Scenario Planning: A Data-Driven Approach to Accelerating Commercial Card Programs Post - Recession

BY HUGH THOMAS AND AL DIAMANT, SENIOR MANAGING CONSULTANTS, MASTERCARD ADVISORS COMMERCIAL PAYMENTS PRACTICE

Article Summary:

• Recession-related pressures to card usage caused 2009 to be the first year since the inception of the product to see a reduction in private sector spending
• Card spend volumes are unlikely to recover as quickly as they declined
• Some industries will recover faster than others, portfolio mix will be key to issuer portfolio growth
• By understanding the implications of client industry mix, issuers can take creative measures to accelerate volume and revenue recovery
• By taking a data-driven approach, issuers can focus 2010 sales and account management efforts on protecting profitable volume and accelerating program recovery