Our client is a new national retail bank with a full range of banking products and services, including credit cards, savings and loans, mortgages, travel money, and insurance. They are a modern banking organisation utilising today’s technology to deliver premium service and products to their customers.
Our client required a pricing and profitability model to allow them to assess the expected financial returns of new credit card offers, given the performance of prior propositions:
The development of the tool was clearly split between the creation and maintenance of the curves, the logic for development of the credit cards, and the development of the marketing user interface. To assess the effectiveness of the customer behaviour forecasts using the curve development tool there was periodic testing of the curves by comparing campaign behaviours to updated actuals and making adjustments to forecasts as necessary.
The credit cards pricing and profitability model became a critical tool for a relatively new credit card provider. As a combination of powerful behavioural forecasting and a marketing front-end, the model became a one-stop shop for credits cards forecasting, blending sophistication and user-friendliness.
The model became a central point of focus between finance, analytics and the credit cards team, around which a process was built to manage monthly workflow. This provided focus and efficiency improvements above and beyond the power of the tool itself.