What you’ll be able to study from the strategic selections that went unsuitable.
When fledgling FinTech startup Bilt was purchasing round for a financial institution to accomplice with for its hire rewards card, incoming Wells Fargo CEO Charles Scharf’s acknowledged high strategic objective was to develop their bank card enterprise.
What higher means than to accomplice with a sizzling startup?
Greater than anything, Wells Fargo needed to appear related and seem “hip” to seize extra of a youthful demographic.
It appeared like an ideal match.
Quick ahead 20 months, and it’s turning into obvious that financially savvy younger Millennials are utilizing a couple of easy methods to benefit from the cardboard, costing Wells as a lot as $120 million a yr.
And Wells Fargo is sadly coming throughout extra like an inappropriately older particular person carrying fashionable apparel and talking “cool” lingo of their try and enchantment to younger, prosperous prospects.
To know why that is occurring, we’ll dig into a couple of fundamentals of how banks generate profits with bank cards and pull again the curtain on the co-branded rewards playing cards business.
