A starter credit card is designed for people who have a limited credit history or no experience with credit at all. These cards provide access to the credit system, helping users establish a positive credit history as they use the card responsibly and pay their bills on time each month. In general, there are three types of starter credit cards which include secured credit cards, student credit cards, and unsecured credit cards for bad or no credit.
The starter credit cards market is driven by the rise in emphasis on financial inclusion. Starter credit cards offer a pathway for younger demographics or individuals with lower incomes to access financial services and establish a credit history. As a result, the demand for starter credit cards is driven by the broader goal of fostering financial inclusivity and providing opportunities for those who do not qualify for traditional credit cards. For instance, in November 2021, OpenSky, the digital banking division of Capital Bank, N.A., expanded its product offering with the addition of the OpenSky Visa Gold Card. The OpenSky Gold Card is an unsecured credit card that complements the highly rated OpenSky Secured Visa Credit Card, tagged by Forbes ADVISOR as a “good option to help rebuild your credit.” This new addition offers an uninterrupted experience for OpenSky customers who now more easily continue in their journey from secured to partially secured to unsecured credit card. In addition, the advancements in digital technology have transformed the starter credit cards landscape. The rise of online banking, mobile apps, and digital payments has streamlined the application processes, approval mechanisms, and overall account management for starter credit cards. The convenience offered by digital platforms has become a key driver in the growth of the starter credit card market, aligning with the evolving expectations of consumers in the digital age. However, the limited credit limits and higher fees associated with starter credit cards hamper the market growth. Furthermore, the delicate balance of credit risk management, as stringent practices may lead to rejections for those with limited credit history restraint the growth of the market. On the contrary, leveraging advanced analytics and alternative data sources presents an opportunity for financial institutions to assess creditworthiness more accurately, potentially expanding the market reach of starter credit cards in the upcoming years.
The global starter credit cards market is segmented into type, annual fee, provider, and region. On the basis of type, the market is categorized into student credit card, secured credit card, and unsecured starter credit card. On the basis of annual fee, the market is bifurcated into no annual fee card and low annual fee card. On the basis of provider, the market is differentiated into banks, NBFCs, credit unions, and others. On the basis of region, it is analyzed across North America (the U.S. and Canada), Europe (the UK, Germany, France, Italy, Spain, and rest of Europe), Asia-Pacific (China, Japan, India, Australia, South Korea, and rest of Asia-Pacific), Latin America (Brazil, Argentina, and rest of Latin America), and Middle East and Africa (GCC Countries, South Africa, and rest of Middle East and Africa).
The key players operating in the global starter credit cards market include Discover Bank, American Express Company, Capital One, Deserve, Credit One Bank, N.A., Citigroup Inc., Bank of America Corporation, JPMorgan Chase & Co., U.S. Bank, and OpenSky. These players have adopted various strategies to increase their market penetration and strengthen their position in the starter credit cards industry.
The starter credit cards market is driven by the rise in emphasis on financial inclusion. Starter credit cards offer a pathway for younger demographics or individuals with lower incomes to access financial services and establish a credit history. As a result, the demand for starter credit cards is driven by the broader goal of fostering financial inclusivity and providing opportunities for those who do not qualify for traditional credit cards. For instance, in November 2021, OpenSky, the digital banking division of Capital Bank, N.A., expanded its product offering with the addition of the OpenSky Visa Gold Card. The OpenSky Gold Card is an unsecured credit card that complements the highly rated OpenSky Secured Visa Credit Card, tagged by Forbes ADVISOR as a “good option to help rebuild your credit.” This new addition offers an uninterrupted experience for OpenSky customers who now more easily continue in their journey from secured to partially secured to unsecured credit card. In addition, the advancements in digital technology have transformed the starter credit cards landscape. The rise of online banking, mobile apps, and digital payments has streamlined the application processes, approval mechanisms, and overall account management for starter credit cards. The convenience offered by digital platforms has become a key driver in the growth of the starter credit card market, aligning with the evolving expectations of consumers in the digital age. However, the limited credit limits and higher fees associated with starter credit cards hamper the market growth. Furthermore, the delicate balance of credit risk management, as stringent practices may lead to rejections for those with limited credit history restraint the growth of the market. On the contrary, leveraging advanced analytics and alternative data sources presents an opportunity for financial institutions to assess creditworthiness more accurately, potentially expanding the market reach of starter credit cards in the upcoming years.
The global starter credit cards market is segmented into type, annual fee, provider, and region. On the basis of type, the market is categorized into student credit card, secured credit card, and unsecured starter credit card. On the basis of annual fee, the market is bifurcated into no annual fee card and low annual fee card. On the basis of provider, the market is differentiated into banks, NBFCs, credit unions, and others. On the basis of region, it is analyzed across North America (the U.S. and Canada), Europe (the UK, Germany, France, Italy, Spain, and rest of Europe), Asia-Pacific (China, Japan, India, Australia, South Korea, and rest of Asia-Pacific), Latin America (Brazil, Argentina, and rest of Latin America), and Middle East and Africa (GCC Countries, South Africa, and rest of Middle East and Africa).
The key players operating in the global starter credit cards market include Discover Bank, American Express Company, Capital One, Deserve, Credit One Bank, N.A., Citigroup Inc., Bank of America Corporation, JPMorgan Chase & Co., U.S. Bank, and OpenSky. These players have adopted various strategies to increase their market penetration and strengthen their position in the starter credit cards industry.
Key Benefits for Stakeholders
- The study provides in-depth analysis of the starter credit cards market along with current trends and future estimations to illustrate the imminent investment pockets.
- Information about key drivers, restraints, & opportunities and their impact analysis on the starter credit cards market size are provided in the report.
- The Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
- The quantitative analysis of the starter credit cards market from 2022 to 2032 is provided to determine the market potential.
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Key Market Segments
By Type
- Student Credit Card
- Secured Credit Card
- Unsecured Starter Credit Card
By Annual Fee
- No Annual Fee Card
- Low Annual Fee Card
By Provider
- Banks
- NBFCs
- Credit Unions
- Others
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- Latin America
- Brazil
- Argentina
- Rest of Latin America
- Middle East and Africa
- Gcc Countries
- South Africa
- Rest of Middle East And Africa
Key Market Players
- Discover Bank
- American Express Company
- Capital One
- Deserve
- Credit One Bank, N.A.
- Citigroup Inc.
- Bank of America Corporation
- JPMorgan Chase & Co.
- U.S. Bank
- OpenSky
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: STARTER CREDIT CARDS MARKET, BY TYPE
CHAPTER 5: STARTER CREDIT CARDS MARKET, BY ANNUAL FEE
CHAPTER 6: STARTER CREDIT CARDS MARKET, BY PROVIDER
CHAPTER 7: STARTER CREDIT CARDS MARKET, BY REGION
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILES
List of Tables
List of Figures
Companies Mentioned
- Discover Bank
- American Express Company
- Capital One
- Deserve
- Credit One Bank, N.A.
- Citigroup Inc.
- Bank of America Corporation
- JPMorgan Chase & Co.
- U.S. Bank
- OpenSky
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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