BUSINESS CASE: LATIN AMERICA
Tracked value of 10.60 USD recurrent every year per active credit card
REGION: LATIN AMERICA
CLIENT: NO.2 BANK IN ITS MARKET
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MODULE: REVENUE ENHANCEMENT
SCOPE: CREDIT CARDS
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ACTIVE CREDIT CARD PORTFOLIO: > 1.4 M
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PROJECT EXECUTION: 8 WEEKS
+ 10.60 USD
per year​
tracked per active credit card
FACTSHEET RESULTS
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In total 19 strategies have been presented.
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The tracked value is at 10.60 USD recurrent every year per active Credit Card.
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Implementation ratio to presented value is at 61%.
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The tracked value in total is 29% over the initial impact estimations.
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Our implemented strategies added 18% to the income per active Credit Card for the bank
ENGAGEMENT SUMMARY
PROJECT EXECUTION
The project was executed on the client’s premises over a period of 8 weeks. UPITE consulting presented 19 strategies aimed at increasing the profitability of the bank's credit card portfolio.
These strategies were developed with limited time dedication of the bank´s management team and with little effect on the day to day tasks of the banks staff. All 19 strategies were discussed with the bank’s main areas (Risk, IT, Legal, etc.) and were adapted to the client’s feedback and needs.
After the approval process, 4 strategies were accepted for implementation, meaning that the project reached an acceptance ratio of 61% over the total value presented.
Recurrent annual value presented vs. accepted per active unit (in USD)
20 USD
15 USD
10 USD
5 USD
0 USD
17.49
10.60
Presented value per unit
Accepted value per unit
The value presented as well as the value of strategies finally accepted exceeded the banks expectations and our pre-project potential assessment significantly.
IMPLEMENTATION PROCESS
All accepted strategies were analyzed by the banks IT department and were prioritized for implementation based on the development complexity and the impact potential.
100%
75%
50%
25%
0%
Implementation complexity by impact
9%
82%
0%
9%
Parameter
Low
Medium
High
As you can see above 91% of the value implemented had a parametric or low complexity of development, ensuring quick results for the bank.
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Over 80% of the incremental value generated by these initiatives came from an increase in the banks interest income with changes that were completely unnoticed by the customers of the bank:
Value distribution by income lever of accepted strategies
12.7%
18%
82%
Fees
Interest
Others
RESULTS OBTAINED
The project was highly successful in increasing the profitability of the bank's credit card products with no impact on customer satisfaction. UPITE managed to create an excellent working relationship throughout all management levels of the bank, ensuring an excellent environment for the achievement of quick decision process and fast delivery of results.
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The project reached a tracked recurring impact per year of 10.60 USD per active Credit Card surpassing the banks expectations and our original proposal.
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The original impact estimations proved to be conservative as the figures tracked by the bank ended up being 29% higher than the estimated impact.
Segment income per card
75 USD
50 USD
25 USD
0 USD
70.60 USD
+18%
60 USD
Before UPITE
After UPITE
UPITE's impact to the bank's profitability was significant. The implemented strategies increased the annual active credit card income by 18%.
The commitment of the banks top management was a key factor for the success of this project. UPITE Consulting continues to track the results of this engagement and to monitor the client's profitability.