Group 5

Q1)

In accordance with the specifics of the case, phasing out current account is not the most
feasible ideation as it is a pivotal point of the customer acquisition strategy, Current accounts
has the largest consumer base, but as visible in the calculations above, customers with solely
current accounts are not profitable. Thus Infinity ought to use its Current Accounts to bring
customers in and sustain them for expedited services eventually .

Q2)
- Advantages:
Make each brand more focused on its own profitability and then make brand
managers responsible for their own P&L
More competitive among branches because branches would make money by
selling products and be rewarded for products they sold based on product
profitability
Offer customer added convenience, when banks enable their customers to
obtain banking services while simultaneously doing their other shopping duties
Gain more acquisition of new customers.
The supermarket branch is operated as a means of capturing a new market, and
it can be quite profitable

- Disadvantages
The supermarket brand will cannabalise business from the brick-and-mortar
bank and will add expenses in terms of costs and overheads
Supermarket branch has created some challenges, compared to traditional
brick-and-mortar banks, for example: most employees are housed in a single
central location, meaning that the brick-and-mortar bank provided its employees
with consistency in terms of managerial policies, cusomers, training, culture and
social opportunities
Difficult in managerial control, evaluation and influence, compared to brick-and-
mortal banks in which employees are working in close proximity
 Q3)

Profit
500

400

300

200

100

0
CA Only M Only CA++CC+M CC+M CA+M CC+CA CC Only
-100

With reference to the case clearly we can recognise that current account holders are least
profitable.
As a customer acquisition strategy current account holders form a perfect target group to upsell.
Infinity ought to focus on upselling its services and cross selling sister products
Infinity ought to leverage its existing current account holders to sell its mortgage and credit
cards services.
focus on cross selling and upselling Mortgage and Credit Card product lines.