1 hr ago
Private-Credit Firms Seek Role in JPMorgan’s Card Empire
JPMorgan gives credit cards to many people and businesses.
Sometimes, it rejects card applications.
The bank is now exploring whether other companies could review some of those rejected applications.
These companies would decide whether to approve the applicants.
They would also take on the risk if the applicants failed to repay their debts.
JPMorgan contacted more than a dozen organizations about this idea.
The process is being called second-look applications.
Private-credit firms are interested in possibly becoming involved.
JPMorgan is the largest U.S. credit-card issuer by purchase volume.
The bank is examining whether outside funding sources could approve some applications it rejects.
JPMorgan contacted more than a dozen entities about potential second-look applications.
Those entities could assume the risk of approving applicants rejected by JPMorgan.
Private-credit firms are showing interest in participating in the card business.
- Who
- JPMorgan and more than a dozen potential outside funding entities, including private-credit firms.
- What
- JPMorgan is exploring whether outside entities could approve some credit-card applications that the bank rejects.
- Where
- When
- Recently; no specific date is provided.
- Why
- To determine whether other funding sources would take on the risk of approving applications rejected by JPMorgan.
Key facts
- Company
- JPMorgan
- Market position
- The biggest U.S. credit-card issuer by purchase volume
- Proposal
- Outside entities could review and approve some applications rejected by JPMorgan
- Number contacted
- More than a dozen entities
- Process name
- Second-look applications
- Risk allocation
- The outside entities would take on the risk of approving the applications
Sources
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