The credit card industry has seen significant growth over recent years driven by an increased need for unsecured short-term credit. The market has seen strong competition by lenders who provide greater access to unsecured credit for consumers with varying added benefits and rewards.
With the increase in acceptance of credit cards by merchants, interchange rates have reduced, and with additional controls in place for services, revenue has increasingly become reliant on revolving credit interest.
This has caused an increased focus on cost and along with increasing regulatory oversight, has led to technology becoming a key enabler to leverage automation and create customer centric journeys to drive efficiency and effectiveness in collections.