Old Jun 25, 19, 7:09 am
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Originally Posted by jediwho View Post
Most of us would agree that Citi won the Costco deal by being very aggressive. But within months after winning the Costco deal, Citi devalued the benefits of Citi Prestige and yesterday, they went and slashed benefits across the board. Seems like the ROE (if there is any) on the Costco deal is very low and Citi Card division is pressed against the wall to meet their numbers.

On the other hand, Amex after losing Costco (and partly because of competition from Chase) has improved its benefits and also competitive positioning. So, did Citi really mess up in being too aggressive and Amex is having the last laugh??
Didn't Visa win the Costco deal, and then the bank assigned to carry out the lending was Citi?

Also, AMEX lacks many benefits the Citi cards used to have. I'm not sure how AMEX has improved their benefits... They've simply just offered new cards and increased the AF on current ones.
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