Monthly Archives: July 2011

Latest Nilson Report highlights recovery in small business credit card spending

The Nilson Report has published its annual rankings of the leading U.S. commercial card issuers (by spending volume).  These ranking are broken out into various commercial card categories, such as purchasing cards and small business credit cards. A quick analysis of The Nilson Report data by EMI uncovered the following trends in small business credit card and small business debit card volume:

  • Small business credit card volume rose 6% in 2010, following a decline of 9% in 2009
  • Of the 20 leading small business credit card issuers, only one (Bank of America) reported a decline in volume between 2009 and 2010
  • Small business debit card volume grew by 16% in 2010, compared to a rise of just 4% in 2009
  • Of the top 20 small business debit card issuers, only one (TD Bank) reported a decline in volume in 2010, and 10 of the top 20 reported annual increases of more than 20%

Emergence of fixed-rate student loans

As we enter the main student lending season, two leading banks–U.S. Bank and Wells Fargo–have launched fixed-rate pricing on student loans.  The rate on the U.S. Bank Fixed Rate Student Loan is 7.99%.  Wells Fargo has fixed-rate pricing on four of its student loans, with rates as low as 7.75%.  With this new pricing, the two banks are aiming to differentiate themselves from student lending competitors.  They are also playing on a growing expectation that U.S. interest rates will rise in the coming months.

As these banks have a high profile in the student market, other leading private student lenders will be tempted to follow suit with their own fixed-rate offers.  And the second quarter financials of these banks will be scrutinized in the coming weeks for any indications of a rise in student loan originations.