This case presents a scenario in which a large financial institution has obtained a sizable portfolio of new customers of traveling (corporate expense) cards. The bank must decide on the best combination of clients to keep in order to achieve their goals of preserving reputation, entering a brand new product market successfully and maximizing profitability. The perfect mix depends on a number of different factors, including annual account spend amount, complexity of serving the account, the number of cards in every single account, account risk and account retention amount. The variety and amount of clients selected will change the future profitability and long term strategy of the bank. The bank is restricted by attempting to accomplish a three-year payback, and facing prices that can change significantly (and which aren't in the bank's control).
PUBLICATION DATE: May 25, 2011 PRODUCT #: W11086-HCB-ENG
This is just an excerpt. This case is about TECHNOLOGY & OPERATIONS
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