Credit cards offers were pulled back and banks were on high alert during 2009 which is when the world witnessed the worst recession in recent times. The legislative and economic pressure saw lesser credit card flyers land in the mailboxes. This drop has been the lowest for the last 17 years.
However, that is now a thing of the past. With the economy showing a slight improvement, 2010 has started off on a positive note. The report by Synovate Mail Monitor shows that over 480 million homes in the United States got credit card offers from various banks and financial institutions in the first quarter of 2010. As compared to the same quarter last year, there has been a 29% increase which is a sure sign of improving financial times.
The Director of Competive Tracking Services at Synovate Mail Syndication, Anuj Shahani, said "In Q4 2009 we began to see issuers release the pause button and mail more, and in Q1 2010 that trend continues. Throughout the remainder of the year we expect to see mail volume continue its slow climb upward."
Leading the pack of largest mailers was Capital One closely followed on the heels by Chase. The good results for the first two quarters of the current financial year have given Capital One the boost it was looking for. Post a 100% pullback in the third quarter of 2009, Capital One announced that it is considering reentering the subprime market soon. The number of flyers sent out by the bank stands to prove the same.
This is not the only surprise this year. Badly hit by the recession, hsbc was considering pulling out of the US credit card segment. However, as opposed to this thought, the bank has doubled the volume of mail sent in the first quarter of 2010 as compared to the mails that were sent out in the final quarter of 2009. The number of mails sent out by the bank is three times the number that was sent out in the corresponding quarter last year.
Shahani went on to add, "This is a massive commitment in terms of expenditure for the issuers as direct mail is one of the most expensive channels to acquire new cardholders. This tells us that the issuers are not just dipping their toes in the water, they are diving in head first."