S3E6: Capital One Case Interview Example
Strategy Simplified
00:00
The $95 Annual Fee for Credit Cards
So by default, you actually mean this is a cost to the company. Is that right? So what I can do is we already have our transaction revenue from transaction fees. We can calculate our revenue from the interest and subtract out the cost from default. That would give us our net profit or before accounting for any other expenses. And then one final point of data, just to be clear, we're not looking at dropping that fee for all of our credit cards. The one that has the $95 annual fee and 40% of our cards are that card right now.
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