Credit Card Companies

[standardplayer]

Excerpt from Older Post Under: "Inputs needed: the design direction"

Bank Design Suggestions:
-Credit/Debit/Charge Card Brand with Interchange Fee Revenue (Earn fee revenue off every retail transaction that customers use your card to purchase)
-...

Interesting concepts. Could you provide more details as to how you envision these to be implemented?

Rough Idea for Credit/Debit/Charge Cards:

• Section of Bank HQ: (Edit: or Completely Separate Company HQ)
o Allows you to create and name a Card Brand (e.g. Visa, MasterCard, American Express)
o Set Card Fee 1.5%-2.5% and Rewards Target 1%-2% of Purchases
o Set an Annual Fee $0-$150/year
o Set an Advertising Budget and See Brand Rating
o See Market Share (Number of Cardholders, Market Share Graph or Pie Chart, etc.)

• Retail Transactions/Fee Example:
o Retail Sales $15 Billion:
-Cards 80% $12 Billion
-Cash 20% $3 Billion
o Market for Card Fees: 1.5%-2.5% Fee x $12 Billion = $180-$300 Million in Fees
o Annual Fees: Population 5 Million
-Upper Class/Luxury Population 1.5 Million x $100-$150/year = $150-$225 Million
-Regular Population 3.5 Million x $25-$50/Year = $87.5-$175 Million

• Market Share/Competition:
o Customers:
-Upper Class/Luxury Population Weighs Brand Recognition Highly willing to pay Large Annual Fee to be part of Exclusive Club (20%-35% of Transactions) (like American Express Premium Cards)
-Regular Population Weighs Rewards Highly Willing to Pay Small Annual Fee (65%-80% of Transactions) (like Visa or other Mass Market Cards)
o Card Selection Effected by:
-Brand Recognition
-Reward Program Competitiveness
-Cost of Annual Fee

• Revenue and Expenses:
o Revenue:
-1.5%-2.5% of Retail Transactions by Customers
-Annual Fee $0-$150/year per Cardholder ($25-$50/Mass Market, $100-$150/Luxury Card)
o Expenses:
-Rewards of 1%-2% Target for Cash Back or Equivalent Points where 1/3 of people Don't Redeem Rewards so effectively 0.67%-1.34% Expense
-Advertising
-Infrastructure and or Operating Costs: Transaction Processing Data Cost, etc.

Additional Ideas:
• Banks could use Credit Card Loans to generate Higher Interest on a portion of their Assets

What do you Think? Any Other Practical Ideas to Implement to make it realistic, challenging, and/or fun?

[JasonLJJ]

Great idea! Also would be great to include the credit card loans as part of bank loan portfolio!

[colonel_truman]

In the original game we just had the consumer goods sector reflected. Credit services sounds like a good addition as I believe the Digital Age DLC includes telecom software, etc and then now we have financials with the Banking DLC.

Anyway, you inserted an interesting concept there about having two different groups of people. It would be nice to discuss also the possibility of including a demographic angle to the game.

[Kristo]

Hi,

i like the idea, i vote Yes for it!
Can i add little something to this?

In Banking DLC we'll have bonds with different ratings, based on risk. We can have something like that in this idea here too.
How? Easy, just create 3 (or 2, or 5, or... ) levels of credit cards, based on default risk. Here's an example:

Basic Credit Card:
- aimed at common people with low-to-medium income
- there'll be no entry fee
- monthly fee - 10%
- no bonuses for these clients
- not usable in luxury stores
- needs serious investment in advertising
- most commont product = many possible clients
- high risk of default and possible losses

Premium Credit Card
- aimed at middle class and upper middle class people with really good income
- entry fee is $10
- monthly fee is 5%
- some bonuses for clients, usable in some stores, etc
- medium default risk
- will be aimed to fewer people than Basic Card, so less money spent on advertising
- competition here will be more serious

Elite Member Credit Card
- aimed at upper classes, ultra rich, etc.
- entry fee is $100
- monthly fee is 1-2%
- very small default risk
- most profitable product in the credit card sector
- a lot of extra stuff and bonuses for the clients
- target group is relatively small
- almost no need of advertising

other options:
- when creating new credit card product, you shall see the competition in this credit card level
- profits will be determined by the state of economy, number of people, competition, training of your bank staff...
- you can name the credit card, adding its name to either "card", "premium card" or "elite card" (which are based on its level)
- bonusses included in the card, may be based on shopping in your stores (that your corp owns) - or negotiated with other corporation.
- maybe: credit card firms (separated from the banks) that can issue such cards, BUT the banks should be able to do that on their own (so the player can choose either to run only credit card firm, or the whole banking services, that include credit cards too)

[mdemircan2]

Merhaba David,
5 banka yöneticisi ile Capitalizm Lab Banking DLC ​​oynadım. Banking DLC'yi beğendiler, ancak bazı eksiklikler gördüler; Aşağıya yazdım:
A- Bankanın vereceği kredi türleri çeşitlendirilmeli;
örneğin: 1-konut kredisi, 2-ticari yapı kredisi, 3-eğitim kredisi,
4-Firmalara kredi: Banka sektörlere verdiği kredi yüzdesini ayarlayabilmelidir.
Örneğin Ev aksesuarları için %15, tekstil için %20 ve otomotiv sektörü için toplam mevduatın %65'i.

B-Sektörel Yoğunlaşma Olmalı:
Banka, vereceği kredileri kredi türlerine göre belirli bir yüzdeye göre dağıtmalıdır.
Örneğin bankanın vereceği kredilerin %10'unu konut kredisi, %5'ini eğitim kredisi, %25'ini ticari bina kredisi olarak,
%5'ini otomotiv sektöründeki firmalara vermeyi planlayabilmelidir. .

C- Bankanın gelir kaynakları çeşitlendirilmelidir.
Şu anda bankanın sadece faiz geliri var.
faiz geliri, gelir bankacılık işlemlerinden: bankanın gelir örneği vb EFT, hesap işletim ücreti ...

D-takiben banka ve kredi vadelerinin tarafından toplanan mevduatın vade denkliği a olarak verilecek performans göstergesi.
Örneğin, banka 1 yıl vadeli topladığı mevduatı 1 yıl vadeli kredi vermek için kullanıyor mu?
Yoksa 1 yıl vadeli topladığı mevduatı 3 yıl vadeli kredi vermek için mi kullanıyor?
Bu önemli bir sorun.

[Neckername]

I definitely think this should be implemented in the game. I created a post a while ago here and have since added a poll with a few different ways of implementing this concept in game. I love the input here in this post as well!