Financial Services Case Interview: Complete Guide (2026)

Author: Taylor Warfield, Former Bain Manager and Interviewer


Financial services case interview


Financial services case interviews assess your ability to solve complex business problems specific to banks, insurance companies, investment firms, and other financial institutions. They require you to understand financial concepts, industry dynamics, and regulatory considerations that don't come up in typical cases.

 

I’m a former Bain Manager and interviewer and this guide will teach you everything you need to know to crush financial services case interviews.

 

But first, a quick heads up:

 

Learning case interviews on your own can take months.

 

If you’re looking for a step-by-step shortcut to learn case interviews quickly, enroll in my case interview course and save yourself 100+ hours. 82% of my students land consulting offers (8x the industry average).

 

What is a Financial Services Case Interview?

 

A financial services case interview places you in a hypothetical business situation involving a financial institution. You'll work with the interviewer for 30 to 45 minutes to develop a recommendation for a business problem.

 

These cases differ from traditional cases because they focus on challenges unique to financial services companies. Instead of helping a retailer increase profits or a tech company launch a product, you'll solve problems such as:

 

  • Should a bank expand its wealth management business?

 

  • How can an insurance company improve customer retention?

 

  • Should a private equity firm acquire a regional bank?

 

  • How can a credit card company increase profitability?

 

Financial services cases test whether you understand the industry well enough to identify the right issues and develop sound recommendations. You'll need to demonstrate both general problem-solving skills and specific financial services knowledge.

 

Why Do Consulting Firms Use Financial Services Cases?

 

Consulting firms use financial services cases for three main reasons.

 

First, they want to assess your interest in and understanding of the financial services industry. If you can't handle a financial services case, you probably won't enjoy working on financial services projects for actual clients.

 

Second, these cases test whether you have the baseline knowledge needed to be effective from day one. Financial services projects move quickly and clients expect consultants to understand their business. You can't spend weeks learning basic banking concepts when you're already on a project.

 

Third, financial services cases help identify candidates who will thrive in this practice area. The best financial services consultants have genuine curiosity about how financial institutions work. These cases reveal whether you have that curiosity or if you're just checking a box.

 

Types of Financial Services Case Interviews

 

Financial services cases fall into five main categories. You should prepare for all five types since you won't know which one you'll get.

 

Banking Cases

 

Banking cases focus on commercial banks, investment banks, or retail banks. Common questions include:

 

  • Should a regional bank expand to new markets?

 

  • How can a bank improve its commercial lending business?

 

  • Should a bank launch a new digital banking platform?

 

  • How can a bank reduce operating costs?

 

These cases require you to understand how banks make money through interest income, fees, and trading. You'll also need to consider regulatory constraints that limit how banks can grow and operate.

 

Insurance Cases

 

Insurance cases deal with life insurance, property and casualty insurance, or health insurance companies. Typical questions include:

 

  • How can an insurance company reduce claims costs?

 

  • Should an insurer launch a new product line?

 

  • How can an insurance company improve its distribution strategy?

 

  • Should an insurer acquire a competitor?

 

You'll need to understand insurance economics, including premiums, claims, loss ratios, and distribution channels. You should also know how insurers invest premiums to generate returns.

 

Asset Management Cases

 

Asset management cases focus on mutual fund companies, hedge funds, or private equity firms. Common scenarios include:

 

  • How can an asset manager attract more assets under management?

 

  • Should a fund launch a new investment product?

 

  • How can a private equity firm improve portfolio company performance?

 

  • Should an asset manager acquire another firm?

 

These cases require understanding fee structures, investment performance, and the competitive dynamics of asset management.

 

Payment and Cards Cases

 

Payment cases deal with credit card companies, payment processors, or fintech companies. You might see questions such as:

 

  • How can a credit card company increase card usage?

 

  • Should a payment processor expand internationally?

 

  • How can a card issuer reduce fraud losses?

 

  • Should a fintech company partner with traditional banks?

 

You'll need to understand interchange fees, payment economics, and the various players in the payments ecosystem.

 

Capital Markets Cases

 

Capital markets cases focus on trading, market making, or securities issuance. Example questions include:

 

  • How can a broker-dealer increase trading volumes?

 

  • Should an investment bank expand its underwriting capabilities?

 

  • How can a trading firm improve profitability?

 

  • Should a firm enter a new asset class?

