Matthew Massaua to lead credit card division starting in 2018.
In hopes of improving profitability for credit cards, JP Morgan Chase & Co. is bringing over a leader from competitor Barclays PLC to lead the division. Fox Business reports that Matthew Massaua will take over credit cards from current executive Lisa Walker, starting on January 1, 2018. Walker will move to a new role inside the banking giant.
According to his LinkedIn profile, Massaua last held the title of Managing Director, Head of Partnerships and Small Business for the British banker. During his 12 years with the company, Barclays managed relationships with a post-merger American Airlines and launched new co-branded credit card relationships. His new title will be Managing Director, Strategy, where he is expected to work over the credit card division.
Although the credit card division in whole is changing, Chase reports that their new luxury product – the Chase Sapphire Reserve – is performing well. A spokesperson told Fox Business the card is renewed over 90 percent of the time at a $450 annual fee.
However, there are growing concerns about the credit card’s profitability. Chase told Fox Business they currently expect their credit card business to be “relatively flat” in the fourth quarter of 2017, with fewer credit card openings compared to the previous year. In addition, changes in the cardholder profile, who are avoiding inheriting interest charges by paying off balances monthly, are affecting overall profitability.
It is unclear what, if any, further changes could be coming for Chase. Despite news of the change, Chase’s stock went relatively unchanged at closing.