Rules-based software from Chordiant Software, Inc. allows credit card banks that process with Total System Services, Inc. to capitalize on the latest in customer relationship management (CRM) while reaping the benefits of third-party processing. This TowerGroup Research Note examines the business drivers in credit cards mandating CRM in one form or another and profiles the Chordiant software in detail.
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Highlights
One of the most pressing questions for credit card issuers of all shapes and sizes is customer relationship management (CRM). A number of issues unique to the credit card business make this functionality, critical in a multichannel environment, more difficult to accomplish than may be imagined at first glance.
The most prominent of these is the highly outsourced nature of the US credit card business. Although certain very large and very prominent banks among the top 10 issuers—notably, but not restricted to, Citigroup and American Express Co.—process their card accounts in-house, others rely heavily on outsourcers.
Two large third-party processors, First Data Corp. (FDC) and Total System Services, Inc. (TSYS), process between them two-thirds of US credit card accounts. While integrated CRM is essentially an MIS function for self-processors, it is as much a logistical problem for those relying on outsourcers.
Into this gap has stepped Chordiant Software, Inc., which offers a rules-based, multichannel call center solution that can be adapted to fit the needs of most banks. In its agreement with TSYS to provide a version of its software for use by TSYS’s credit card processing customers, Chordiant provides a CRM solution that can allow banks to take advantage of new technology as well as the cost savings outsourcers afford.
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