 

These cases require understanding market microstructure, trading economics, and regulatory considerations for market participants.

 

Essential Financial Services Concepts

 

You need to understand certain financial concepts before walking into a financial services case interview. Here are the most important ones.

 

How Banks Make Money

 

Banks have three main revenue sources.

 

  • Net interest income comes from the spread between what banks pay depositors and what they charge borrowers. If a bank pays 1% on deposits and charges 5% on loans, it earns a 4% spread.

 

  • Fee income includes account fees, transaction fees, and service charges. These fees provide stable revenue that doesn't depend on interest rates.

 

  • Trading and investment income comes from buying and selling securities. Investment banks generate significant revenue from trading activities.

 

Banks also have costs to consider. They pay interest on deposits, face credit losses when borrowers default, and incur operating expenses for staff, technology, and branches.

 

Insurance Economics

 

Insurance companies collect premiums from policyholders and pay out claims when insured events occur. The difference between premiums collected and claims paid is the underwriting profit.

 

The loss ratio measures claims paid divided by premiums earned. A 60% loss ratio means the insurer pays 60 cents in claims for every dollar of premium. Lower loss ratios indicate better underwriting performance.

 

Insurance companies also invest premiums before paying claims. This investment income can be substantial, especially for life insurers who hold premiums for many years.

 

Combined ratio adds the loss ratio and expense ratio. A combined ratio below 100% means the insurer is profitable from underwriting alone.

 

Asset Management Business Model

 

Asset managers charge fees based on assets under management. A typical mutual fund might charge 0.5% to 1% of assets annually.

 

Performance drives asset flows. Funds with strong returns attract new money while poor performers see outflows. This creates a virtuous cycle for successful managers.

 

Scale matters tremendously in asset management. A firm managing $100 billion can spread fixed costs across far more assets than a $1 billion manager.

 

Payment Economics

 

Payment companies make money from interchange fees and processing fees. Interchange is the fee merchants pay when customers use credit or debit cards, typically 1% to 3% of the transaction.

 

Card issuers also earn interest when cardholders carry balances. This interest income can exceed interchange revenue for some issuers.

 

Fraud losses and charge-offs eat into payment company profits. Companies invest heavily in fraud detection to minimize these costs.

 

Key Financial Metrics

 

  • Return on equity measures how efficiently a financial institution uses shareholder capital. ROE of 10% to 15% is typical for banks.

 

  • Net interest margin shows the spread between interest earned and interest paid, expressed as a percentage of interest-earning assets.

 

  • Assets under management measures the total value of client money managed by an asset manager or private bank.

 

  • Cost-to-income ratio divides operating expenses by revenues. Lower ratios indicate better efficiency.

How to Approach Financial Services Cases

 

Financial services cases follow the same basic structure as traditional cases, but with financial services-specific considerations. Here's how to approach them.

 

1. Understand the Problem

 

Start by making sure you understand the client and their business. Ask clarifying questions if you need to.

 

  • What type of financial institution is the client?

 

  • What products or services do they offer?

 

  • What's their geographic footprint? Are they local, regional, national, or international?

 

  • Who are their customers?

 

2. Create a Framework

 

Your framework should address the most important factors for solving the case. Use your knowledge of financial services to identify what matters most.

 

For a bank profitability case, you might structure your framework around:

 

  • Revenue drivers (net interest income, fees, trading)

 

  • Cost drivers (interest expense, credit losses, operating costs)

 

  • Regulatory constraints

 

  • Competitive dynamics

 

For an insurance growth case, consider:

 

  • Market attractiveness

 

  • Product portfolio

 

  • Distribution channels

 

  • Underwriting and pricing capabilities

 

For an asset management case, think about:

 

  • Investment performance

 

  • Product offerings

 

  • Distribution and client acquisition

 

  • Fee structure and competitiveness

 

Make sure your framework addresses financial services-specific issues. A generic framework that could apply to any industry won't impress your interviewer.

 

3. Analyze Quantitatively

 

Financial services cases often involve significant quantitative analysis. You'll need to calculate returns, analyze financial statements, or estimate market sizes.

 

Be comfortable with basic financial math. You should be able to calculate:

 

  • Net interest margin

 

  • Return on equity

 

  • Loss ratios

 

  • Fee revenue based on assets under management

 

  • Break-even points for new products

 

Show your work clearly. Walk the interviewer through your calculations step by step.

