Credit Card is one of the most sought after payment products not just in banking

industry but also being launched by fintechs and new age start-ups. It is a highly
transactional product and customer expects superior UI/UX and very high levels of
engagement from the banking partner upon card issuance. Every bank has different
channels of sourcing a credit card. Traditionally there is a physical channel wherein
bank executives reach out to select customers of the bank and sell a card.
Given the increase in adoption of digital banking services, digital onboarding is
emerging as a new channel to acquire credit card customers. Digital lending helps
acquire customers through mobile app without any manual intervention & this is
picking up as a channel to acquire new customers.

Decisioning: It filter makes customer contact point very important as credit card is
only issued to people with creditworthiness**. Any digital acquisition journey has these
elements as a part of the onboarding and customer goes through banks decision
making rules before being approved for a credit card.

The journey has following 3 variables:

Customer Cohort: point of customer contact defines type of people you are reaching
out to and hence the chances of application getting accepted. Cards are sourced at
airports, malls, petrol pump etc., by agents and digitally through social media, mails
messages etc.
Rewards/Cashback: Customer gets rewards or cashback either on successful
decisioning or card activation or both. They are rewarded in gift coupons, credit card
reward point

Channel Cost: Cost of posting ad on Facebook or mall charges and employee cost

Digital sales of credit card

Unlike conventional sales of credit card where a bank agent fills up all form and does
all the verifications of customer and submits the physical form, customer goes through
Do It Yourself journey where he fills up all forms on webpage or app and all the
verifications are done at the backend digitally through various government and third-
party APIs and customer submits the form digitally. Details are collected through
Aadhaar, PAN, salary slips etc.
So typically, customer is exposed to an online journey through Facebook, WhatsApp
message etc., thanks to QR technology, URLs can be opened on mobile phone too
which he clicks to land on webpage where he provides all the required details and
submits the application.

Problem Statement
Using the 3 variables of product journey, devise a ‘Go to Market Strategy’ for digital
sales of credit card where customer applies online and completes the journey without
any manual intervention.
In your proposal, mention why would a customer apply digitally vs a physical channel,
and what would make him switch from a physical channel to do-it-yourself digital on
boarding journey. You need to forecast the customer acquisitions number Y-O-Y to
build a 5 year acquisition plan. Provide rationale and innovative measures to reach at
the particular acquisition nos.
You are free to make intelligent assumptions wherever required.

**Creditworthiness is how a lender determines that you will default on your debt
obligations, or how worthy you are to receive new credit. Your creditworthiness is what
creditors look at before they approve any new credit to you.
Creditworthiness is determined by several factors including your repayment history
and credit score. Some lending institutions also consider available assets and the
number of liabilities you have when they determine the probability of default.
Ref: Investopedia