What you’ll be able to study from the strategic selections that went incorrect.
When fledgling FinTech startup Bilt was procuring round for a financial institution to companion with for its lease rewards card, incoming Wells Fargo CEO Charles Scharf’s said high strategic aim was to broaden their bank card enterprise.
What higher manner than to companion with a scorching startup?
Greater than the rest, Wells Fargo needed to look 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 just a few easy methods to profit 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 clients.
To grasp why that is taking place, we’ll dig into just a few fundamentals of how banks make cash with bank cards and pull again the curtain on the co-branded rewards playing cards trade.
