Case | HBS Case Collection | October 2007 (Revised March 2008)

First National Bank's Golden Opportunity

by Shawn A. Cole, Peter Tufano, Daniel Schneider and Daryl Collins


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.

Keywords: Decision Choices and Conditions; Banks and Banking; Investment; Innovation and Invention; Product Launch; Demand and Consumers; South Africa;


Cole, Shawn A., Peter Tufano, Daniel Schneider, and Daryl Collins. "First National Bank's Golden Opportunity." Harvard Business School Case 208-072, October 2007. (Revised March 2008.)