We carry out a business assessment and implement a control panel to increased revenues and prevent future losses. We develop a credit card profitability model by product types, including the customer’s vantage, the customer’s payment history, the percentage of active accounts, the net income per customer, or the card issued. And the segmentation is based on the use of Card products as primary, medium, passive and inactive customers. We apply key performance indicators to identify key objectives that must be prioritized to establish the optimal potential to generate incremental revenues for issuers and acquirers. The balanced scorecard is a strategic management system that focuses on profit, success, and value for issuing and acquiring organizations. Today card issuers offer a broad range of plans with different fees and rates depending on credit risk, consumer usage patterns, and the benefits of the card. It is important to track and compare key indicators of your average balances on accounts considered active, the percentage of accounts with finance charges, credit line utilization, monthly sales volume, delinquency percentages, and totally outstanding.
GLOBAL PAYMENTS will integrate a profitability model that will automate the management controls of the Cards business. The profitability model is a tool to improve the efficiency and control of the business to measure the profitability of the card products and identify, acquire, serve, retain, and expand relationships with customers.
THE KEY OBJECTIVES TO BE ACHIEVED WITH THE PROFITABILITY MODEL ARE THE FOLLOWING:
• Provide automated access to a management control panel integrating an executive summary of key business drivers.
• Profitability analysis of credit and debit card products to determine the profitability per card, the balance per account, the percentage of active accounts with balances, the accounts that transact month by month, and the credit losses per account.
• The Profitability Model is positioned as an inter-phase between the strategic processes and the operating processes, being a transformer of the information provided by other functional systems.
• GLOBAL PAYMENTS CONSULTING allied with the systems development company eKnowlogie to integrate the knowledge of the Payment Means business with the cutting-edge technology developed by this alliance. The company eKnowlogie (www.eknowlogie.com) has developed projects for Hartford Financial, Lockheed Martin, GM, Procter & Gamble, and other companies to modernize their systems.