Q. Which clients should the bank migrate over and why?

A. 184 clients are migrated considering time value of money

Q. Which of the variable factors are more significant?
A. Risk Rating and number of cards per client are more significant
Methodology Followed
1. Migration Year
Find Migration cost incurred at time of deal
Total Service cost incurred at end of year
Total Cost of issuing card
Total variable cost
Total revenue
Realized Revenue
Expected Contribution
Realized Contribution
Unrealized Revenue
Additional cost of funds
2. Calculated accounting risk
3. Calculated client attrition using binary
4. Year 2 Year 5
Annual Spend volume, # of cards and total service costs found
using NORM.INV, RAND(), VLOOKUP and MATCH Functions
Remaining calculations based on the above values
Functions used to make it easy to replicate for further years
5. Find NPV for all clients
6. Select clients with NPV<0

7. Conduct Monte Carlo Simulation to find probability of loss of

each of these clients
8. Clients with higher probabilities of loss will not be migrated
9. Calculate P&L for each year with selected