The client, a major credit card issuer, was experiencing significant balance runoff that was reducing profitability. Analytics identified that 3% of accounts were responsible for 80% of the losses. Models were built and strategies implemented to retain profitable customers, including lowering interest rates for likely payers and offering alternative products. These approaches led to a 30% drop in balances lost and 45% greater response to alternative products, maintaining overall profitability.

1. Analytics in Action
Retaining Profitable Assets
Client : A leading issuer of Consumer Credit Cards in the US
Business Situation : The Recommendation :
The Client was experiencing a significant runoff in its Card Build predictive models that identified the 3% of Customers most
receivables. Customer payment rates had been climbing up over the likely to pay-off their Card balances in the future. Furthermore, two
past 12 months leading to balance erosion. strategies were proposed to contain the balance runoff:
Moreover the balances lost were high-priced balances contributing - Lower Card pricing to accounts identified as most likely to pay-off
in a greater proportion to overall portfolio profitability. balances.
- Offer HELOC and cash-out refinance to accounts with existing
The Task : mortgage balance and identified by model (the Client also offered
- define and scope the balance erosion and its impact on mortgage-related products).
profitability
- understand internal and external factors causing the balance The Result:
erosion Recommendations were implemented in a robust test-control mode
- implement strategies to stem the erosion and bring the portfolio and results tracked.
back to its ‘normal’ state • Lower Card pricing resulted in a 30% drop in balances lost.
Although absolute profitability was lowered due to lower pricing,
The Analysis: the balances retained helped off-set this loss leading to overall
gains in profitability vs. Control.
Leveraging historical bank internal performance data, and external
credit bureau data, a sound business recommendation along with • Results from offering alternative Products showed that test cells
expected financial impact and assumptions used therein was made . had 45% greater response to these products. Although the
balances were still lost from cards, the Client was able to save the
balances on a different but internal Product. Overall absolute
The Analysis covered three areas :
profitability was maintained and was significantly better vs.
The What : It was found that only 3% of accounts were contributing Control.
to over 80% of the balance erosion. This was a significant
breakthrough as it narrowed the scope of the problem to a small set
of accounts. It also meant that appropriate remedies could be Marketelligent’s Expertise in
implemented fast without impacting the bulk of the portfolio.
Consumer Finance
The How : More detailed investigations on the 3% of accounts
showed that these Customers were shifting their balances from the • Senior Management team with extensive
Client’s Product to other competitors. Various vehicles of balance
shift were also identified: card-to-card balance transfers, Home industry experience in Consumer Finance and
Equity Lines of Credit (HELOC) and cash-out refinancing. Essentially, Retail Banking across asset- & liability-based
customers were converting their high-priced balances w/Client to Products
other lower priced products but with competing banks.
• Deep Expertise in Risk Management, Fraud
The Why : The external macroeconomic environment revealed that and Marketing Analytics
low interest rates had led to a steep drop in mortgage rates;
moreover a rise in home prices had left Customers flush with home Contact us at info@marketelligent.com for a
equity; the combination of low interest rates and substantial home
equity meant smart Customers were converting high-priced card risk-free evaluation
balances into low-priced mortgage-related balances.
www.marketelligent.com

2. Y O U R PA R T N E R F O R
D ATA A N A LY T I C S S E R V I C E S
ADVANCED ANALYTICAL SOLUTIONS
Industry Business Focus Tools and Techniques
Consumer Finance Investment Optimization SAS, SPSS, R, VBA
Credit Cards Revenue Maximization Cluster analysis
Loans and Mortgages Cost and Process Efficiencies Factor analysis
Retail Banking & Insurance Forecasting Conjoint analysis
Wealth Management Predictive Modeling Perceptual maps
Consumer Goods and Retail Risk Management Neural Networks
CPG & Retail Pricing Optimization Chaid / CART
Consumer Durables Customer Segmentation Genetic Algorithms
Manufacturing and Supply Chain Supply Chain Management Support Vector Machines
High Tech OEM’s Sentiment Analysis
Automotive
Logistics & Distribution
GLOBAL EXPERIENCE.
MANAGEMENT TEAM
PROVEN RESULTS.
Roy K. Cherian
CEO
Roy has over 20 years of rich experience in marketing, advertising and media
in organizations like Nestle India, United Breweries, FCB and Feedback
Ventures. He holds an MBA from IIM Ahmedabad.
Anunay Gupta, PhD
COO & Head of Analytics
Anunay has over 15 years of experience, with a significant portion focused
on Analytics in Consumer Finance. In his last assignment at Citigroup, he was
responsible for all Decision Management functions for the US Cards
portfolio of Citigroup, covering approx $150B in assets. Anunay holds an
MBA in Finance from NYU Stern School of Business.
Buck Chintamani
EVP, Strategic Initiatives & Business Development
Buck has extensive experience working with global clients across sectors.
He was an early employee at Infosys, a founding team member at supply-
chain software startup - Yantra, and part of the management team at RFID
sector startup - Reva. Most recently, he was the Vice-President for Service
Partner Strategy and Programs at product lifecycle management software
company, PTC. Buck has an MBA from IIM Ahmedabad.
Kakul Paul
Business Head, CPG
Kakul has over 6 years of experience within the CPG industry. She was
previously part of the Analytics practice as WNS, leading analytic initiatives
for top Fortune 50 clients globally. She has extensive experience in what
drives Consumer purchase behavior, market mix modeling, pricing &
promotion analytics, etc. Kakul has an MBA from IIM Ahmedabad.
CONTACT www.marketelligent.com
MARKETELLIGENT, INC.
80 Broad Street, 5th Floor, New York, NY 10004
1.212.837.7827 (o) 1.208.439.5551 (fax) info@marketelligent.com