Sample answer from Question 4:
From table 1, we observe that the performance of mutual fund products of our client and the competitors is similar.
From table 2, we see that the account holders for our bank are comparable and even larger than the competition but the conversion to mutual fund customers is ~13% whereas for the competitors, it ranges from 24% to 37.5%
Interviewee should move the discussion forward and understand what could be causing the lower conversion from account holders to mutual fund investors.
Sample answer from Question 5:
There are three important observations:
- Salespeople have two kinds of products to sell and these products are cannibalizing into each other
- For the client, the incentive to sell high yield savings products compared to mutual fund products is much higher compared to the industry average
- Due to competing incentives and higher incentive to sell high yield savings products, the knowledge level of the sales staff is very low for mutual fund products (or vice versa i.e. knowledge for mutual funds is low and therefore they are not selling them)
Advanced comment - Since the profit margins for mutual funds is slightly higher than high yield savings products, there is no benefit from promoting high yield savings more than mutual funds and having more incentive for the same.