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The card payment market is one of the most complex and fast-changing environments in the business world. It is all the more important, therefore, that the financial dynamics of this industry are well understood by any organisation already in, or planning on entering this market.
The Insight team has a wealth of experience in facilitating the understanding of the payment card market to both newcomers and existing issuers and acquirers. Here are some of the ways we can put this experience at your disposal.
Insight Profitability Models
These are packaged solutions which we have developed and refined over many years to enable issuers to examine the various inter-relationships between card profitability drivers. The user will gain an understanding of key profitability dynamics such as interchange, fraud, risk management, application policy, marketing and how these impact the bottom line of credit, debit, prepaid portfolios. These can be used as learning tools or for strategic planning purposes to evaluate potential business impacts. We have a number of different types of models which come with user documentation and an optional support package. These include:
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Insight Prepaid Model |
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Insight SEPA Migration Model |
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Insight Credit Card Model |
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Insight Co-branding Model |
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Insight Payment Scheme Evaluation Model |
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Insight Interchange Model |
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Insight Scheme Fee Model |
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Insight Storecard Conversion Model |
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Insight Card Business Optimisation Model |
Bespoke Financial Model Solutions
When a standard solution falls short of requirements, we can develop bespoke solutions (either using our core models as the basis with some refinements, or a completely new model build, depending on the level of customisation required).
Bespoke solutions may involve complex multi-product comparision models, business simulation/training tools, business cases, new product evaluation, optimisation, business change evaluation tools, new market entry assessment tools, private label conversion analysis models, etc.
Business Case Validation
Our consultants are experienced in analyzing and validating business cases. Time spent validating these assumptions can prove very valuable to ensure overall programme profitability and a fresh pair eyes can sometimes uncover anomolies that might otherwise have been missed, but have dramatic consequences on the bottom line.
We use financial business case methodology to build validation tools and analyse client assumptions in order to provide an independent appraisal of decision impacts.
Examples of our work in this area:
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Evaluation of proposals from Visa and MasterCard as part of a global issuing initiative by a major monoline issuer. |
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Assessment of business case, interchange income and scheme fees for a private label conversion programme. |
Pricing
We can provide advice on best practice and can validate pricing strategies within the context of the changing market costs and model the impact of pricing changes on the portfolio.
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