How to Organize a Credit Card Company

by John Galt

Overview

According to the BCS Alliance, the credit card industry is one of the most profitable lines of business in the United States. Not all credit card companies are corporate monoliths or divisions of large multinational banks. Many are smaller entities acting as credit partners to retail stores. Critical components of a credit card company include divisions responsible for marketing, risk management, customer service, recovery and regulatory compliance.
Instructions

Step 1

Form a division responsible for handling all marketing efforts for the credit card company. Charge this division with responsibility for increasing outstanding loan balances as well as increasing the credit card company's brand awareness.
Step 2

Assign to the risk management division all tasks surrounding the approval of credit card applications. Allocate the responsibility for charge authorizations as well as credit line increases to the risk management division.
Step 3

Create a division dedicated to customer service. Ensure this division responds to all customer requests, complaints and other feedback. Include within the division a traditional call center along with methodology to provide customer service via the Internet.
Step 4

Include a recovery department within the organization responsible for collecting all delinquent customer balances. Use outside collection agencies along with qualified law firms in order to enhance internal recovery efforts.
Step 5

Establish a division responsible for ensuring compliance with all federal and state regulations governing the issuance of credit. Place the task of lobbying applicable government lawmakers under the purview of this division.

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Current staff roster of the applicable credit card company Copies of all current regulations that govern credit card company operations
Current staff roster of the applicable credit card company
Copies of all current regulations that govern credit card company operations
According to the accounting firm KPMG, a case study on PSCU Financial Services quantified that outsourcing call center operations reduces expenses. Seek input from staffers within each division before finalizing your plans.
According to the accounting firm KPMG, a case study on PSCU Financial Services quantified that outsourcing call center operations reduces expenses.
Seek input from staffers within each division before finalizing your plans.
Ensure you avoid the waste associated with duplication of work across divisions. Consult with human resources specialists prior to reassignment of employees.
Ensure you avoid the waste associated with duplication of work across divisions.
Consult with human resources specialists prior to reassignment of employees.