The challenge

Our client is one of the largest financial groups in the Middle East. The company has issued over 1.6 million credit cards, provides clearing services for more than 40,000 merchants, and offers an extensive range of financial services.

The local financial sector had remained static whilst the economy as a whole had prospered over last 20 years. Regulatory reform included Customer Services Regulations in 1981, Charge Cards Law and Regulations in 1986 & Banking Law and Anti- Money Laundering Law in 2000 . Yet a small number of large banks and financial institutions still dominated financial services. Regulatory reform designed to further enhance competition resulted in our client being required to spin off its credit card business as a separate entity.

The client engaged EDC to identify and evaluate future business models and  strategic options with a view to maximizing the valuation of its credit card business and finding the most viable strategic options available to the client.

How EDC helped

In the context of the changing dynamics of the local financial services market, EDC played a key role in identifying the optimal strategic direction and supporting business model to maximize the value of the firm over a 5 year period.

We worked closely with the client to design an approach which helped identify, evaluate, and recommend strategic growth options and concepts for the client by undertaking a strategic review which covered the following:

·       Review and analysis of the local market situation from competitive as well as regulatory perspectives for digital banking and financial services

·       Identify and incorporate best practices from key markets from across the world

·       Develop strategic growth options and business models available in financial services to maximise the value of our client’s credit card company

·       Given the evolving regulatory environment during the time span of the project, EDC prepared several scenarios for different possible market outcomes

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