US Credit Card

Case Study Prompt

Capital One issues standard credit cards with an annual percentage rate (APR) of 19% to prime-rated customers.

For years, all the company’s competitors (American Express, Discover, Chase, Citibank, etc.) also issued credit cards with a 19% APR. However, now Capital One is faced with a challenge. The Wall Street Journal has reported that Capital One’s biggest competitor, American Express (Amex), has lowered its credit card interest rate to 15% APR.

This could be a reaction by Amex to the new realities of a post-pandemic market.

The CEO of Capital One immediately calls your consulting firm seeking a solution.

Case Study Overview

Your client is a top bank that is facing a potential threat in the market. Can you solve the case?

When thinking about a framework for this problem, use your creativity and business intuition. The Profitability Framework may be a helpful starting place, but firms like Capital One want to see how you combine your business acumen with your knowledge of frameworks to create a custom solution for the problem at hand.

There are no math exhibits in this case. This is a beginner level case such as one you might see in a first round case interview with Capital One.

Capital One Interview Tips

What does Capital One look for in its case interview candidates? Quant proficiency.

If you struggle with the math in this case, our math drills may be a helpful resource for shoring up your quant skills.

Improve upon your casing by coming away with 1 key takeaway or area you can improve in the case.

For out-loud case interview practice, book an hour with a coach today. Find more Capital One case studies in the Case Library!