Case Study #4
While not of everyone, for thousands of institutions delivering credit cards under their own names under a third-party ‘agent’ relationship has well-matched their resources and strategy. For this particular client, drawing on experience with hundreds of such evaluations and strong relationships across the partner community, TRK Advisors develop a deep financial, strategic and risk analysis comparing the value of each option. This information allowed the institution to understand all impacts of either retaining or partnering, including income, balance sheet and capital, compliance, marketing, credit and operational risks and cardholder experience.
After receiving the analysis, this particular issuer decided to retain their card business and commit to making the changes necessary to make it successful without an external partner. They had a clear understanding of why they made this decision and, more importantly, all levels of management aligned on the commitments that were necessary to create a successful, internal program. Rather than languish, the card program received new focus to move forward.