Consumer Finance: Expert Insights: Demand trends in Premium Card

Research evidence excerpt

Consumer Finance: Expert Insights: Demand trends in Premium Card

o capture more wallet share. The survey is

consistent with multi-card behaviour among premium customers. Mintel noted the shift

will likely be led by Amex refreshing some of its Delta products as Delta alluded to on its

first quarter earnings call, potentially followed by some other airline card refreshes.

More than half of Amex’s marketing spend is currently being directed towards Platinum,

which Mr. Shahani thinks will shift to Delta in the second half of this year. Mr. Shahani

also expects a Savor X card to be released by Capital One that is designed to compete

with Amex Gold and can complement Venture X’s travel benefits with a dining focus.

One to watch: US Bank may be on the precipice of new

product launches

Mintel specifically called out U.S. Bank as one to watch, citing higher marketing, new

products, executive hiring and AI-related job openings as signals that “something’s

cooking.” The path will be made easier by the fact that the top issuers in premium cards

may be directing their efforts / marketing dollars towards co-brand soon. US Bank

already has its Altitude Reserve card, which has a $400 annual fee, but may expand and /

or enhance its premium offerings. US Bank also just took over issuing the Amazon

Business and Prime Business credit cards.

Regionals, smaller issuers focus on niche in premium

Beyond the US Bank signals noted above, Mr. Shahani noted that while the premium

market is concentrated among the big four it is not closed. Consumers are willing to hold

multiple cards and switch between issuers. Regionals and new entrants compete by

building niche premium propositions around specific customer segments, banking

relationships, and differentiated value. He noted Wells, Citi, U.S.