The leading consumer banking electronic bill payment and presentment company engaged Midtown Consulting Group (MCG) to develop a services and data information strategy to drive shareholder value.
The client provides electronic bill payment and presentment and other types of electronic commerce payment services to consumers through numerous sources, including US banks, brokerages, web sites, and personal financial management software. They process the equivalent of 13% of the nation’s GDP and are the exclusive payment processor for several of the world’ s largest banks and financial institutions. They were being pressured to diversify their higher capital consuming business units and develop new revenue streams that would increase overall ROIC.
MCG worked with the client to develop a strategy to “monetize” their very large database of consumer spending habits which included: a) number of payments made/day; b) average payment size; c) average number of late payments; d) type of payment (e.g. utility, mortgage, etc.).
The consulting team utilized MCG’s “Opportunity Assessment Approach” to identify potential services strategies:
- Reviewed current state situation and identified industry trends resulting in a “short” list of opportunities
- Developed the potential “future state(s)” based on current state review, trends, and corporate objectives
- Identified gaps between desired “future state” offerings and current capabilities
- Developed the business case and ten-year implementation roadmap
Client has generated significant interest and demand with respect to macro views of its data and how predictive it is of consumer spending habits. Wall Street institutions, financial services information providers and the Federal Reserve are active sales targets.