A leading credit card issuer came to Corios because they were struggling with numerous issues that were limiting their overall profitability.
Our client seeks profitable growth by identifying the ideal credit card product for each segment of their target market. They execute over 50 new credit offers each month, and were struggling to create efficient and accurate cash flow forecasting models. Our client was limited by the immobility and potential for human error that are inherent with complex spreadsheet models.
Corios leveraged our proprietary Forte solution to help the credit issuer identify their most profitable credit offer and customer pairings.
Forte creates a model for profitability that forecasts cash flow and risk based on scenarios that vary by product, customer strategy, and future economic conditions.
With Forte, our client was able to design and run varying cash flow forecasts in a matter of minutes, evaluate the sensitivity of profit to economic stressors, and build the optimal offer design to maximize risk-weighted margin growth.
Incremental net income estimates range from $10 to $50 growth per cardholder for selected prospect pools in the first two years of the customer lifecycle. Our client is now capable of identifying the top 10 card offers for each pool of acquisition prospects, empowering executives to make product design decisions for profitable growth.