Wells Fargo is launching a new rewards credit card as part of CEO Charlie Scharf’s plan to revamp the megabank’s historically sluggish card portfolio.
The Autograph card, which does not charge an annual fee, will give cardholders triple points in categories such as restaurants, travel, gas stations, transit, streaming services and phone plans.
The offering is the latest in a suite of consumer cards that Wells Fargo
The newest card is another step in Wells Fargo’s “journey” to increase its share of the U.S. credit card market, said Krista Phillips, a marketing executive at the bank. The fourth-largest U.S. bank by assets has historically lagged competitors such as JPMorgan Chase and American Express in consumer credit cards.
“We are seeing tremendous growth, and we feel really good about our position relative to our competitors,” Phillips said in an interview, though the bank declined to share recent credit card growth figures during a quiet period ahead of its quarterly earnings release.
During the first quarter of 2022, the bank’s consumer division opened 484,000 new credit card accounts, up from 266,000 in the same period a year earlier. New figures will be available when the bank releases its earnings results on July 15.
At a conference this month, Wells Fargo Chief Financial Officer Mike Santomassimo said the bank is seeing “good traction” for its new card products compared with competitors that have more established card offerings.
He also said the bank has been pleased with the “quality” of borrowers who have applied and are getting approved, with creditworthiness metrics that are better than what the bank had modeled.
The Autograph card is already available in some markets but will launch nationwide in mid-July. Wells said it plans to introduce more cards that offer rich rewards.
In addition to triple points in several categories, cardholders will get single points on other purchases, and there are no limitations on how many rewards customers can earn. New cardholders can get 30,000 bonus points if they spend at least $1,500 within the first three months. Customers can redeem points on the bank’s rewards platform, with each point worth 1 cent.
The cards will have a 0% introductory annual percentage rate for the first year, and cardholders will then pay variable APRs that start at 16.49%, 21.49% or 26.49%.
Scharf, who became Wells Fargo’s CEO in 2019, said last year the $1.9 trillion-asset bank has historically been “under-penetrated” in the credit card market. Early in his tenure, Scharf hired former JPMorgan Chase executive Ray Fischer to lead Wells Fargo’s cards, retail and merchant services division.
The consumer credit card market has gotten
The second of three credit cards announced in June, Reflect rewards consumers who don't miss payments by extending the 18-month promotional period for its 0% annual percentage rate to 21 months.
One notable entrant is Capital One Financial’s VentureX card, which has a $395 annual fee and looks to compete with premium offerings from American Express and Chase.
Asked whether Wells Fargo is considering launching similar products, Phillips said the bank is “definitely taking a look” at the sector and noted the Autograph card’s focus on travel-related and dining rewards.
“Now more than ever, consumers want a card that lets them go their own way, from everyday adventures to annual escapes,” Phillips said in the company’s press release.
All three of the credit cards that Wells Fargo has launched over the past year are part of the Visa payments network.
