Situation
A global investment bank considering an investment in a card-not-present payments fraud management firm turned to Glenbrook to assess the firm’s viability and ability to expand market prominence over a three-to-five-year horizon. Glenbrook designed an engagement to help the bank understand the competitive dynamics in fraud management, classify and identify the firm’s competitors, evaluate the firm’s market position, quantify its total addressable market, and assess its overall potential.
Approach
To help this client, Glenbrook conducted a series of assessments to identify and qualify all relevant market forces. We validated our analyses with industry interviews asking questions to explore:
- KPIs most relevant to fraud management decision making
- Layers of passive and active protections typically employed
- Perspectives on the technologies that have the most potential in the next three to five years
- Prioritized risk management investments
- Key drivers in vendor selection
- The importance of features, like chargeback guarantees, on vendor selection
- Changes in technology, rules, or market conditions that could affect the value proposition of certain product features
- Drivers that compel a company to change providers.
Impact
Glenbrook was able to validate the prospect of the payments fraud management firm to reach $200-$300 million in revenue within five years. Our investigation helped the investment bank determine the extent to which the firm was a viable investment target.
