Financial access: is an agent network sustainable?
A fictional financial-services provider proposes a small agent network for underserved communities. Evaluate commercial sustainability while recognising that access and customer protection also matter.
Original Finance Circle distribution scenario. All agents, prices and costs are fictional. McKinsey’s Diconsa case is a source of related financial-inclusion context.
Independent Finance Circle learning material. The source organisation does not sponsor, author or endorse this exercise.
Clarify. Structure. Calculate. Defend.
Take 2 minutes to clarify the decision and definitions, 3 minutes to structure the analysis, then work the exhibits. Finish with a concise recommendation and answer a follow-up. The time is a suggested practice format, not an employer requirement.
Clarify before solving
What are the data basis and reporting boundary?
Original Finance Circle distribution scenario. All agents, prices and costs are fictional. McKinsey’s Diconsa case is a source of related financial-inclusion context.
Which assumptions can I use without requesting more data?
CAD. There are 20 agents. Each handles 400 transactions per month in the base case. Provider net transaction revenue is 1.50; agent commission is 0.60; other variable processing cost is 0.20 per transaction.
What decision am I expected to support?
At 600 monthly transactions per agent, calculate monthly operating result and simple setup payback. Assume that monthly result is cash available to recover setup.
Build your structure
- Agent activity and net transaction revenue
- Variable contribution and central support
- Network break-even and setup recovery
- Access, reliability, controls and customer outcomes
Use the branches that matter to this decision. A memorised framework is less useful than explaining why each analysis could change your recommendation.
Everything you need to work the case.
Assumptions & boundaries
- CAD. There are 20 agents. Each handles 400 transactions per month in the base case.
- Provider net transaction revenue is 1.50; agent commission is 0.60; other variable processing cost is 0.20 per transaction.
- Central support costs 6,000 per month. Setup costs 24,000 at time zero. No tax or discounting.
Network model
| Driver | Base |
|---|---|
| Agents | 20 |
| Transactions / agent / month | 400 |
| Net revenue / transaction | $1.50 |
| Agent commission / transaction | $0.60 |
| Other variable cost / transaction | $0.20 |
| Monthly central support | $6,000 |
| Initial setup | $24,000 |
Choose the responsibility. Solve the decision.
Each level uses the exhibits above and asks a different question. Your entries stay in this open page only; copy your work before leaving.
Build the monthly model.
Calculate total transactions, unit contribution and monthly operating result.
Is transaction revenue the same as money customers deposit?
Numerical checks compare your arithmetic with the case model. Written recommendations are self-practice and are not automatically graded.
03 · Reveal worked solution & decision guide
Expected numerical answers
- Monthly transactions
- 8,000 transactions
- Contribution / transaction
- 0.7 CAD
- Monthly operating result
- -400 CAD
Work through the calculation
- Transactions = 20 × 400 = 8,000. Contribution = 1.50 − 0.60 − 0.20 = 0.70.
- Result = 8,000 × 0.70 − 6,000 = −400.
A strong concise response
My calculation shows that monthly transactions is 8,000 transactions; contribution / transaction is 0.7 CAD; monthly operating result is -400 CAD. The base network does not cover recurring central support costs.
Answer the interviewer follow-up
Is transaction revenue the same as money customers deposit?
No. The case uses the provider’s net transaction fee. Customer balances and payment flows are not automatically provider revenue.
Assessment rubric · 20 points
For self-review or mentor discussion. This rubric is not an automated written-answer grade or an employer scoring system.
Correctly derives all 3 numerical results for this level, keeps signs and units consistent, and explains the method.
Explains the objective: Build the monthly model. States the supplied scope, timing and metric definitions before calculating.
The base network does not cover recurring central support costs. Addresses the interviewer follow-up without contradicting the facts.
Leads with a clear conclusion, distinguishes facts from assumptions, and identifies the next evidence needed. Does not claim the source company asked or endorsed this question.
Use full precision until the final rounding. Alternative written recommendations may be reasonable if they respect the facts and explain assumptions. This is Finance Circle’s guide, not an official source-company answer.
Source & attribution
The references below identify the public reporting, hiring guidance, research or mock-interview material used for context. Finance Circle wrote the exercise and its answers. Illustrative figures are explicitly identified; they are not company results or findings.
Public context; Finance Circle’s scenario inputs are illustrative.
Source reviewed 30 October 2026. No external page is needed to answer this exercise. Company names and logos identify sources only. All trademarks belong to their respective owners.