BCG - The Boston Consulting Group

Situation

The client is one of the largest commercial banks in China. It has a sizable and comprehensive credit card portfolio built over many years. However, complexity and a lack of overall clarity hindered the growth of this business, as the bank offered many card types, product features, and brands. The bank engaged BCG to assist in redefining its credit card portfolio, and to realign the various brands used.

Approach

The BCG team started by analyzing projected credit card market demand and consumer trends in China. We then conducted a thorough diagnostic study of the client’s portfolio, which included analyzing features of existing credit cards, mapping them against respective target segments, identifying overlaps and “white space,” analyzing economics across different card types, and benchmarking card features and portfolio structure against competitors’ offerings. In addition, the team diagnosed the existing branding approach and developed multiple improvement options. By working closely with the client, we uncovered additional improvement opportunities in sales and distribution which were not apparent at the outset. Based on our findings, we developed a four-step approach to advance the client’s credit card business: redefine product portfolio structure to improve focus on target segments and reduce overlaps; realign branding with product positioning; expand product offerings to cover selected high priority white space; and improve sales and distribution effectiveness.

Impact and value created

BCG helped to provide clarity and solution on complex issues that had been a drag on the performance of the bank's credit card business for many years. Senior executives of the bank decided to implement our recommended improvement program immediately.

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