You are the head of the deals partnership dept at a bank and are considering partnering with a rideshare app What factors would you consider before the partnership with the other company Calculate the profit Loss with the given data 10,000 thousand Cards Fraud $10 card month Annual fee $95 Interest revenue $15 card month You decide to partner with the rideshare app by introducing a statement credit of $20 statement credit card and will spend $1 million dollars in marketing costs per year You will incur both costs How many cards would you need to maintain the same profit as calculated previously Now introducing a new segment of customers There will be 25 of the new customers who will sign up for the card using the $20 statement credit and close the card in the first month (They will not pay annual fees, accrue interest, or have fraud costs) How many more customers will you need now to maintain the same profit (The key here is that it's only applicable to the new customers Previous customers will have the same costs and revenue) Given the newly calculated number of customers to achieve profitability, does it seem achievable (subtext given the marketing costs)

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Posted on Oct 03, 2024

You are the head of the deals partnership dept. at a bank and are considering partnering with a rideshare app. What factors would you consider

You are the head of the deals partnership dept. at a bank and are considering partnering with a rideshare app. What factors would you consider before the partnership with the other company? Calculate the profit/Loss with the given data:

10,000 thousand Cards
Fraud $10/card/month
Annual fee $95
Interest revenue $15/card/month

You decide to partner with the rideshare app by introducing a statement credit of $20 statement credit/card and will spend $1 million dollars in marketing costs per year. You will incur both costs.

How many cards would you need to maintain the same profit as calculated previously?
Now introducing a new segment of customers. There will be 25% of the new customers who will sign up for the card using the $20 statement credit and close the card in the first month. (They will not pay annual fees, accrue interest, or have fraud costs)
How many more customers will you need now to maintain the same profit? (The key here is that it's only applicable to the new customers. Previous customers will have the same costs and revenue). Given the newly calculated number of customers to achieve profitability, does it seem achievable (subtext: given the marketing costs)?