Mitron Bank Credit Card Analysis
Problem Statement
Mitron Bank, a well-established financial institution, is considering the introduction of a new line of credit cards to expand its product offerings and market reach. However, the strategy director, Mr. Bashnir Rover, is cautious and has requested a pilot project with a sample dataset of 4000 customers. Peter Pandey, a data analyst at AtliQ Data Services, has been assigned the task of analyzing this sample data to provide actionable insights that will guide the tailoring of credit cards to customer needs and market trends. The successful acquisition of the project depends on Peter's ability to deliver data-driven recommendations that impress Mr. Bashnir Rover and his team
Objective
•Insights Discovery: Analyze demographics, income usage, and spending patterns to reveal key insights.
•Segment Identification: Define crucial customer segments for targeted strategy formulation.
•Recommendations & Dashboard: Deliver actionable credit card feature recommendations through a user-friendly dashboard.
Tools Used for Project
Power BI (utilizing DAX functions)
Microsoft PowerPoint
Key Findings
1. Customer Segmentation:
Identified four distinct customer segments based on demographics, income, and spending patterns: Salaried IT Employees, Salaried Other Employees, Freelancers, and Business Owners.
Salaried IT Employees in Mumbai emerged as the most lucrative segment, exhibiting high income levels and significant spending across various categories.
2. Income Utilization:
Salaried IT Employees showed the highest income utilization rate, particularly in categories such as Bills, Groceries, and Electronics.
Identified opportunities to tailor credit card features to incentivize higher spending in these categories.
3. Spending Patterns:
Salaried IT Employees exhibited the highest spending patterns, with substantial expenditures in categories like Bills, Groceries, and Electronics.
Credit cards were the preferred payment method among customers, indicating an opportunity to offer rewards and benefits that encourage card usage.
4. City-wise Analysis:
Mumbai emerged as the city with the highest customer engagement, income utilization rate, and spending.
Other key cities like Chennai, Bengaluru, Delhi NCR, and Hyderabad also showed significant customer activity and spending patterns.
5. Marital Status and Age Analysis:
Married individuals constituted the majority of customers, suggesting potential family oriented spending behaviors.
The 2534 age group exhibited the highest income utilization rate and spending, highlighting them as a key demographic for targeted marketing strategies.
6. Recommendations:
Proposed tailored credit card features and rewards to cater to the specific spending habits and preferences of different customer segments.
Suggested collaborations with merchants in key cities to offer exclusive deals and promotions, driving customer engagement and card usage.
Credit Card Feature Recommendations
1. Rewards and Benefits:
Offer bonus rewards points or cashback on categories where customers exhibit high spending, such as Bills, Groceries, and Electronics, to incentivize card usage.
Provide exclusive discounts or offers at partner merchants in key cities like Mumbai, Chennai, Bengaluru, Delhi NCR, and Hyderabad to enhance customer engagement.
2. Travel Benefits:
Introduce travel related benefits, such as airline miles or hotel discounts, targeting customers who frequently travel for business or leisure.
Provide complimentary travel insurance and airport lounge access to enhance the card's value proposition.
3. Security Features:
Enhance card security with features like contactless payments, two factor authentication, and real time transaction alerts to protect customers against fraud.
Provide a virtual card option for online transactions to enhance security and convenience for customers.
4. Customizable Spending Limits:
Offer customers the flexibility to customize their spending limits based on their income and spending patterns, providing greater control over their finances.
5. Family Benefits:
Introduce family oriented benefits, such as supplementary cards with shared rewards, to appeal to married customers and encourage family spending.
6. Digital Wallet Integration:
Enable seamless integration with popular digital wallets like Google Pay and Apple Pay for convenient and secure mobile payments.
7. Financial Management Tools:
Provide customers with tools and insights to track their spending, set budget goals, and manage their finances effectively, enhancing their overall banking experience.
These credit card feature recommendations are tailored to meet the specific needs and preferences of different customer segments, driving card adoption and usage while enhancing customer satisfaction and loyalty.
Conclusion
The Mitron Bank Credit Card Market Analysis project exemplifies my ability to deliver actionable insights that drive strategic decision-making and business growth. By analyzing a sample dataset of 4000 customers, I was able to uncover key trends and patterns that guided the development of targeted credit card features and marketing strategies. My work not only impressed the strategy director and senior management at Mitron Bank but also contributed to the successful acquisition of the project.
Through this project, I have demonstrated proficiency in data analysis, visualization, and strategic thinking, as well as strong communication and stakeholder engagement skills. I am confident that my contributions have laid a solid foundation for the introduction of Mitron Bank's new line of credit cards, positioning the bank for enhanced market reach and revenue growth.
Overall, the Mitron Bank project showcases my ability to leverage data-driven insights to drive business outcomes and make a tangible impact on an organization's success.