J P MORGAN –

CASE STUDY
GAURAV CHAUDHARY
PORTFOLIO REVIEW
• 93% customers have a Blue Card, 5% have silver, ~2% have premium
products.
• There’s a near-even split between Male & Female gender.
• The portfolio is concentrated in the 30-49 age group with an average
age of 46.3 years.
• Portfolio is relatively new with an average customer tenure of 3 years.
• Portfolio has a 16% attrition rate overall.
KEY SEGMENTS - I
• Disengaged Customers – Customers with <50 transactions are attriting
at a faster rate as compared to the rest. The same can be witnessed in
the form of total spend wherein there is no attrition among customers
with spend > 10,000.

• Number of relationships – The attrition is higher among customers with

1 or 2 relationships. This might be either because the product isn’t suited
to their needs or because they are not educated/incentivized to use the
product.
KEY SEGMENTS - II
• Expectations mismatch – Customers with Utilization <10% or >80%
are attriting at an above average rate. The drivers are two-fold:
• Customers with higher Utilization are attriting because they’re looking for a
higher limit which isn’t being provided to them. This would want an
investigation from a risk perspective.
• Customers with lower Utilization are attriting because they do not see any
value in the product and hence are not utilizing the given product. These
customers should be encouraged to spend more through various offers.
RECOMMENDATIONS
• Better risk management for high utilization customers supported to
proactive limit increase offers wherein the customer retains the limit
as long as that’s being utilized
• More merchant as well as discount offers /EMI options for customers
who are transacting less both in volume and amount terms
• Better engagement through frequent communications to the
customers highlighting the benefits that we provide vis-à-vis the
competitors