You can now add HSBC to the list of credit-card companies leaving the affiliate marketing channel. HSBC's pullout is effective December 9, just five days from now. HSBC hopes to return to the channel in March 2009, according to a letter sent to affiliates today. HSBC's move follows on the heels of recent moves by Citibank and Chase.
Last month, Chase removed all of its cards from the channel (story link here). Citibank announced yesterday that it is pulling a large number of its credit cards from the online-marketing channel as well, effective December 31 (story link here).
In the meantime, current affiliates must "remove all HSBC, Orchard Bank, and Household Bank credit cards" from affiliate Web sites on December 9. Citibank said its decision to pull many of its cards from the channel is due to the "state of the market." Chase, which had affiliates remove credit cards immediately, cited "current market conditions." It was unclear as to why HSBC decided to make the move.
That's now three high-profile departures in the past two weeks.
Does anyone think it stops with Citibank, Chase, and HSBC?
I don't.
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Thursday, December 4, 2008
HSBC Joins The Party: To Exit The Affiliate Marketing Channel
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14 comments:
Oh, it'll continue on. And the banks will say they need more money. Yet I doubt we'll see them selling off their naming rights to various public venues. Haven't heard of any bank CEOs cutting their salaries/bonuses either.
And this just means less lending for everyone. At a time when everyone is wringing their hands about the consumer not being able to get loans, the card companies are decreasing the number of channels where a potential customer would find such funding opportunities.
Game still changing!
These little scooplets are nice. Wonder when anyone will start caring.
I do think it's part of the larger plan to rein in limits. Cut limits and offer fewer opportunities to apply.
Until more competition for business forces the big banks to change their strategies, this will continue in my estimate. If citizens would increase their ability to save and rely less on carrying credit card balances, maybe we could force the game to swing back in our direction. Given that we seem to have a wide scale problem with revolving debt, maybe fewer opportunities to apply while many debts are defaulting is not such a bad thing after all.
It's interesting they set a date they might return as March of '09. I certainly hope so, and you know why CM!
Chase did the same thing. They said they hoped to return to the channel next year. We'll see.
Well, with the recent acquisitions and bailouts, we now have less competition. Should not bode well for consumers down the road.
Sheesh...they are all leaving left and right!
Yep. Looks like they are just pulling in and hunkering down. We'll see how long it takes to come back.
Fact is, I think this affiliate channel is a good place to gauge card company sentiment. When they start coming back, perhaps it will be a signal that things have turned.
"Does anyone think it stops with Citibank, Chase, and HSBC?"
Also, don't forget Amex pulling out on their business cards.
Oh, yeah. That too.
let me know if you want more details on hsbc's decision...
Anon, shoot me an email at plastic101@gmail.com
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