Start

Starting point: The card services group of a Fortune 10 bank faced complex business and technology challenges brought on by three sets of newly imposed government regulations – UDAP, Reg. Z, and CCA. Not only did the client have to ensure compliance, it also had to recapture a portion of the anticipated $1.5 billion in lost revenue – and it had to do it all in just nine months.

Why CG?

Why CG?: The client turned to CG for help because of our:

  • Intimate knowledge of the bank’s card services business and unique technologies
  • Proven track record of delivering solutions in rapid timeframes
  • Ability to leverage our management consulting to help the bank recoup lost revenue while complying with regulations
Roadmap

The CG Roadmap: Strong program management was key to the success of this program. CG worked multiple fronts simultaneously: managing compliance requirements, executing system enhancements, and determining and delivering on revenue loss recoupment strategies. By running these efforts in parallel, we were able to meet all of the client’s business and technology goals within the tight timeframe.

Milestone

Memorable Milestone: CG helped the bank meet its compliance deadlines months in advance, giving it plenty of time to conduct system tests and ensure it had met all compliance requirements. With compliance issues buttoned-up early, the team was able to focus on critical revenue recapture efforts.

Success

Success: Working with CG, the bank’s card services group met its business and technology goals in rapid timeframes. Our client:

  • Recouped its targeted annual revenues from the $1.5 billion-plus that would have been lost without system enhancements
  • Reached compliance months before the deadline, giving it time to thoroughly test systems and avoid penalties

Credit Card Compliance

Fortune 10 Bank

CG helps Fortune 10 bank comply with new credit card industry regulations and recoup lost revenue

Business Challenge: How to make the best of costly new government regulations

In the spring of 2009, newly imposed UDAP and Regulation Z government regulations posed new and formidable business and technology challenges for the card services group of CG’s Fortune 10 banking client. The system changes required to support the new regulations were massive and costly in scope. In addition, the regulations and their impact on credit card business practices were going to cost the client as much as $1.5 billion or more in annual revenue. Further complicating the situation, was the spring 2010 passage of the Credit Card Act (CCA), which imposed additional regulations and even more aggressive timelines. The bank faced the double challenge of ensuring compliance for three sets of regulations and recapturing a portion of the anticipated lost revenue. And it now had only nine months is which to do both.

The CG Solution: Focus, experience, and an innovative management approach puts goals within reach

The client chose CG because of its intimate knowledge of the client’s card services business, unique technologies, and proven track record of delivering strategic solutions in rapid timeframes. CG had previously helped the bank bring new revenue-generating credit card programs to market, had a strong team of card industry experts, and could readily tap this experience for the client’s time-sensitive, high-stakes project.

CG leveraged its management consulting expertise to help the bank address this challenge from a more strategic revenue recapture perspective rather than from the compliance angle alone. CG then worked with the bank to clarify, broaden, and refine the issues it faced so everyone could better understand the business impact and then prioritize the work to be done.

CG’s delivery experts helped identify and implement opportunities to minimize revenue losses through technology enhancements to various areas of their card services portfolio. These enhancements advanced system compliance efforts while providing new ways to recoup expected revenue losses.

Program management also played a key role in the success of this endeavor. CG used a multi-generational approach that not only managed compliance requirements while executing on system enhancements, but also determined and delivered on revenue loss recoupment strategies. By running all of these efforts simultaneously – and quickly and effectively accommodating the new requirements and deadlines imposed by added CCA regulations – CG was able to help the client meet all of its compliance-related business and technology goals in the pressing nine-month timeframe.

Results: Compliance reached; revenue restored

CG’s approach for complying with CCA, UDAP, and Regulation Z regulations ensured the least business impact and the greatest revenue return for the client. Working with CG, the bank’s card services group met the compliance requirements on budget and months in advance of the deadline and has been successful in reaching its revenue recoupment goals to date. The new compliance solution positions the bank to continue to build out new revenue generation opportunities within the evolving regulatory landscape.

        Success Metrics:

  • The bank recouped its targeted annual revenues from the $1.5 billion-plus that would have otherwise been lost without the system enhancements. CG and the client continue to work together to pursue additional revenue recapture goals in light of existing and new government regulations.
  • The multi-generational program management approach ensured on-time, on-budget compliance while simultaneously supporting revenue recapture opportunities.
  • The bank was in compliance months before the deadline, which allowed the client time to test the new regulations, ensure it had met all compliance requirements, and avoid penalties. The early delivery of the compliance project also enabled the client to focus on critical revenue recapture efforts.