Should Kuda Bank allocate resources to developing new investment products or enhance existing core banking features to improve daily user engagement?

Introduction

The trade-off we're examining today is whether Kuda Bank should allocate resources to developing new investment products or enhance existing core banking features to improve daily user engagement. This decision is crucial for Kuda's growth strategy and user retention efforts. I'll analyze this trade-off by considering the business context, user impact, technical feasibility, and resource allocation.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking Kuda Bank is a digital-first bank targeting younger, tech-savvy users. Could you confirm if this is accurate and if there are any specific market conditions or competitive pressures we should be aware of?

Why it matters: Helps tailor our strategy to the target audience and market dynamics. Expected answer: Confirmation of target demographic and insights on market competition. Impact on approach: Would influence feature prioritization and marketing strategy.

• Business Context: Based on the trade-off presented, I'm assuming Kuda's current revenue model relies heavily on core banking services. Is this correct, and how significant is the potential revenue from investment products?

Why it matters: Helps understand the financial implications of our decision. Expected answer: Breakdown of current revenue streams and projections for new products. Impact on approach: Would influence resource allocation between core features and new products.

• User Impact: I'm thinking there might be different user segments with varying needs. Can you share any data on user engagement patterns or feedback regarding investment features vs. core banking?

Why it matters: Ensures we're addressing actual user needs and preferences. Expected answer: Insights on user behavior and expressed desires for new features. Impact on approach: Would help prioritize features that align with user demands.

• Technical: Considering the potential complexity of investment products, I'm curious about our current technical capabilities. Do we have the infrastructure to support new investment features, or would this require significant development?

Why it matters: Assesses the feasibility and timeline for implementing new features. Expected answer: Overview of current technical capabilities and potential challenges. Impact on approach: Would influence the timeline and resource allocation for development.

• Resource: Given that we're considering two different directions, I'm wondering about our current team structure. Do we have dedicated teams for core banking and investment products, or would this require reallocation of existing resources?

Why it matters: Helps understand the organizational impact of our decision. Expected answer: Insight into team structure and available resources. Impact on approach: Would influence how we plan the development and rollout of new features.