Should Deposit Solutions prioritize expanding its partner bank network to offer more diverse deposit products, or focus on enhancing the user experience of its existing savings marketplace platform?

Introduction

The trade-off question at hand is whether Deposit Solutions should prioritize expanding its partner bank network to offer more diverse deposit products or focus on enhancing the user experience of its existing savings marketplace platform. This scenario involves balancing growth through product diversity against improving the core user experience. I'll analyze this trade-off by examining the current product landscape, potential impacts, key metrics, and experimental approaches to inform a strategic recommendation.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking about the current market position of Deposit Solutions. Could you provide more insight into our market share and primary competitors in the savings marketplace space?

Why it matters: Helps assess the urgency of expansion vs. improvement Expected answer: Moderate market share with 2-3 strong competitors Impact on approach: Would influence whether to focus on differentiation or market expansion

• Business Context: Based on our business model, I assume we generate revenue through fees from partner banks. Is this correct, and are there any other significant revenue streams?

Why it matters: Clarifies the financial implications of expanding the partner network Expected answer: Primarily fee-based model with partner banks Impact on approach: Would affect the prioritization of network expansion vs. UX improvements

• User Impact: I'm curious about our user demographics. Are we primarily serving retail investors, or do we have a significant institutional client base as well?

Why it matters: Different user segments may have varying needs and priorities Expected answer: Mix of retail and institutional clients, with a growing retail segment Impact on approach: Would influence the focus of UX enhancements and product diversity

• Technical: Regarding our current platform, what's the scalability of our existing infrastructure to support an expanded partner network?

Why it matters: Assesses the technical feasibility and potential costs of expansion Expected answer: Moderately scalable with some investment needed Impact on approach: Would affect the timeline and resource allocation for expansion

• Resource: Can you give me an idea of our current team capacity and any budget constraints for either expansion or UX improvements?

Why it matters: Helps determine the feasibility of pursuing both options simultaneously Expected answer: Limited team capacity with moderate budget flexibility Impact on approach: Would influence the prioritization and phasing of initiatives