Source: https://ir.manutd.com/financial-information/annual-reports/2022.aspx Tool: SankeyMATIC

Love including the Credit Card and Savings Interest Income! Very detailed and disciplined.

I like the idea, but bit selective in which companies you show. I’d put in a note that it was select founders (based on X).

Thanks, this is awesome! I was kind of shocked seeing the water near the Panama Canal wasn't as acidic. Maybe it does have more to do with current patterns.

Interesting how it's less acidic in the middle. Wonder what it would look like with a Shipping Route Overlay.

Recommend a Waterfall or Bar chart sorted by highest to lowest.

They have to spend all that interchange in rewards and partnerships to maintain their customer base. Not to mention all the operational costs in servicing, disputes, and fraud. You can’t run a credit card business successfully on just interchange and be profitable. I don’t know a single bank where interchange outweighs interest even if their entire customer base is super prime.

The truth is… credit cards have become a bet on missed payments and overspending. For every 1 customer who genuinely needed “short-term liquidity” to cover for basic needs there’s 20 to 30 customers blowing stacks on the latest influencer’s merchandise or booking an expensive trip to live like royalty.

Assuming you mean a 1% Charge-off rate. Interchange is peanuts compared to what most banks make in fees/interest. I’ve worked at one of the largest Super Regional bank and a global bank spinning up card programs in Europe and North America and can tell you without a doubt the most profitable program is raising credit limits to increase outstanding balances.

Lot of kool-aid there. How does your Bank’s Credit Card make money? Just curious.

Nice way of saying people are stupid. You’re not wrong.

Assuming they were financially educated and pushing their personal finances to the edge, they’d most likely switch over to BNPL which charges a fraction of the cost for late payments.

Ever notice Credit Cards don’t require you to establish how you’re going to pay and put auto-pay on by default? Can tell you at a major US Credit Card Issuer the rate is LOW for auto-pay enrollment.

As long as you don’t spend proportionally to your credit limit increase you’re fine. Most banks have a credit limit increase program such that a good percentage of customers will start spending more on their card collecting the measly interchange and some will actually miss payments and go into debt - even more profitable.

Pretty sick return for most banks. They love jacking up the credit limit for the financially illiterate who keep a revolving balance so they keep paying outrageous finance charges.