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S3E6: Capital One Case Interview Example

Strategy Simplified

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The Different Revenue Sources of a Credit Card Company

I think my gut feeling is, yes, we should do this. $95 annual fee does not seem like a large enough cut for me. If we can still make back that revenue through other ways, perhaps increasing the interest rate by a few percent points on purchases would be one way. And number two would be to increase the credit card transaction fee per transactionwould be another way. So I think my gut Feeling is that this is doable. Okay. Good. That's helpful. What are the different revenue sources that a credit card company like this one has?

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