System Design · Capital One · Medium
A credit-card issuer is deciding which customer segment should be the first to receive a new cashback feature. For each segment, the following inputs are available: avg_monthly_spend_per_active_card avg_outstanding_balance_OS interchange_rate_pct_of_spend APR cost_of_funds net_interest_margin = APR - cost_of_funds monthly_opex_per_account annualized_loss_rate_pct_of_OS proposed_cashback_rate_pct, denoted as $$r\%$$ For each segment, compute line-item economics using:…
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