5. Credit Card Application & Usage Process
Flow: Decomposition
Model 2 Model 1/2 Model 1/2
1. SEARCH 2. APPLY 3. APPROVAL
- Review alternatives & - Branch / Kiosk / PROCESS
identify the best fit Online - Issuing institution
Model 1 Model 1 Model 1/2
6. MODIFY PLAN 5. REDEEM POINTS 4. USE
- Opportunity to - If approved: Start
update the plan using the card
6. Step 2: Application Process
FIRST STAGE – Model 2
BMO Flex Card Interface
- User is matched with most Total Allocation Units: 1,000 Additional Cost: $0
suitable plan SPEND: EARN:
- Interface fields are
- Grocery Points: - Market research
prepopulated with default
x 1 ☐ x 2 - Receive
information - Air Miles: promotional offers
SECOND STAGE – Model 1 ☐x 1 ☐ x 2 (emails):
+ Car Rental Insurance 10/month
- Allocation units are used to + Road Side Assistance ☐20/month
customize the plan - Interest rate: POINTS STATUS:
- Units: base amount + reward 19% Grocery points: 2,000
for credit card loyalty + reward Air Miles: 24,000
for additional products with
BMO
7. Steps 3 & 4: Approval & Use
• Similar to Model 1 & 2 process
3. Approval • The applicant is either approved or rejected
• Model 1 & 2: If approved - start using the card
4. Use • Model 1: 2-weeks grace period: opportunity to
modify the plan
8. Steps 5 & 6: Redeem Points & Modify Plan
• Similar to Model 1 process
5. Redeem • Close match with the reward system
• Rewards are useful & can be redeemed quickly
• Builds on Model 1 customization
• Opportunity to modify the plan after one year
6. Modify • Customers have different needs during different
stages of life
• No need to switch to a different card
9. What are the barriers to the integrative
solution?
Set-up costs are
sustainable
BMO
No loss of
What would customers due
to complications
have to be true
for the proposed Partners can
Partners
accommodate
model to work? annual changes
Customers will
not perceive
new process as Customers
complicated
10. How to determine if the statements hold
true?
• Identify any existing interfaces that can be used
Testing the for the Flex Card
• Obtain quotes for additional development and
interface set assess development time
up • Assess cost of training employees
• Complete cost benefit analysis
• Conduct a pilot project and invite selected
Testing existing customers for trial
• Maintain feedback loop to allow customers to
complication comment on service
of process • Invite new customers to sign up for the service
and begin phasing out existing cards
11. How does Flex Card Create Stakeholder Value?
Model #1 Model #2 Proposed Solution
Branded Bank Issued Flex Card
Issuing
Institution
Customer
MasterCard
Partners
12. How does the Flex Card Add Value to BMO?
Increased • Easy to bring new features/rewards to market
• Marketing and promotion
Efficiency • One card replaces multiple cards
PARTNERS CUSTOMERS
Higher • Incentive for customers to use Flex Card
• Increased card loyalty
Profits • Revenue from new partners
