Question 14
PePhone is a FinTech firm that processes payments. Following are sources of revenue for the company – 3.5% of transaction amount as transaction fee from merchant for all types of transactions (credit and debit), 18% p.a. interest on credit transactions and incurs a loss of credit if not paid back. Calculate the overall profit for the company based on the below table – (Assume payback of credit in a year)
Note: Declined transactions will not get credit but customers will complete the payment through PePhone using their bank details.
| Cust ID | Date of Application | Cust Segment | Application Credit Score | Application Amount | Approved_vs_Declined | Decline Reason | Paid Back or Defaulted |
|---|---|---|---|---|---|---|---|
| 17289 | 26/03/21 | Low | 588 | 168 | Approved | Paid Back | |
| 17290 | 17/02/21 | Mid | 635 | 109 | Approved | Defaulted | |
| 17291 | 23/02/21 | High | 455 | 183 | Declined | System Issue | NA |
| 17292 | 20/02/21 | Mid | 484 | 334 | Declined | Credit Risk | NA |
| 17293 | 05/02/21 | Mid | 637 | 102 | Approved | Defaulted | |
| 17294 | 11/01/21 | Mid | 559 | 499 | Declined | Credit Risk | NA |
–167.50
– 211.0
– 197.74
– 162.18