 

Check your answers for reasonableness. If you calculate that a bank has a 50% ROE, something is probably wrong with your math.

 

4. Deliver a Recommendation 

 

At the end of the case, you need to provide a clear recommendation. Your recommendation should directly answer the original question and be backed by the analysis you've done.

 

Structure your recommendation in three parts:

 

  • Start with your clear answer: Say "I recommend the bank should expand into wealth management" or "I recommend against acquiring the insurance company." Don't be wishy-washy or hedge with "it depends."

 

  • Provide three supporting reasons: These should be the most compelling findings from your work. For example: "First, the market opportunity is substantial with $50 billion in addressable assets. Second, we have competitive advantages through our existing branch network. Third, the financial returns exceed our hurdle rate with a two-year payback."

 

  • Outline the key risks and next steps: What could go wrong with your recommendation? What would you want to investigate further before implementation? This shows balanced thinking and practical business sense.

 

Deliver your recommendation confidently. Make eye contact, speak clearly, and own your answer. Your interviewer wants to see that you can make tough calls and defend them, just like you'll need to do with real clients.

 

If the interviewer challenges your recommendation, don't immediately back down. Acknowledge their concern, explain your reasoning, and discuss how you'd address the issue. Being able to defend your thinking is as important as getting the right answer.

 

If you are finding this article helpful, you’ll love my step-by-step case interview course. 82% of students who get an interview land a consulting offer. Join 3,000+ users who mastered case interviews in as little as 7 days while saving yourself 100+ hours of headache.

👉 Sign up today 

 

Financial Services Case Interview Example

 

Let's walk through a sample financial services case to see what it can actually look like.

 

The Case Prompt

 

Your client is First Regional Bank, a commercial bank with $50 billion in assets. They operate 200 branches across three states in the Southeast United States. First Regional is considering whether to expand its wealth management business, which currently serves high-net-worth individuals with over $1 million in investable assets.

 

The bank currently has $5 billion in wealth management assets under management and generates $40 million in annual revenue from this business. They're considering whether to expand to serve mass affluent customers with $250,000 to $1 million in investable assets.

 

Should First Regional expand its wealth management business to serve mass affluent customers?

 

1. Understand the Problem

 

Before structuring your approach, ask a few clarifying questions.

 

  • What's driving this consideration?

 

  • What are our current capabilities? Does the bank have the technology, advisors, and products to serve mass affluent clients?

 

  • Who are our current competitors?

 

  • What are our financial objectives? Is the bank focused on fee income growth, cross-sell to existing banking clients, or something else?

 

2. Create a Framework

 

Structure your approach around the key factors for this decision:

 

Market Attractiveness

  • Size of mass affluent market in our geography
  • Growth rate and trends
  • Typical wallet share and revenue per client
  • Competitive intensity

 

Competitive Position

  • Current competitors and their positioning
  • Our strengths and weaknesses versus competitors
  • Potential for differentiation
  • Barriers to entry

 

Capabilities and Requirements

  • Advisor capacity and expertise
  • Technology and platform requirements
  • Product offerings needed
  • Compliance and regulatory requirements

 

Economics

  • Expected revenue per client
  • Cost to acquire and serve clients
  • Break-even timeline
  • Impact on overall bank profitability

 

Strategic Fit

  • Alignment with bank strategy
  • Cross-sell opportunities with banking clients
  • Impact on brand and positioning
  • Risk considerations

 

3. Analyze Quantitatively

 

Market Analysis

 

The mass affluent segment represents approximately $2 trillion in assets in our three-state region. This market is growing 6% annually as wealth accumulation continues. Average assets per client are $500,000, and typical advisory fees are 1% of assets, generating $5,000 per client annually.

 

The market is competitive with national firms like Morgan Stanley and Merrill Lynch, regional players, and independent advisors all competing for these clients. However, national firms often focus on higher-net-worth clients, creating opportunity.

 

Competitive Position

 

First Regional has advantages serving mass affluent clients. We have an existing banking relationship with many potential wealth management clients. Our brand is strong in our home markets. We have 200 branches providing convenient access.

 

Our main weakness is advisor capacity. Our current advisors focus on high-net-worth clients. Serving mass affluent clients requires different expertise and likely different compensation structures.

 

Capabilities Assessment

 

We'll need to hire or retrain advisors to serve mass affluent clients. This segment expects more standardized solutions and digital tools compared to high-net-worth clients who want bespoke service.

