Bruno Perreault, MasterCard's group head for small and midsize enterprises, said in an interview that the product is tailored for small businesses that charge at least $25,000 of purchases a year. "This segment is crucial to our customer financial institutions, because they make up 20% of the small-business card market" yet account for more than 80% of card spending" (Thompson, 2007). USA World Bank (UWB), a financial institution with branches throughout the United States as well as an international presence, offers a new financial product on a yearly basis. Return on investment is always a concern, and market research is expenditure. "The only automatic small business savings program for both credit and signature debit purchases, MasterCard Easy Savings offers cardholders an easy way to save on their business purchases. The program is an extension of our ongoing commitment to empower small businesses with innovative payment solutions that help them successfully manage and grow their business," said Bruno Perreault, Group Head, Small and Mid-Sized Enterprises, MasterCard Worldwide. "Easy Savings not only gives MasterCard business cardholders access to exclusive savings, but it also provides participating merchants and financial institutions with a unique opportunity to build customer loyalty" (M2, 2007). Several of these products have seen success, but recently the marketing initiatives have produced lower than average revenues and UWB needs to ensure a greater earnings ratio (University of Phoenix, 2005).
The present focus is on a credit card with rewards. New Product Development is driving a consumer-based credit card which offers rewards such as frequent flier miles or other travel related enticement. The marketing group focuses on a comparable credit card for small businesses with a larger credit limit and some reward components. Both financial products offer significant earning potential for UWB, provided the research data... [continues]
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