AnnaMaria Andriotis
speaker
201 appearances
3 recordings
1 series
first heard Dec 2018
last heard Oct 2019
AnnaMaria Andriotis’s voice in public audio — every appearance, attributed to the second.
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Appearances
WSJ Your Money Briefing · Interest Rates Are Falling. Why Aren't Credit Card Rates? · 15 Oct 2019
podcast
These rewards credit cards, whether it's cash back or points.
Right.
And so these rewards programs have not been as lucrative as the banks would have liked them to be.
And in fact, they've actually been pushing down on credit card divisions' profits.
So as lenders are looking to improve profits, they've turned to interest rates.
They've turned to one of the more obvious places where they could improve their returns.
Yes.
No, not entirely.
I mean, really, since the last year that lenders saw an increase in their credit card profits was in 2013.
Every year after that, that number, the return on assets that big banks with big credit card divisions were getting increased.
was declining the only time since then that we saw a turnaround actually was last year last year is when we started to see the real increase in margins that lenders are tacking on to these interest rates so one would think that at a time when in total u.s credit card debt at this point is over 1 trillion dollars and has mostly been rising one would think well so many people are carrying balances
people who carry balances should be enough to just deliver the returns that the banks want.
Well, it turns out that's not the case because these rewards programs that banks have been rolling out and touting to consumers for many years are eating into a lot of what would otherwise just been their profits.
And a big reason for that is there's a lot of savvy consumers out there, right?
People who are able to pay their bills in full every month.
and who maximize these cards, meaning that they will spend as much as they need to in the first three months to get those sign-up bonuses that then help them get that free airfare.
And then guess what?
After doing that, they move on to the next card where they can do the same thing.
So there's been this trend for several years now of gamers saying,
that have really eaten into the banks' profits.
Showing 21–40 of 201 · page 2 of 11
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