While prime and super-prime consumers navigate a plethora of choices often driven by rewards, non-prime consumers are left out.
In an interview with PYMNTS CEO Karen Webster, Concora Credit CEO Bruce Weinstein detailed ways that providers (banks and non-banks, including merchants) can meet non-prime consumers’ needs with co-brand and private-label cards.
For most consumers, credit cards are synonymous with rewards programs — airline miles, hotel points or cash back — incentives that often dictate top-of-wallet preference. However, this calculus shifts for non-prime consumers, a demographic Weinstein defined as encompassing anywhere from 60 million to 100 million consumers in the United States.
“The simple definition is the people who are not well-served by the big banks,” he said.
Banks don’t reach those consumers due to regulatory or capital constraints. Unlike their prime and super-prime counterparts, non-prime consumers “just don’t have all those options,” he said.
The void left by traditional banking institutions has created an opportunity for non-bank providers to step in and provide credit access. Concora Credit serves as a second-look provider for many large retailers, stepping in when primary lenders may not offer solutions.
Concora Credit’s Blueprint: A Model for Non-Prime Loyalty
Concora Credit operates primarily supporting store brand private-label programs and a large Mastercard business. In the private-label space, Concora Creidt observes “very high repurchase rates” for its cards, a contrast to the “one and done” nature often seen with prime consumers, Weinstein said.
This recurring engagement underscores the value non-prime customers place on continued credit access. For the Mastercard business, loyalty is measured by “very little voluntary attrition,” leading Concora Credit to intuit a high degree of customer commitment to the product, he said.
The company has approximately 6 million active customers across its platform. These customers typically carry multiple cards, with roughly 65% also holding a Capital One card in their wallets, indicating that Concora Credit’s products are part of a broader credit portfolio rather than being the sole option. To drive continued engagement and what Weinstein termed “top-of-wallet” preference, Concora employs integrated marketing programs with its retail partners, constantly reminding customers of their credit line and available promotions.
The company’s expertise lies in understanding the specific nuances of its customer base in an environment where, as Weinstein remarked, “Retailers are under margin pressure” and, in general, “store brand cards, if they have a long history of offering long-term free financing, those sorts of things can be very expensive.”
While some merchants are “transactional” and primarily focused on securing a single sale, Concora Credit’s most successful partnerships are with retailers who appreciate the “lifetime value-oriented” nature of credit for this segment, he said. The company has been expanding distribution channels, such as growing its direct-to-consumer Mastercard business and building out co-brand programs.
Asked by Webster about BNPL as a threat to traditional credit, Weinstein said BNPL doesn’t necessarily redefine loyalty but rather expands the available options. Historically, BNPL has focused on small-ticket items compared to Concora Credit’s emphasis on larger and recurring purchases, but as both sectors grow, “we’ll find ways to run into each other,” Weinstein said.
However, for non-prime consumers, the fundamental benefit remains the ability to participate in purchases that might otherwise be out of reach.
A Vigilant Outlook: The Enduring State Consumer
Despite ongoing macroeconomic uncertainties, Weinstein said he has a steady outlook on the non-prime consumer base. From Concora Credit’s perspective, the credit book is “very stable” with no “particularly alarming” trends observed. The company continues to say “yes” to as many, if not slightly more, consumers than a year ago, a foundation cemented by constant refinement of its models and focus on a relatively narrow consumer segment.
A key characteristic of non-prime consumers is their inherent responsibility, Weinstein said. Individuals in this segment may be new to credit or have “had a bump in the road” personally or had a job change recently, which may have impacted their credit profiles. Concora’s objective is to identify those “on their way up.”
“Our ability to serve this customer across all these different channels and do it consistently, driving the returns we need, the customer experience we need, that’s our secret sauce,” Weinstein said.
