In such areas as credit cards, leasing, and mainstream loans, due to large scale efficiencies in credit marketing, and up-selling of additional products such as highly profitable credit insurance, banks are forced to realize the difficulties in challenging large credit card issuers. As a result, mid-sized credit card issuers are beginning to bow out of the business as credit card power houses move in. Additionally, borrowers are finding it easier and more convenient to visit strip mall based lenders such as The Money Store and Beneficial over the more intimidating banking institution. However, banks are far from relinquishing their market share to finance companies. With the banking industry whittling away at the Glass-Stegall Act, typical arenas untouched by banking powerhouses will soon be muscling into industries such as brokerages and insurance.
Some banks already sell insurance with certain restrictions.
Additionally, banks are increasing their focus on credit card affiliations with airlines and other high profile industries. Role of Research and Development Institutions specializing in credit cards are finding it easier to get to credit borrowers through affinity cards, as in MBNA offering a Circuit City credit card, and special offers such as frequent flyer cards and cash back programs. Additional partnerships have been created with auto companies, phone companies, travel agencies, and even American Express is allowing other companies to issue it's card. Mercury Finance, which typically offers auto loans to poor credit drivers, has improved returns by extending credit cards to these same borrowers. Most development is targeting foreign markets.