Bank Loan-Issuing

Case Study Prompt

A bank has a loan-issuing operation that requires the following steps:

• The loan application is generated at a branch office.
• A complete applicant background check is performed at the branch office.
• The application and background check are sent to a loan processing office.
• The background check is updated and verified (this takes much less time
  than original check).
• The loan is either approved or denied.

The bank is considering getting rid of the first background check and only relying on the loan processor’s check to speed the process up. If the loan processor does the whole check with the proposed new software system, the check takes one additional hour per application at the processor’s office.

Should the bank implement the revised system?

Case Study Overview

In this Oliver Wyman style case interview practice question, you are being asked to help your client determine whether or not changing their processes will increase profitability. They are looking to you to study all the angles and make a recommendation based on quantitative facts.

This case study is ideal practice for a 1st round Oliver Wyman interview. We recommend using the Profitability Framework to solve this case study, but don’t let it box you in. A key element for setting yourself apart from the pack is showcasing your flexibility and the ability to work outside of the framework.

There are no math exhibits in this case. This a beginner level case interview you could expect to see in a first round at Oliver Wyman because of the qualitative difficulty score (2 out of 4).

Oliver Wyman Interview Tips

What does Oliver Wyman look for in its case interview candidates? Someone who can solve problems logically and has a high level of quant proficiency.

If mental math is not your strong suit, our math drills may be a helpful resource.

In this case, focus on coming away with 1 key takeaway or area you can improve in the case.

For out-loud practice with an expert, book an hour with an ex-MBB coach.