We conduct a thorough business evaluation and implement a control panel to boost revenue and mitigate future losses. To achieve this, we develop a credit card profitability model that considers various factors such as the customer’s creditworthiness, payment history, active account percentage, net income per customer, and card type. Segmentation is performed based on the customer’s primary use of card products, categorizing them as primary, medium, passive, or inactive customers. Key performance indicators (KPIs) are utilized to identify crucial objectives that should be prioritized in order to maximize revenue generation for both issuers and acquirers. The balanced scorecard, a strategic management system, is employed to emphasize profitability, success, and value for issuing and acquiring organizations. Nowadays, card issuers offer a wide range of plans with varying fees, rates, and benefits based on credit risk, consumer spending patterns, and card features. It is vital to monitor and compare key indicators such as average balances on active accounts, percentage of accounts with finance charges, credit line utilization, monthly sales volume, delinquency rates, and total outstanding balances.
A profitability model that automates the management controls of the Cards company will be integrated by GLOBAL PAYMENTS. The profitability model is a technique used to measure the profitability of card goods, find, acquire, serve, retain, and grow client relationships, as well as increase corporate efficiency and management.
