TCS is singularly focused on issuing and servicing consumer credit cards. By combining a purpose-built platform with dedicated staff, TCS can serve millions of customers.
Russian consumer lending expanded by 90% in 2006 and is expected to grow at 47% CAGR through 2010 driven by:
- strong macro-economic performance and outlook: nominal USD GDP has grown at CAGR 27% in 2001—2006 and is forecast to increase by 19% CAGR through 2010;
- Russian consumers continue to be under-levered: consumer debt at 7.6% of GDP in 2006 vs 18% in Poland 16% in Kazakhstan.
Credit card lending is the fastest growing consumer debt category:
- credit card balances were $2bn in 2006, up 100% YoY, growing at same rate as mortgages;
- credit card lending expected to grow at 113% CAGR (vs. 90% CAGR for mortgages) to reach $42bn balance in 2010.
TCS is growing its credit card market share:
- TCS will exploit the credit data that has already accumulated in credit bureau to tap into the market. This is analogous to the entry of the US credit card monoliners into the UK market in the 80’s.