Megabank Underpenetration

Case Interview Prompt

Megabank is a bank that issues credit cards. New cards are sold in three main ways:

1. Cross-sell to existing banking customers
2. Sell to new customers via direct mail campaigns
3. Distribute via private label partnerships with retailers and airline

Megabank is looking for new card member growth areas in the United States. Its Hispanic market penetration is low compared to comparable banks’ penetration rates. That group is a fast growing ethnicity and the bank wants to capitalize on it.

What is the current problem (i.e., what are the possible reasons for the under penetration in the Hispanic market?)? How should the bank move forward?

What might be wrong? Hypothesize.

Case Interview Overview

Prepping for a final round McKinsey case interview? This interviewer led case will prepare you.

The client in the case is a bank that issues credit cards. The company wants to expand its credit cards into the Hispanic market, where it has low penetration. Your job is to find the root causes for the low penetration.

The Market Study Framework is your friend as you lay out a structure for the interviewer led case. However, don’t isolate yourself to that framework alone. Utilize your knowledge of the case frameworks to build the structure that will most effectively solve the problem in the case.

The case has no math exhibits, but has a quantitative difficulty of 3/4. Make sure your mental math is on point.

McKinsey Interview Tips

McKinsey places a high value on structure/organization in its future consultants.

In this case, focus on maintaining good structure throughout the entire process (case recap, communicating your structure, brainstorming, and presentation)

To get the most out of this interviewer led case, do these 2 things:

• Focus on your communication (clear and structured)
• Time yourself as you walk through the case (recommended timings listed on the Guidance pages)

Schedule a session with an ex-MBB coach for out-loud McKinsey case practice.