Should Home Credit prioritize expanding its point-of-sale lending partnerships or focus on improving the user experience of its existing mobile app?

Introduction

The trade-off question at hand is whether Home Credit should prioritize expanding its point-of-sale lending partnerships or focus on improving the user experience of its existing mobile app. This scenario involves balancing growth through partnerships versus enhancing the core product experience. I'll analyze this trade-off by examining the business context, user impact, technical considerations, and resource allocation.

Step 1

Clarifying Questions (3 minutes)

• Based on the current market conditions, I'm thinking our competitive landscape might be shifting. Could you provide an overview of our main competitors and their recent moves in point-of-sale lending?

Why it matters: Helps assess the urgency of partnership expansion Expected answer: Increased competition in POS lending Impact on approach: May prioritize partnerships if competition is intensifying

• Considering our user acquisition strategy, I'm assuming the mobile app plays a crucial role. What percentage of our new customers come through the app versus other channels?

Why it matters: Determines the relative importance of app improvements Expected answer: Significant portion (e.g., 40-50%) of new users via app Impact on approach: Higher percentage would favor app improvements

• Looking at our technical infrastructure, I'm wondering about our API readiness. How scalable is our current system for integrating with new point-of-sale partners?

Why it matters: Assesses feasibility and speed of partnership expansion Expected answer: Moderately scalable, some work needed Impact on approach: Less scalable system might delay partnership focus

• Regarding our product team structure, I'm curious about our capacity for parallel initiatives. Do we have separate teams for partnerships and app development, or would these efforts compete for the same resources?

Why it matters: Determines if we can pursue both strategies simultaneously Expected answer: Some overlap in resources Impact on approach: Significant overlap would necessitate choosing one focus

• Considering our financial targets, I'm thinking about the revenue impact timeline. What's our expectation for how quickly each initiative (partnerships vs. app improvements) would contribute to top-line growth?

Why it matters: Aligns strategy with short-term vs. long-term financial goals Expected answer: Partnerships faster revenue, app improvements longer-term Impact on approach: Short-term revenue pressure might favor partnerships