Applications among “Prime” Candidates Fall
Increase in Searches Reflects Economic Distress
RESTON, VA, July 14, 2008 – Comscore, Inc. (NASDAQ: SCOR), a leader in measuring the digital world, today released a study on the online banking and credit industry, which showed that the number of online credit card applications submitted by subprime applicants (defined as individuals having the equivalent of a FICO creditworthiness score of 660 or less) increased by 30 percent in Q1 2008 versus the same period last year. Meanwhile, the number of applications submitted by prime applicants (defined as individuals having the equivalent of a FICO score greater than 660) declined by 16 percent. The results will be discussed in greater detail during a Comscore webinar presentation on the state of the online banking and credit card industry to be held on Thursday, July 17 at 2:00 p.m. ET/ 11:00 a.m. PT (webinar details below).
Total Credit Card Applications Submitted OnlineDate: Q1 2007 vs. Q1 2008Total U.S. – Home/Work/University LocationsSource: Comscore Online Credit Card Acquisition Benchmarker
Number of Applications Submitted Online(000)
Applicant Type*
Q1 2007
Q1 2008
Percent ChangeY/Y
Total
9,890
10,672
8%
Subprime
5,174
6,716
30%
Prime
4,716
3,956
-16%
*Subprime defined as individuals having the equivalent of a FICO score of 660 or less; Prime defined as individuals having the equivalent of a FICO score greater than 660.
“During challenging economic times, it’s not surprising to see dramatic shifts in consumer behavior in the online banking and credit card industries,” said Kevin Levitt, Comscore vice president. “With subprime candidates comprising an increasingly large share of the market for new credit card applications, it’s essential that marketers are equipped with the insights needed to optimize their tactics in the midst of changing market dynamics.”
Rise in Online Searches Reflects Economic Distress
Changes in online search behavior can represent a barometer of the economic issues affecting U.S. consumers. Searches for several terms relating to the online banking and credit industry increased significantly in Q1 2008 versus year ago. According to data from Comscore Marketer, the number of searches for the term “cash advance” more than doubled, while the number of searches for the term “foreclosure” jumped 68 percent. Other terms that have increased in search volume include “credit card” (up 20 percent), “mortgage” (up 13 percent), and “bad credit” (up 9 percent).
Searches* for Banking and Credit-Related TermsDate: Q1 2007 vs. Q1 2008Total U.S. – Home/Work/University LocationsSource: Comscore Marketer
Search Term
Total Number of Searches(MM)
Percent Change Y/Y
Bad Credit
3.71
4.06
9%
Cash Advance
0.64
1.36
113%
Credit Card
15.77
18.93
20%
Foreclosure
4.18
7.03
68%
Mortgage
21.69
24.58
13%
*Based on broad matches of the search term.
“Online behavior offers insight into the minds of consumers and how they’re affected by current economic conditions,” said Levitt. “In order for financial industry marketers to meet the needs of their customers, it’s important to have a firm understanding of their customers’ most pressing concerns and deliver products and services that map to these needs in a profitable manner.”
Additional results from the Comscore study will be presented during a 1-hour, live webinar entitled “Industry Insights: Credit Cards and Banking” on Thursday, July 17 at 2:00 p.m. ET/ 11:00 a.m. PT. To register for the webinar, please visit: https://www1.gotomeeting.com/register/316294436.
About ComscoreComscore, Inc. (NASDAQ: SCOR) is a global leader in measuring the digital world. For more information, please visit www.comscore.com/boilerplate.