On-Line Marketing Works Best for Credit
Card Products

A recent release from CardTrak suggests that online marketing of financial services is economical only in the case of credit cards. PSI Global reports that 23 percent of consumers searching for mortgage loans applied online, while only 16 percent of shoppers for auto loans applied online. In sharp contrast, 61 percent of consumers seeking credit cards applied for them over the Internet. Card issuers found that online applications were much less costly than applications by direct mail: $43 per account vs. $69. (It would be interesting to know if there was any difference in credit performance.) When asked why they shied away from applying for mortgage and auto loans online, consumers responded that those lenders asked for too much confidential information.