Wells Fargo & Co. is expanding its credit card offering to compete with its competition, but the push “just isn’t rocket science,” said managing director Charlie Scharf.
“Our product was not competitive,” Scharf said Tuesday at the Goldman Sachs financial services conference in the United States. “Our rewards were not competitive, our customer service was not competitive, our lines of credit were not competitive, our experience with fraud, go on and on – all the things that make great experiences with a card.
In the two years since Scharf took charge of Wells Fargo, he has repeatedly indicated that changes in the credit card industry are a priority. The bank is unusually imbalanced among U.S. card issuers, ranking No. 2 for debit cards but No. 8 for credit cards, according to the Nilson Report newsletter.
Wells Fargo launched a credit card listing this year, starting with a flat 2% cash back rate on all spending with no annual fee. It has also introduced a low interest rate card and is planning a line of rewards cards next year.
Also among Scharf’s comments:
• Consumers have 30% to 35% more in their deposit accounts now than before the Covid-19 pandemic, he said, adding that the figure is “fairly consistent” across wealth levels.
• “Inflation is very, very real,” Scharf said, adding that he was “not nervous” that the Federal Reserve is moving too quickly on interest rates. There is “certainly an argument to be made that they should go faster than they have been,” he said.
The board of directors of the CFP is committed to upholding the standards: Keller
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