The case involves SWOT, Pros and Cons of different strategies employed by Bankinter, Customer Profitability Analysis, Insights and Recommendations to improve profitability. It also includes the evaluation of the IberianWines proposal

1. Group 3 –Nataraj Pangal | Shankari G | TajanJosesph | VinithGopalakrishnan Internet Acquisition Strategy

2. Case Facts..

3. Bankinter Small Independent National Bank 282 Branches 2964 Employees 1230 Agents EURO 21.4b Assets

4. Positioning Innovative Multichannel Low-Cost Financial Services

5. Growth Started in 1965 Organic Growth Forayed into Online Banking First Multichannel Bank 37% of transactions - Internet

6. Internet Strategy Partnering - Portals Internet Branch Transform into Multichannel

7. Internet Acquisition Growth Dec 00 – 40,000 Customers Dec 01 – 120,000 Customers Formalized Customers Non-Formalized Customers

8. SWOT Analysis…

10. Internet Customer Acquisition Strategy…

11. Alliance Strategy High upfront Annual Fee

12. eCollaborator Strategy Incentives

13. eCollaborator Strategy Analysis…

14. Customer Profitability Analysis Profitability.xls Unformalized Customers - 33000

15. Increase Profitability Increase Retention of Profitable Increase Attrition of Non Profitable Decrease Ratio of Non-Profitable to Profitable 2.12 NonProfitable to Profitable Ratio - Profitable

16. Insights EURO 30 Incentive Credit Card 50% Users Low Internet Penetration - Spain

17. Recommendations Focused Targeting Banners on Sites related to Segment Give Incentive in Installments Leverage on CRM Rebates & Cross Sell Loyalty Programs

18. IberianWines.com…

19. Assumptions – Worst Case Scenario 100 Clients 67 – Affluent | 33 - Students All Students are unprofitable CF – Affluent  CF – Profitable 8700 Segment CF – Students  CF – UnProfitableeClbtr Segment Attrition Rates remain constant

20. Calculations Weighted Profitability Scenarios

21. Recommendations Minimum 24% Acquisition rate Display Banners only on Affluent Display Banners based on Number of Transactions Incentivize Customers to use Bank for Wine Transactions

22. THANK YOU