Case Study: Health Checks

Client Situation

An international charity with headquarters in the UK, derived a substantial income (including a guaranteed "underwrite") from a longstanding credit card partnership, but lacked a detailed understanding of the market.

The market had changed considerably since the last agreement was signed, with far less competition from suppliers and reduced profitability.

The partner was seeking to change the basis of the agreement to one which reduced the guarantee and increased the risk to the charity, by moving from a simple "spend based" model.

Our involvement

Provided the charity with an honest appraisal of the affinity credit card market and the changing dynamics affecting profitability for providers and partners.

Benchmarked the performance of the portfolio against other affinity groups of a similar size and profile. With permission from the client, undertook a number of informal market discussions with other potential suppliers.

Analysed the bank's detailed proposals in light of the portfolio's performance and likely future market trends.


The charity was much better informed about the performance, strengths and weaknesses of its portfolio and the impact of market changes.
Support was given to the charity's negotiating team, allowing them to ask additional questions and to adopt a stronger bargaining position.
The partnership was renewed for a further 5 years and in addition to maintaining existing benefit levels, the charity was better equipped to seek and receive better intelligence on the portfolio and market from its partner.

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