Our in-depth analysis helped this major card issuer identify gaps in their portfolio performance, and subsequently implement strategies relating to pricing, fees, interest calculations and product structure.
The Business Challenge
Top 15 North American credit card provider sought to improve revenue performance on a per account basis and optimize product and balance growth. The client also asked Profit Insight to focus on higher value strategies that would be relatively easy to implement.
How Profit Insight Helped
Conducted in-depth analysis of portfolio and account characteristics to isolate and quantify tactical opportunities. Identified opportunities in pricing, fees, interest calculations and product structure.
Engagement Results
Identified $50 million in recommendations related to product pricing, benefit structures and operational redundancies.
Client ultimately implemented $40 million worth of strategies over an 18-month period.
Insights
- Issuer asked Profit Insight to identify gaps in their portfolio performance, with a focus on outcomes with larger valuations, relatively easy to implement, minimal customer impact and alignment with market practices.
- Profit Insight leveraged their in-depth knowledge of consumer lending products to conduct a comprehensive analysis focusing on specific levers driving credit card performance. Client provided anonymized data to support our engagement work. Strategies were validated and vetted over a relatively short 10-week period with minimal distraction to the client.
- The value and creativity of strategies presented to client far exceeded their The client selected $28 million for their first round of implementation and leveraged the knowledge of Profit Insight to ensure smooth execution.
- As a result, Profit Insight participates in on-going discussions with the client’s line of business, providing recommendations on various balance growth and operational enhancements for consideration.
