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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 681 |
Essay's paper body
Yes, Reich should make the car loan to the niece at the rate the dealership was offering – prime plus 2.5%. While the niece is not in the relationship banking program and while she is rather young and has traditionally carried low balances on her checking and savings accounts, she does have a number of attractive qualities...
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First, she earned an MBA and presumably has high earning potential and could be a lucrative customer for the bank. Second, if she is given the rate she wants on the loan she will be much more likely to sign up for an RBC credit card, generating revenues for the bank. Finally, her aunt is an important customer of the bank...
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