CREDIT CARD LAUNCH

What the client said.

“This programme had many challenges and complexities – partnership, innovation, new distribution brand and market, contractual deadline and number of suppliers. However, with Pinnacle’s support we succeeded in launching a new business to broaden our reach and exploit our strengths in the Cards Business. I would be delighted to work with Pinnacle again and can highly recommend them”

- Kevin Murphy, Head of Cards Business, Bank of Ireland

New Credit Card Business Launch: Bank of Ireland Joint Venture with major UK Distribution Network

Background
The joint venture company between Bank of Ireland and a major UK Retail Distribution Network, placed a tender for the launch, management and operations of a Credit Card which Bank of Ireland Retail Financial Services Ireland (RFSI) were awarded against keen competition from the UK Credit Card market leaders. Bank of Ireland sought to exploit their successful credit card expertise and management to expand the Credit Card business and customer base, utilising the sizable distribution network and existing strong brand.

The Team
The Tender Response team was in operation for two months only and consisted of experts, covering all discipline from the Cards Business. After RFSI were awarded exclusive contract negotiations, a multi-disciplined programme team was established to manage the conclusion of the contract, delivery of a product proposition, regulatory approval and the set-up of a full service Operations across two jurisdictions to manage customers via the phone, web and branch network and to liaise with the retail partner. The team consisted of Bank and external staff with expertise in credit card products, credit risk, operational management, contact centre, finance, process design, legal, compliance, IT, supplier management and project management.

Pinnacle Role
Bank of Ireland selected a Pinnacle Client Manager to lead the Programme both for the Tender Response and the launch of the new business. She was supported by one other Pinnacle Project Manager, who held a key project role during the programme.

The Work
Major elements of the programme included:

Building a 5 year Business Case, including the income and cost model and achieving Executive approval to proceed with a formal tender response.

Developing the response to the tender, including the commercial arrangements, followed by the formal conclusion of a tri-partite contract.

Managing the product design process to identify a product with a unique proposition to launch in a crowded market.

Managing the selection and due diligence process to engage an out-sourcing partner to manage the New Business process.

Engaging with individual business units and suppliers to prepare and execute plans to develop and build their systems, processes and procedures and to ensure Regulatory Approval.

Navigating the UK compliance agenda, itself undergoing change, with the introduction of new Consumer Credit Act legislation.

Creating the new management structure to oversee the new business line and to establish the governance for managing the overall Product Proposition jointly with the retail partner.

Managing a soft launch phase of 3 weeks followed by an immediate roll-out nationwide and the launch of the phone and web channel.

The Results
The following results were achieved:

The product launched in Autumn 2005, to significant press comment on the product innovation and two industry awards, including one for technology.

Three thousand applications were received on the first full day of national rollout.

The first 100,000 credit cards were issued to new customers prior to the first anniversary of launch.

The programme delivered within budget and to the agreed launch date.

The product has been very quickly established as a substantial portfolio within the overall credit card base issued by Bank of Ireland and the Bank has been able to demonstrate its partnership capability particularly in dealing with high application volumes.