Mckinsey case collection part 2

Retail Bank (McKinsey Quick on your Feet Competition)

Exhibit 1 Our client has 5 distinct groups of customers  Annual $ per customer 1

Revenue Potential

Margin from banking costs

Transaction costs

Cost to serve

% of total clients

Profit

W o rk

Group 1

100

15

-5

-15

in g D

30%

-5

ra ft L a s t M o d

Group 2

50

100

-60

-15

if ie d

20%

-25

1 0 /2 3 /2 0 1 1 8 :4

Group 3

20

15

-5

-15

20%

-5

5 :4 4 P M ri

P n te d

Group 4

100

Group 5

100

1 15,000,000 customers

50

-20

75

-15

-15

-15

15

10%

45

20%