Running Head: NEXTCARD, INC. 1
NEXTCARD, INC
MARIE L. GUINYARD
DR. VAN NGUYEN
ACC 562
ADVANCED AUDITING
APRIL 22, 2012
Running Head: NEXTCARD, INC. 2
NextCard, Inc.
Introduction
NextCard received accolades from the marketing and financial communities. The company
won multiple awards for their marketing practices and branding campaigns, as well as their
ability to process applications with patented 30 second approval rating system. As a result of
online direct marketing efforts and co-branding initiatives, NextCard increased the number of
consumer accounts from 40,000 in 1998 to 708,000 accounts in 2000. In this paper, we have
identified the main contributor to the demise of the company as NextCard’s failure to identify
that the web-based marketing programs employed by the company targeted lower credit quality
consumers that defaulted on their accounts and did not implement effective corrective measures.
