Posted: 18 Sep 2008
Date Written: July 19, 2007
SUBJECT AREAS: Banking, Commercial banking, Customer acquisition, Risk management.
The "Central Bank" series analyzes the use of information and product design for managing the counterparty risk of newly acquired customers. Central Bank, a mid-sized regional U.S. bank, was attempting to grow its customer base by increasing the number of new checking accounts. Like many banks, Central saw checking accounts as an important tool for customer acquisition and loyalty-building. However, the bank realized that the aggressive pursuit of new accounts could result in an increased number of overdrafts and, ultimately, customer defaults. The first case, "Central Bank: The ChexSystems(SM) QualiFile(R) Decision," analyzes how QualiFile, a debit scoring product commercialized by ChexSystems, can be used to manage this risk.
Suggested Citation: Suggested Citation
Campbell, Dennis and Martinez-Jerez, Francisco de Asis and Ekins, Emily McClintock and Tufano, Peter, Central Bank: The Chexsystems(Sm) Qualifile(R) Decision (July 19, 2007). HBS Case No.: 208-029. Available at SSRN: https://ssrn.com/abstract=1270178