The Business Plan I am presenting is about Online Credit Cards for Graduates. This is one of the unique idea and if approved, Barclays will be the first one to head start this business plan. More than 300,000 Students Graduate in the UK every Year and each year only a small proportion of them find it hard to get placements i. e. 5. 5%1. After Graduation students need extra funds to sort themselves out and get prepared to enter the work environment which is entirely different from casual college / university life.
At that spot our investment into such graduates will give them helping hand towards their direction and prove to be successful and profitable for our Bank. Looking towards ourselves, we were all students in the past and are aware of the problems and difficulties we faced all the way upto the point where we are standing today. If such students can be provided funds at the right time, it can reduce their struggle and our company can benefit from it in the future as well as gain their loyalty towards our future products.
An online Credit Card that will help them Pay for course books, prospects and job interview related material as well as general shopping. The card will have an initial credit of i?? 1K and as soon as the students get into work environment the credit will be raised depending on the type of job, position and salary as well as performance. The Project will require an estimated i?? 0. 2Bn initial investment and has a projection of up to i?? 2Bn within 3 years with an initial focus on 200,000 customers per year at initial year.
Barclays Bank has been dominating the Credit card market as Barclays bank was the first bank to introduce the Credit card in 1966 as well as first bank to introduce online banking to more than its 800,000 customers. One in Five Credit cards is a Barclays Card, meaning a right choice for its 8. 4 million customer base. Barclaycard has 10 Personal and 4 Business Credit card types. The company also had negotiations with other retailers to issue their credit cards i. e. Orange Credit Card, Thomas Cook & Bhs Credit Card etc.
As Barclays has been providing this service from a long time and is quiet experienced in all aspects from product knowledge to marketing and service. There is strong customer base and a loyalty among its customers so this product is going to be a success as well like all other opportunities the bank had and proved itself in those tasks. The Credit Card market in UK has shown a rise since it started in 1995 with only 25 million cards issuing to 70 million cards in 2005 The market has shown a decline in growth rate due to recession bit there has been a rise from January 2010 the issuance reached 68 million cards2.
There is great opportunity to implement a new business proposal to become a leader in upcoming opportunities. Following are the figures of Credit Card Market. A Market research will be conducted to increase opportunities for stockholders to increase the availability of affordable housing finance, community development finance, and financial and credit services in underserved neighbourhoods and communities. In conducting research and identifying opportunities, bank will have consultation with stockholders, housing associates, the Advisory Council and public and private housing and economic development organizations etc.