August 13, 2010

• Let Citibank Let You Get In Control, Pt.2
     Thinking smart.

  Previous...

  It's true that credit card companies such as Citibank and major networks such as MasterCard generate income from the amount of spending cardholders do. So why would these companies be interested in helping cardholders reduce credit card spending? Lenders want to think smart; thinking smart means that lenders are interested in capturing the prime business. If you want to capture prime business, you need to offer individuals and small businesses products that will help them become more efficient and cost effective. Offering these services encourages customer loyalty. Helping customers manage their finances also keeps them out of trouble and thereby reducing the amount of credit card defaults. MasterCard and Citibank are also confident that parents will also enjoy the capabilities of obtaining a card for their student that will provide them with the ability to regulate his/her spending.

  Banks have an additional incentive for signing cardholders up with the inControl MasterCard service. As cardholders increase the use of the service, they will find that managing their finances become easier to manage with the use of their debit and credit cards. It soon becomes a domino effect whereby the cardholder will actually increase the use of his debit or credit card. The increase generates income for the banks and networks. Small businesses will also take a serious look at the service and readily switch to Citibank to help manage employee spending which can often become a difficult thing to manage.

  In regard to MasterCard's choice to partner with Citibank for the launch of inControl in the U.S., Citibank needs to work on its tarnished reputation among those companies with some of the highest credit card defaults in the industry. Offering inControl will be a major attraction for cardholders with its competitors looking to find ways to become more financially healthy. Offering a product that allows cardholders to cut-off certain categories of spending, like dining out, will be a major draw for Citibank.
  
  Back to Articles Main Page