The “Central Bank” series discusses the use of information and product design for the management of counterparty risk of newly acquired customers. Central Bank, a regional American bank size medium, sought to expand its customer base by increasing the number of new checking accounts. Like many banks, central view audit as an important tool for acquiring and retaining customers. However, the bank realized that the aggressive pursuit of new accounts could increase the number of overdrafts and, ultimately, the customer default. The first case, “the Central Bank: The ChexSystems (SM) QualiFile (R) making” analyzes how QualiFile a debit product marketed by ChexSystems rating can be used to control this risk.
by
Dennis Campbell,
F. Asis Martinez-Jerez,
Peter Tufano,
Emily McClintock Ekins
Source: Harvard Business School
22 pages.
Release: July 19, 2007. Prod #: 208029-PDF-ENG
Central Bank: The ChexSystems (SM) QualiFile (R) decision in the case of the solution
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