Oliver Wyman Interview Question: Case question: Determine how ... | Glassdoor

Interview Question

Summer Intern Interview(Student Candidate) Cambridge, MA

Case question: Determine how to increase revenues for the

  owner of private ATM machines

Interview Answer

2 Answers


You want to look at the competitive environment around the ATM machines. Clarify that 'private' means that everyone who uses it must pay a certain fee, then assess that fee and what competing ATM machines are charging in the vicinity. Look at substitutions in the market (e.g. Walgreens a block away that allows up to XX dollars cashback with no fee), and gauge what value you bring the consumer.

After you know this, you have a few options:
1) increase the fee for customers
2) negotiate with the customers' banks that you'll charge them more and the banks will charge them less, so the double charge is still the same
3) Build more ATM's in areas that have less competition, such as underserved bars, state fairs, events, casinos, etc...
4) Charge a tiered fee instead of a flat fee, with incentives to withdraw more. e.g. 2.50 to withdraw 0-20 dollars, but 3.00 to withdraw 20-40, etc...
5) Try to create seasonal balance by placing ATM's in accessible areas that will be used in all four seasons.

Tim on Oct 17, 2010

Hey Tim
Thanks for the inputs, appreciate it. Do you have any more interesting cases on you that you'd like to share?

Pruthvi on Oct 18, 2010

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