- Key Results
- USD 460Kannual savings
- Service
- Scheme Fees Analytics
- Jurisdiction
- Latin America
The Challenge
A global top 25 banking group with approximately 13 million cards and annual POS sales of USD 37 billion was facing growing costs from Visa and Mastercard fees. These rising costs threatened profitability across their Latin American subsidiaries, including operations in Chile.
They needed an effective solution to optimize these fees without disrupting their card services. That’s where Intelica's expertise in Scheme Fees Analytics came into play.
The Solution
Intelica’s Proven Two-Phase Approach
Phase 1
Comprehensive Fee Review
4 Weeks
Intelica conducted an exhaustive review of Visa and Mastercard invoices, identifying seven critical fees with the highest potential for cost savings. The Scheme Fees Analytics was customized to address each subsidiary's unique challenges, starting with their Chilean operations.
Phase 2
Systematic Implementation
6 Months
Intelica's team developed a step-by-step cost-saving strategy and categorized the initiatives based on implementation complexity. The easiest savings were targeted first, with 100% of these captured within the first 3 months, followed by more complex fee reductions over the remaining 6 months.
Our targeted Scheme Fees Analytics resulted in a cost-saving initiative that saved USD 460K in annual fees across their South American subsidiary, increasing its profit margin by 2.5 percentage points. Additionally, USD 120K in annual savings was realized within the first 3 months.
The proactive strategy ensured that the client would continue to identify further cost-saving opportunities, enabling them to maintain profitability without disrupting their day-to-day operations.
Key Outcomes
- USD 460KIncremental profitability
- 120KSavings realized within 3 months
- 2.5%Incremental margin
