Cost Reduction for a Commercial Bank

This case is one of the 500+ cases in our case interview library. Review the prompt and overview before you tackle this case.

Case Study Prompt

ABC bank, which has quite a risk-averse culture, is one of the largest regional banks in XYZ area. 

Its main business is commercial banking, but not investment banking. This bank asked your team (a consulting firm) to help improve the bank’s profitability. 

After analyzing current situations, we agreed that reducing operating cost (Capital raising cost and interest are not included our scope) is the most important driver to improve profits. 

The responsibilities of your team are to analyze each cost item, find concrete methods to reduce costs, and help the client to implement the proposed changes.

Case Study Overview

In this Capital One style case, you are working with your team to help your client, a risk aversive bank, reduce costs and increase profitability. It’s your job to dig deep into the specifics of this case and find creative ways to help your client save money.

Are you getting ready for a second round Capital One interview? The Profitability Framework will help you solve this case study, but we recommend taking it a step further. The most sought after candidates use the existing framework and blend it with their own experience to create something new.

There are two math exhibits in this case, so make sure your quant skills are in high gear. This is an advanced case from our case interview library with a qualitative difficulty is 4 out of 4, making it a case you would likely run into in a second round at Capital One.

Capital One Interview Tips

What does Capital One look for?

A high degree of comfort with numbers/quantitative analysis, and familiarity with the financial services industry.

To get the most from this case, focus on the following things:

• Find 1 key takeaway or area you can improve
• Time yourself as you prepare – 2min for structure, 5min for math, 2min for brainstorming, 2min for conclusion
• Smoothing out your overall polish and communication skills

Looking for more practice? Check out our case interview library.

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