The Paradox of Thrift
Q1 earnings are front & center and based on JPM, C, and BAC earnings, I feel very comfortable predicting that all top issuers will continue this trend of crushing Q1 estimates. Simultaneously, I'd like to draw your attention to the fact that each of these same institutions reduced marketing spend in Q1 2023 (our numbers are being finalized but early reads are very clear). This makes me think of the paradox of thrift.?While the SVB/Regional Bank scare was real, higher consumer spending is also real. Despite higher credit card APRs, consumer spending is robust?and growing when compared with seasonality-adjusted QoQ.?Since everyone else is reducing marketing activity, isn't this the time to gain market share when the noise is limited?
While the top-level dollar amount may be reduced, I do feel the value props are very aggressive. The enhanced earn in the below Freedom Unlimited offer is at the expense of the typical $200 sign-on bonus. This is not Chase's typical offer on their website, but I stumbled?across this via an affiliate?link.
Apple's savings account is another example where the value-prop is extremely strong.
Apple Card gives 2% every time?with Apple Pay (which is pretty universal now) and 3% at a growing list of brands (Apple, Uber, Nike, TMobile, Panera, Exxon, Walgreens, etc.). Now, the addition of savings is an excellent twist. Deposit your daily cash (cashback) into savings that earn 4.15% APY. And if the high earn and high rates aren't attractive enough for the customer, Apple continues to double down on another of their tent poles,?Privacy, by suggesting that "others" may sell your data,?Goldman and Apple do not keep tabs on what you bought,?where you bought, or how much it cost.
Marisa Frys has an excellent report on Personal Loans:
This ongoing line of business series analyzes personal loan spend in the US over the past 12 months from Feb'22-Feb'23, and provides future opportunities for 2023.
The Q1 2023 Fintech Dashboard is updated and ready for you to view on?Omni.
I personally have been loving some of the inflation-busting ads that are showing up everywhere:
Diana Kelter and Biota Li Macdonald put their heads together to provide?3 Tips to Help Brands Thrive During Economic Uncertainty. It's a quick 2-minute read and really well done.
Next, I want to highlight an unbelievably strong report from Lisa Dubina on?Expressions of Identity
领英推荐
And, I recommend pairing this report with Nicole Bond, M.S. 's Audience Strategy deep dive into LGBTQ+:
Brands striving to connect with LGBTQ+ people must go beyond surface-level support and Pride celebrations to drive impactful change for the marginalized community.
Lisa?+ Nicole is a lethal combination. So if you have an Exec off-site or a DEI session, let me know and we can arrange for a roundtable discussion. I mean it when I say, there should be a charge for admission to such an event.
Lastly, there are so many great new innovative updates within the industry that I am torn on which ones to share. Here are my top three:
1.?Amex's carbon emissions tracker. It's live and it's fantastic.
Similar to Bing having a shot at becoming the "search page" of choice, maybe Amazon's dominance as the "search page" for shopping could be up for grabs too. It reminds me of what Dominic Venturo and the team at U.S. Bank were testing with Peri. They were so ahead of their time talking about it in 2014/15.
3. Expedia launches its One Key reward:
It makes me wonder if Plenti was just ahead of its time. Maybe the market is ready for ecosystem rewards once again.
Thank you for reading.
As ever - Anuj