Don't Break the Bank
Practice this intermediate revenue maximization case interview question in the Financial Services sector. Includes detailed problem prompt, clarifying questions, structured framework, and expert recommendation. Part of ProHub's 835+ consulting case library.
This is a structured revenue optimization case requiring candidates to analyze customer demand elasticity across two segments and multiple revenue streams (APR, merchant fees, annual fees). The case tests quantitative modeling skills, business intuition about pricing trade-offs, and strategic thinking about risk versus return—particularly relevant for financial services.
Clarifying Information
- Two core customer segments: Transactors and Revolvers. Transactors pay off their entire credit card balance each month, whereas Revolvers leave a balance remaining month to month
- Our client generates credit card revenue three ways: 1) Merchant Fee, 2) Annual Percentage Rate (APR), and 3) Annual Fee
- If the interviewee asks about costs, mention that the cost structure is the same regardless of the pricing strategy, so the interviewee should focus on revenues
- Competition is very strong in this space, so finding the right pricing strategy is critical
- Our client offers other lending products such as personal and student loans; however, our sole focus is around their new credit card product
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