BUSINESS CASE: EASTERN EUROPE
Tracked value of 8.29 EUR recurrent every year per active credit card
REGION: EASTERN EUROPE
CLIENT: RETAIL BANK NO. 4 IN ITS MARKET
MODULE: REVENUE ENHANCEMENT
SCOPE: CREDIT CARDS
​
ACTIVE CREDIT CARD PORTFOLIO: > 250 K
​
PROJECT EXECUTION: 8 WEEKS
+ 8.29 EUR
per year​
tracked per active credit card
FACTSHEET RESULTS
-
In total 31 strategies have been presented in a time span of 8 weeks to the client.
-
The tracked value is at 8.29 EUR recurrent every year per active Credit Card.
-
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 43%.
-
40% of the value implemented was parametric implementation.
-
The tracked value in total is 17% over the initial impact estimations.
ENGAGEMENT SUMMARY
PROJECT EXECUTION
The primary focus in this Revenue Intelligence project was to verify the correct application of fees and charges and provide the bank with potential revenue enhancing strategies within their credit card products.
We were facing a very challenging market environment, with a regulator making banking activities more and more complicated within the market.
Nevertheless, we managed to deliver the project in a 9 week time frame and managed to present 31 strategies to the bank.
At the end of the decision process of all involved areas of the bank, 11 strategies have been chosen for implementation.
Our main principle is to present strategies that our clients can implement, since we only earn if we reach implementation and tracking. The acceptance ratio of 43% of the total value presented reflects the applicability of our strategies.
20 €
15 €
10 €
5 €
0 €
Recurrent value presented vs. accepted per active credit card (in EUR)
16.47
7.06
Presented value per unit
Accepted value per unit
Despite the very difficult regulatory situation, we managed to significantly surpass the client's expectations, with reaching acceptance of 7.06 EUR per active card. The basis for these results was the excellent relationship & teamwork between the client and us.
IMPLEMENTATION PROCESS
As you will see below 40% of our impact implemented was immediately actionable for the client, having no IT constraints and therefore being quick wins.
Implementation complexity by value
40%
19%
28%
12%
Parameter
Low
Medium
High
First implementation was reached five weeks after the project end, full implementation within 12 months of project end.
Looking at the impact distribution of the value implemented, the implemented value was well distributed among the 3 main levers, showing the diversity of our strategies and our capability to add actionable value over all income levers.
Value distribution by income lever of implemented impact
27%
31%
41%
Fees
Interest
Others
RESULTS OBTAINED
Despite the challenging regulatory environment, UPITE succeeded in contributing significant value to our client, surpassing the banks expectations by far.
We have reached a tracked recurring value per year of:
-
8.29 EUR per active Credit Card
thereby surpassing the expectations of our client significantly.
The overall tracked impact is 17 % above original estimations.
10 €
7,5 €
5 €
2,5 €
0 €
8.29 €
+17%
7.06 €
Value distribution by income lever of implemented impact
Estimated impact
Tracked impact
We have managed to add significant value to the credit card portfolio of the bank, without generating a negative customer reaction.
The collaboration with the team of the bank was excellent and was a key factor for achieving these results.
Via this first “pilot test” in this substantial banking group we have entered other markets of theirs in Eastern Europe, proving our methodology applies in any competitive or regulatory environment.