Intelica Achieves EUR 77M in Cost Reduction with Advisory

The Challenge

A leading financial institution in Central Europe, managing over 3 million cards and annual card sales exceeding EUR 10 billion, faced rising costs associated with its card portfolio. The need to reduce card fees while maintaining operational efficiency and improving business agreements with card payment networks was critical.

Intelica was engaged to provide a solution through its Agreement Negotiation service, focusing on minimizing card scheme fees by renegotiating terms with card networks to secure better pricing and long-term savings.

The Solution

Intelica’s Strategic Approach: A Two-Phase Advisory Process

1. Phase 1

   Comprehensive Card Portfolio Analysis

   6 weeks

   Intelica conducted a six-week analysis of historical data, including invoices, operating certificates, past commercial scheme agreements, and seven-year portfolio projections. The goal was to improve the commercial terms of current agreements by addressing the following:

   • Fee discounts
   • Rebates for accomplishing volume targets
   • Ratio of cash vs. value in kind incentives

   Intelica’s detailed analysis allowed for the development of an optimized negotiation strategy to reduce costs and improve financial performance.

2. Phase 2

   Advisory for Strategic Implementation

   10 Weeks

   Based on the findings, Intelica advised on the best course of action to approach card networks, guiding the institution through the final decision-making process. The strategic advisory led to substantial improvements in the agreement terms, enabling long-term cost reduction.