Wells Fargo sees drop in Credit card sales in February

Company - Nikhil S - Mar 21,2017

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wells fargo sees drop in credit card sales in february

February witnessed a reduction in credit card applications and checking accounts with Wells Fargo & Co (WFC.N), the bank informed on Monday, highlighting the sixth straight month of reduction.

Cross selling credit cards to loyal customers has been Wells Fargo’s focus for some time, yet it started to heighten efforts to hit new credit card customers, sending unsolicited mails to increase the marketing.

From January customers started 3 % lesser checking accounts, and 43 %, or 0.3 million, lower as compared to the figures in February 2016, based on a company statement.

Requests for credit card application saw a 4 % monthly reduction and a 55 % drop annually, its highest rate after the emergence of its September 2016 illegal sales practices at its retail branches.

The shares of Wells Fargo were also low at 1.4 percent in afternoon trading from $57.80. Analysts labeled February's retail outcome as a mixed bag, whilst lesser customers started new accounts from February 2016 the total quantity of primary consumer checking customers increased to 23.5 million by 1.9 percent, primarily owing to lesser customers wanting to close their accounts.

Wells Fargo's head of community banking, Mary Mack, informed using a statement that it will require time for them to adapt to the changes in their business, since their focus is in reinforcing relationships with the loyal customers and building future customers.

Mack added, since factoring in day count differences, the February trends were normally close to the ones noted in January.

Wells Fargo has been reporting every month about customer activity at its branch banking unit after it acquired the $185 million settlement with regulators in September over creating as much as 2.1 million accounts in customers' names with no permission. Thereafter, this third-largest U.S. bank has been encountering added government lawsuits and searches, and its board said that an internal review might reveal similar uncertain incidents.