Consumer Credit in the USA Drivers and Technology Trends

November 1, 2001

Abstract

Boston, MA, USA November 1, 2001

Consumer Credit in the USA優rivers and Technology Trends

Celent Communications predicts record-breaking levels of bankruptcies in 2001 and 2002, which will change IT priorities at leading lenders. Overall, US banks will spend close to US$10 bn on technology related to retail lending in 2002.

In a new report, entitled Consumer Credit in the USA優rivers and Technology Trends Celent examines the current state and future trends impact IT with the US consumer lending industry across all major loan products, including credit cards, mortgages, home equity and personal lines of credit.

The report predicts that there will be over 1,500,000 bankruptcies in the USA in 2001, setting a new record. The forecast for 2002 calls for an even greater number of individuals being forced into declaring bankruptcy.

According to

Octavio Marenzi, managing director at Celent, "collections systems, risk management, and portfolio monitoring will be near-term focus areas for lenders, given the downturn that has occurred in the US economy. Currently, US card issuers recover about one-third of charged-off debt. Technologies which help them improve their debt recovery will be well-received as delinquency and bankruptcy rates continue to climb." A Table of Contents is available online.

of Celent Communication's Retail Banking research service can download the report electronically by clicking on the icon to the left.

        

Send mail to info@celent.com with questions or comments about this Web site.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

Boston, MA, USA November 1, 2001

Consumer Credit in the USA -  Drivers and Technology Trends

Return to Abstract

EXECUTIVE SUMMARY 3
INTRODUCTION 4
MAJOR TRENDS IMPACTING CONSUMER CREDIT 5

 

Economic Conditions

5

 

Convergence

5

 

Privacy

6

 

Internet

6

THE BUSINESS PROCESS BEHIND CONSUMER LENDING 8

 

Cards

8

INFORMATION TECHNOLOGY SPENDING: LOOKING AHEAD TO 2002 14

 

Consumer Credit

15

 

Mortgages

16

 

Credit Cards

20

 

Installment Loans

24

CONCLUSIONS 28
APPENDIX 29

 

        

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