How can we explain the 25% decline in new sign-ups for Judo Bank's term deposit accounts compared to the same period last year?

Introduction

The 25% decline in new sign-ups for Judo Bank's term deposit accounts compared to the same period last year is a significant issue that requires thorough investigation. To address this problem, I'll employ a systematic approach to identify, validate, and address the root cause while considering both immediate and long-term implications.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonal factors at play. Has this decline been consistent across all months, or is it more pronounced in certain periods?

Why it matters: Seasonal patterns could indicate external factors rather than internal issues. Expected answer: The decline is relatively consistent across months. Impact on approach: If seasonal, we'd focus on year-over-year comparisons and market trends.

• Considering user segments, I'm curious about the demographics. Has the decline been uniform across all age groups and income levels, or are certain segments more affected?

Why it matters: Identifying affected segments helps pinpoint targeted solutions. Expected answer: The decline is more pronounced among younger, tech-savvy users. Impact on approach: We'd investigate digital experience and competitive offerings for this demographic.

• Thinking about recent changes, have there been any significant updates to the term deposit product or the sign-up process in the past year?

Why it matters: Product changes could directly impact user acquisition. Expected answer: Minor updates to the online application form were implemented. Impact on approach: We'd scrutinize these changes and their potential impact on user experience.

• Regarding market conditions, has there been any notable shift in interest rates or competitive offerings from other banks?

Why it matters: External market factors could be driving customer behavior. Expected answer: Interest rates have remained relatively stable, but competitors have launched aggressive marketing campaigns. Impact on approach: We'd analyze our value proposition and marketing strategy in comparison to competitors.