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2015-08-12

Auriemma Consulting Group UK, Ltd.: The Cards Market Continues to Deliberate on the Future of Co-branding While Interchange Regulation Begins to Manifest, Acco

LONDON, Aug. 12, 2015 (GLOBE NEWSWIRE) -- 2016 is likely to be a pivotal year
for the UK's credit card market as issuers realise the full impact of
interchange reduction on profitability. In recent months, response strategies
have become clearer, and a number of issuers have cut-back or entirely
removed rewards programmes.

Consequently, within the co-brand market, there is a heightened sense of
caution as both issuers and partners work to maintain a compelling and
profitable customer proposition.

Despite the pressure of a reduced value pool, co-branding still remains an
important element of the credit card market. With a number of issuer
programmes having their benefits reduced, customers are increasingly likely
to find better value from retail propositions who have a lower cost of
providing benefits than traditional issuer led rewards.

"Customers highly value the rewards offered by co-branded cards and despite
the more testing economics, issuers and partners must work together to
deliver on customer expectations," said Mark Jackson, Managing Director of
ACG's International Partnership practice. "Engaged cardholders are much more
loyal to the partner's brand, buying more products over a longer period of
time, while improving the underlying performance of the partner's business.
Those that can retain a strong proposition and marketable customer base will
be best positioned to reap the benefits of a successful partnership."

Impending regulation could ultimately galvanise the industry and we may see a
number of issuers and partners positively altering the construct of
propositions rather than simply diluting rewards. A mindset shift is required
to be able to operate in the new environment - ACG recommends that partners
discover the true motivational factors that drive cardholder spend and focus
their programmes around this.

ACG constantly supports partners and issuers in navigating through the
regulation process with engagements ranging from strategic reviews and
programme launches to programme optimisation and new product development. Our
range of engagements allow us to deeply understand how different businesses
are affected by regulation and advise how individual programmes can adapt
most effectively.

About Auriemma Consulting Group

ACG is a boutique management consulting firm with specialised focus on the
Payments and Lending space. We deliver actionable solutions and insights that
add value to our clients' business activities across a broad set of industry
topics and disciplines. Founded in 1984, ACG has grown from a one-man shop to
a nearly 50-person firm with offices in New York and London. For more
information about ACG's International Partnership practice, please contact
Mark Jackson at 0207 629 0075 ormark.jackson@acg.net.

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Auriemma Consulting Group UK, Ltd. via Globenewswire

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