 

Technology investment is required. Mass affluent clients expect robust digital platforms for account access, performance reporting, and potentially robo-advisory capabilities.

 

Our product shelf needs expansion. High-net-worth clients often invest in alternatives and structured products. Mass affluent clients need solid mutual fund and ETF offerings with competitive fees.

 

Economic Analysis

 

If we target 10,000 mass affluent clients with average assets of $500,000, that's $5 billion in AUM. At a 1% advisory fee, that's $50 million in revenue, doubling our wealth management revenue.

 

Cost to acquire clients is estimated at $2,000 per client, or $20 million total. Annual servicing costs of $2,000 per client add $20 million annually. This gives us $30 million in annual profit once we reach scale.

 

Break-even occurs in year two, assuming steady client acquisition over 24 months.

 

Strategic Fit

 

Expanding to mass affluent clients aligns with our relationship banking strategy. Many of our banking clients are mass affluent but aren't using our wealth management services.

Cross-sell potential is significant. Banking clients who also use wealth management have higher retention and deeper relationships.

 

The main risk is execution. If we provide poor service to mass affluent clients, it could damage our brand and hurt the high-net-worth business.

 

4. Deliver a Recommendation

 

I recommend First Regional expand into the mass affluent segment for three reasons:

 

  • First, the market opportunity is substantial. The mass affluent segment in our markets represents $2 trillion in assets growing 6% annually. Capturing even a small share generates significant fee income.

 

  • Second, we have competitive advantages. Our banking relationships, branch network, and regional brand position us well. National firms under-serve this segment, creating opportunity.

 

  • Third, the economics are attractive. We can double wealth management revenue while achieving a two-year payback on required investments. This expansion also generates cross-sell benefits that strengthen our banking relationships.

 

For next steps, I'd want to develop a detailed implementation plan addressing advisor hiring and training, technology requirements, and client acquisition strategy. I'd also want to pilot the offering in one state before full rollout to validate our assumptions.

 

How to Prepare for Financial Services Cases

 

Preparing for financial services cases requires both general case interview skills and financial services-specific knowledge. Here's how to prepare effectively.

 

Build Financial Services Knowledge

 

Start by learning how different types of financial institutions work. Read annual reports from major banks, insurers, and asset managers. These reports explain business models, competitive positioning, and strategic priorities.

 

Follow financial services news. Read The Wall Street Journal, Financial Times, or American Banker. Understanding current industry trends and challenges helps you speak intelligently about the industry.

 

Study key financial metrics. Make sure you understand ROE, net interest margin, loss ratios, expense ratios, and other common metrics. Know how to calculate them and what good versus bad looks like.

 

Learn about regulation. You don't need to be an expert, but understand major regulations like Dodd-Frank, Basel III capital requirements, and fiduciary standards for asset managers.

 

Practice Financial Services Cases

 

Do practice cases that focus specifically on financial services. General case practice helps with problem-solving skills, but financial services cases have unique elements that require targeted practice.

 

Use cases from consulting firm websites. Many firms publish sample financial services cases. McKinsey, BCG, and Bain all have financial services cases available.

 

Practice with case partners who know financial services. They'll catch when you miss important financial considerations that someone without industry knowledge might miss.

 

Do 10 to 15 financial services-specific cases before your interviews. This gives you enough repetition to feel comfortable with common themes and questions.

 

Master Case Interview Math

 

Financial services cases involve more quantitative work than typical cases. Practice doing calculations quickly and accurately.

 

Be comfortable calculating percentages, growth rates, and returns. Practice until this is second nature.

 

Work on financial modeling. You might need to build a simple income statement or analyze a balance sheet during your case.

 

Review how to estimate market sizes for financial services markets. This comes up frequently in financial services cases.

 

Your Next Step to a Consulting Offer


Ready to stop struggling and start landing consulting offers?

 

Enroll in my step-by-step case interview course:

 

  • Get interview-ready in 7 days, not 6–8 weeks

 

  • Create perfect frameworks in under 60 seconds

 

  • Build business acumen in 2 hours, not 2 years

 

  • Solve case math 2x faster with 80% fewer errors

 

  • Practice with 20 cases covering 95% of case types

 

Join 3,000+ candidates who've landed offers at McKinsey, BCG, Bain, and other top firms. 82% of my students land consulting offers.

👉 Enroll Now