First National Bank's Golden Opportunity

Executives at First National Bank in South Africa are considering whether to launch a potentially exciting, but rather unorthodox, new savings product. Instead of paying interest, this product gives depositors the chance to win large cash prizes each month. Michael Jordan, CEO of the bank's Consumer Solutions Division, must decide whether to approve the product, weighing the potential benefits against large upfront investment, uncertain market demand, and the complication that the product might face legal challenges.
Collection: HBSP (USA)
Ref: HBS-208072-E
Format: PDF
Number of pages: 20
Publication Date: Oct 19, 2007
Language: English
Review date: Mar 13, 2008

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Description

Executives at First National Bank in South Africa are considering whether to launch a potentially exciting, but rather unorthodox, new savings product. Instead of paying interest, this product gives depositors the chance to win large cash prizes each month. Michael Jordan, CEO of the bank's Consumer Solutions Division, must decide whether to approve the product, weighing the potential benefits against large upfront investment, uncertain market demand, and the complication that the product might face legal challenges.
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Year: 2003
Geographic Setting: South Africa
Industry Setting: Banking; Finance & insurance

First National Bank's Golden Opportunity

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"First National Bank's Golden Opportunity"