they mail dropped 60,000 pre-approved credit cards to residents, spawned the account acquistion strategy.  Hopefully, their new strategy will be just as inspiring.

Overview by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group

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