South bank
Practice this intermediate product launch 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 case requires candidates to build a market-sizing model across three income segments, then evaluate two distribution channels (branches vs. online) using a payback period framework. The quantitative analysis reveals that while low-income entry appears viable (1-year payback), the real challenge is operational and structural—South Bank lacks branch presence in most low-income regions. Strong candidates will recognize this and explore hybrid approaches, such as leveraging technology or focusing on hidden low-income populations in well-penetrated areas like Lima.
Clarifying Information
- Peru has 35 M inhabitants. The local currency is PEN. Adults represent 70% of population.
- Country has 3 main economic segments, with clear different behaviours in credit card use.
- Consider Credit Card business as an independent unit of analysis.
- Revenues are only generated by merchant fee, a percentage of the amount paid with the card. During the last years has been stable at 2%.
- Each client can only have 1 credit card at the same time.
- To be approved, a project is required to have a payback period of 3 years. As a secondary metric, CMO prefers to generate the highest possible net cash flow in the first 3 years.