Accounting for Product Impact in the Consumer Finance Industry

22 Pages Posted: 16 Nov 2020

See all articles by George Serafeim

George Serafeim

Harvard University - Harvard Business School

Katie Trinh

Harvard University - Business School (HBS)

Date Written: November 2, 2020

Abstract

We apply the product impact measurement framework of the Impact-Weighted Accounts Initiative (IWAI) in two competitor credit card providers within the consumer finance industry. We design a monetization methodology that allows us to calculate monetary impact estimates on cardholder access to credit, affordability for merchants, financial health, and recyclability, among other factors. Our results indicate substantial differences in the impact that competitors have through their products. These differences demonstrate how impact reflects corporate strategy and informs decision-making on industry-specific areas.

Keywords: Product Design, Product Positioning, Society

Suggested Citation

Serafeim, George and Trinh, Katie, Accounting for Product Impact in the Consumer Finance Industry (November 2, 2020). Harvard Business School Accounting & Management Unit Working Paper No. 21-061, Available at SSRN: https://ssrn.com/abstract=3729385 or http://dx.doi.org/10.2139/ssrn.3729385

George Serafeim (Contact Author)

Harvard University - Harvard Business School ( email )

381 Morgan Hall
Boston, MA 02163
United States

HOME PAGE: http://goo.gl/q4cJ5A

Katie Trinh

Harvard University - Business School (HBS) ( email )

2 Arrow Street
Cambridge, MA 02138
United States

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