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Product Overview

In early 1990, Chuck Sulerzyski, head of Retail Banking for Banc One's Ohio affiliate, was concerned about profitability and future prospects in the indirect installment-loan business in auto lending. Indirect loans were those in which the consumer applied for credit through an intermediary, in this case an automobile dealership. Sulerzyski and his people had been asked to work with a consulting team from McKinsey & Company, led by Tony Goland, to make some decisions about future strategy in the business. This project would be part of a larger strategic initiative in Retail Banking in which McKinsey was already involved. These decisions would need to be made within a context of both significant competitive activity in the auto-lending business (see Exhibits) and the distinctive internal environment of the bank itself.