Effective January 1, 2009, Bank of America will no longer offer any of its credit cards through the affiliate-marketing channel. Bank of America joins a lengthy -- and growing -- list of credit-card issuers who have recently abandoned the online channel.
According to a person with knowledge of the situation, Bank of America did not give a time line for a return back to the channel. Bank of America's move, not surprisingly, was prompted by the economic conditions plaguing the industry.
A person that I spoke with at a large affiliate network told me that he has not seen this many card issuers leave the channel at one time. But he does believe that the card issuers will return. I agree with him. Credit-card units are profit centers for banks. There is no way that card issuers will abandon the channel for good. I expect that all of these card issuers will tweak their models, analyze the economy, and return to the market.
In the meantime, though, Capital One looks like the last card issuer standing. It remains active in the affiliate channel and it doesn't look as though it will be leaving anytime soon. Indeed, Internet surfers will likely notice Capital One card offers on a lot more personal-finance and credit-card affiliate sites.
Clarification: Bank of America says that it has not left the channel "completely." In an article published by American Banker on January 5, 2009, Bank of America said that it has discontinued marketing through some sites -- though not all.
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Tuesday, December 30, 2008
Bank Of America Says Adios To Affiliate-Marketing Channel
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13 comments:
I think my readers have had enough about these affiliate channel stories.
Good news: there aren't many cards left in the channel!
Well! What a start to the new year, no?
I agree with the anonymous person interviewed that the creditors will likely return, unless of course, there is a fundamental change in our economy and our lifestyles resulting in decreased emphasis on loans (which I strongly doubt will happen).
What we thinking, 6 months, 1 year, 2 years?
Josh, I told my source that I thought six months was about right. He thought by spring (three months). We shall see.
Would it be naive to bet that maybe one creditor or two might never return?
(You know, sometimes you just say: "I'll see you later" when you really mean to say "So long"?)
Azn, I have just learned that Advanta is leaving the channel as well. Here's the deal: I don't expect all of the credit card issuers to come back. In fact, I expect that some will just go at it alone -- picking up customers without the help of affiliate sites.
So, yeah, I think it's likely that some of these creditors won't be returning.
I believe that Advanta was leaving all but 2 cards, was this right or were they going out 100%?
These are the cards that Advanta is pulling:
Advanta Platinum with Unlimited Rewards BusinessCard
Advanta Customizable Platinum BusinessCard with Unlimited Rewards
Kiva BusinessCard
Kiva Credit Card for Business Professionals
ah ok, just what I thought. Thanks for the quick response and have a great new year!
Anon, have a great new year as well.
seems you need to check your sources. bank of america is still active in the affiliate channel. just check any of the big sites.
From the American Banker story today:
"But Betty Riess, spokeswoman for B of A, said, "We have not pulled out of the channel completely." A Web search showed B of A cards were still available on some third-party Web sites on Friday.
The Charlotte company has discontinued marketing through some sites, Ms. Riess said. "We do periodically evaluate where we market and which cards we feature and may make changes based on a variety of factors, including response and effectiveness."
I got the memo.
Thanks, anon.
BOA pulled out of some of its relationships -- but not all. That's the takeaway.
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