Case Studies

Large credit card issuer in the Asian market expecting a financial downturn due to market changes

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The PROFIT INSIGHT team identified over 30 earnings enhancement solutions with a value of NT$ 1 billion.

The Business Challenge

A large credit card issuer in the Asian market was tasked with reducing operating costs and creating greater efficiency to better leverage capital as new regulations were emerging. The bank operated in a very sophisticated and mature market, with unique product and merchant alignment. The client was anticipating market changes and was seeking ways to be better positioned financially and operationally to mitigate any revenue impact. Client was seeking both revenue and cost/expense reduction opportunities within their credit card division. The engagement also included a comprehensive review of the product life cycle to optimize acquisition, customer on-boarding, existing account marketing and customer support. The client needed to improve financial results from operations but not at the expense of customers, thus requiring all recommendations to have minimal customer impact.

How Profit Insight Helped

Profit Insight completed a product benchmark comparison against similar portfolios both within market and globally. The portfolios were also analyzed with the overall customer experience top-of-mind and required a thorough review of business practices throughout the consumer life cycle to isolate inefficiencies and expense gaps.

Engagement Results

Through an in-depth operational review completed both on-site and remotely, Profit Insight identified >30 revenue enhancing ideas with a value of NT$1 billon. Additionally, Profit Insight presented >20 tactical strategies representing expense reduction of almost NT$150 million.

Insights 

  • Profit Insight sought to quickly identify disruptions in the workflows and proposed actionable solutions to streamline, reduce manual processes and reduce unnecessary operational expense.
  • Key activities within new account opening and on-boarding cardholders were optimized which enabled the client to take advantage of new regulatory requirements and cut expense.
  • Profit Insight proposed solutions generating improvements in servicing models, reducing customer attrition and creating efficient workflows directly benefiting the customer.

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