upite waves bg.jpg

BUSINESS CASE: SOUTHERN EUROPE

Tracked value of 17.40 EUR recurrent every year per active credit card

REGION: SOUTHERN EUROPE

 

CLIENT: RETAIL BANK NO. 3 IN THE MARKET

 

MODULE: REVENUE ENHANCEMENT

 

SCOPE: CREDIT CARDS & DEBIT CARDS

ACTIVE CREDIT CARD PORTFOLIO: > 1.3 M

ACTIVE DEBIT CARD PORTFOLIO: > 4 M

PROJECT EXECUTION: 10 WEEKS

upte%20madrid%20skyline_edited.jpg

FACTSHEET RESULTS
 

  • In total 44 strategies have been presented for credit cards and 10 strategies for debit cards.

  • The tracked value per active credit card is at 17.40 EUR recurrent per year.

  • The tracked value per active debit card is at 1.41 EUR recurrent per year. 

  • First implementation was reached 5 weeks after the project end, with the first 4 strategies being rolled out. 

  • Implementation ratio to presented value is at 45%.

  • 31% of the value implemented was parametric implementation.

  • The tracked value in total is 36% over the initial impact estimations. 

+ 17.40 EUR

per year

 

tracked per active credit card

+ 1.07 EUR

per year

tracked per active debit card

ENGAGEMENT SUMMARY
 

PROJECT EXECUTION

Our client faced the significant challenge to unify multiple separate banks into one bank. We were assisting with verification of fees and interest applied, providing the best settlement methodology and fee scheme, pointing out leakages and providing revenue enhancing initiatives to the client and its card issuance (Credit & Debit Cards).

 

Despite the complexity of different systems and settlement methodologies we managed to execute the project in 10 weeks. We presented 44 credit card and 10 debit card strategies to the bank.

 

Following our main principle of presenting acceptable & implementable strategies the bank went for 24 credit card strategies and 4 Debit card strategies. 

 

In terms of acceptance ratio impact we reached acceptance for 45% of the value presented. 

Recurrent value presented vs. accepted per active credit / debit card

28.33 €

13.01 €

1.69 €

0.62 €

CC per unit

DC per unit 

Presented per unit

Accepted per unit

With 13.01 EUR accepted per active credit card and 0.62 EUR per active debit card we managed to surpass the client's expectations already. 

IMPLEMENTATION PROCESS

Parametric and low complexity in terms of IT implementation made up 52% of the value implemented and was in most cases almost immediately actionable. 

Implementation complexity by impact

31.21%

21.21%

30.80%

16.78%

Parametric

Low

Medium

High

The client did the development of the strategies internally, reaching first implementation within 6 weeks of the projects end.

We reached implementation in all income levers of the bank, with the majority coming from the fee income of the bank. This was also debited to the fact that DC don’t have any interest.

50%

40%

30%

20%

10%

0%

Value distribution by income lever of implemented impact

4.66%

37.99%

57.35%

Interest

Fees

Others

RESULTS OBTAINED

Despite the challenging situation the bank was in, UPITE succeeded in contributing significant value to the bank, surpassing the banks expectations by far.

We have reached a tracked recurring value per year of:

  • 17.40 EUR per active Credit Card 

  • 1.07 EUR per active Debit Card
     

The overall tracked impact is 36 % above original estimations. 

20 €

15 €

10 €

5 €

0 €

0.62 €

13.01 €

17.40 €

1.07 €

+33%

+72%

Estimated vs. tracked impact per unit

Estimated

Tracked

CC per unit

DC per unit

We have managed to add significant value to this client which lead to the client contracting us for two more projects, providing our services for all other retail banking products of the bank with similarly excellent results obtained in these projects.

The collaboration with the team of the bank was and is excellent up to this day, which is a key factor for achieving these results. 

UPITE Consulting Services SL

Calle del Golfo de Salonica, 27

28033 Madrid, Spain​

+34 91 345 1747 • info@upiteconsulting.es

Legal Terms

© UPITE Consulting 2020