For bKash's international remittance service, should we prioritize lower fees to attract more users or maintain higher margins to sustain the business model?

Introduction

The trade-off we're examining today is whether bKash's international remittance service should prioritize lower fees to attract more users or maintain higher margins to sustain the business model. This scenario involves balancing user acquisition and growth against financial sustainability for a critical financial service. I'll analyze this trade-off by considering the product context, stakeholder impacts, key metrics, and potential experimental approaches.

Step 1

Clarifying Questions (3 minutes)

• Based on the competitive landscape, I'm thinking fee structures might vary significantly. Could you provide insights into how our fees compare to major competitors in key remittance corridors?

Why it matters: Helps assess our pricing position and potential for differentiation Expected answer: We're mid-range, with room to adjust Impact on approach: Would influence the aggressiveness of fee reduction strategies

• Considering user behavior, I'm assuming most remittances are recurring. What's the average frequency and amount of transactions per user?

Why it matters: Informs the potential lifetime value of users and impact of fee changes Expected answer: Monthly transactions, average $300-500 Impact on approach: Would help calculate the trade-off between user acquisition and revenue per transaction

• Looking at our tech infrastructure, I'm curious about our cost structure. What's our current cost per transaction, and how scalable is our system?

Why it matters: Determines our margin flexibility and ability to support increased volume Expected answer: Costs are relatively fixed, with room for economies of scale Impact on approach: Would influence how aggressively we can lower fees while maintaining profitability

• Regarding our strategic priorities, how does the remittance service fit into bKash's overall growth strategy and revenue mix?

Why it matters: Helps align the decision with broader company goals Expected answer: Key growth driver, currently 20% of revenue Impact on approach: Would inform the balance between short-term profitability and long-term market share

• Considering market dynamics, what's the projected growth rate of the international remittance market in our key corridors?

Why it matters: Indicates the potential size of the opportunity and competitive intensity Expected answer: 10-15% annual growth expected Impact on approach: Would influence how aggressively we need to capture market share