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Bundling a real product with a financial institution is a time tested strategy. Airlines with their credit cards are basically banks that happen to fly planes.
by bobthepanda 11mo ago
Bundling a real product with a financial institution is a time tested strategy.
Airlines with their credit cards are basically banks that happen to fly planes. Starbucks' mobile app is a bank that happens to sell coffee. Auto companies have long had financing arms; if anything, providing insurance on top of a lease is the natural extension of that.
- SideburnsOfDoom 11mo ago> Auto companies have long had financing arms I have in fact heard it said that VW group is a financing company with a automobile arm. From some points of view, that seems correct.
- ghaff 10mo agoAuto companies, yes. As I understand it, airline credit cards are mostly just co-branded cards with existing banks like Chase.
- bobthepanda 10mo agoFrequent flyer programs are basically banks if you consider miles/points are currency.
- ghaff 10mo agoThat's different from the credit cards themselves--given the points degrade in value. (And which I should really start to use more.)