Bracing for a rough patch in the credit cycle, Providian Financial
The nation's ninth-largest card lender has funneled more money to
The half-million accounts that were closed this year were inactive or
"Banks make the worst loans in good times," said Shailesh J. Mehta,
All card issuers must grapple with this issue as economists warn of a
Mr. Mehta said his organization's solution has been to pursue account
The results have been positive so far.
For the third quarter, net interest income increased by 70%, to $82.6
For the quarter, net income rose 31%.
Mr. Mehta, a card industry veteran steeped in the science of data
These and other credit losses result from bankers' losing sight of "the
Mr. Mehta said money-losing lenders were guilty of "giving billions of
As an additional safeguard, Providian has embarked on making check-up
It has enhanced its scoring models that look for "trigger events" that
Providian has repriced the portfolios it purchased from First Union
Providian continues to seek growth in the subprime market.
In May it introduced Visa Plastic, for customers with impaired credit.
It has opened 200,000 accounts and hopes to have 500,000 by yearend
Mr. Mehta said lending decisions must come down to knowing the customer: