This extremely high performing bank was facing growing pressure by regulators to ensure credit card products were priced and managed equitably for the customer.
Top 50 Asian bank was faced with growing pressure from regulators to ensure products were priced and managed equitably for the customer.
The client sought earnings enhancement solutions to improve credit card performance, including ideas to optimize fee and interest income, combined with specific expense reduction opportunities but with no negative impact to account holders due to reputation in market.
Client requested assistance in reviewing current product set and reward programs to identify areas of improvement in a saturated market with low cardholder loyalty to any financial institution.
Profit Insight worked with the bank’s legal and compliance teams to review adherence to local regulations, including presenting two new concepts to the regulator which were subsequently accepted.
Using Profit Insight’s PI3 analytics platform, the engagement team identified > 40 ideas and provided the client with new account level P&L and statistical information.
The analysis provided profitability insight enabling the client to reduce product set from nine reward programs to three.
Identified annual benefit value of over PHP900m; PHP600m in incremental earnings was realized per year as a result of 11 new strategies implemented over three-year period.