Should Judo Bank prioritize expanding its business lending products or focus on improving its existing term deposit offerings to attract more retail customers?

Introduction

The trade-off we're examining today is whether Judo Bank should prioritize expanding its business lending products or focus on improving its existing term deposit offerings to attract more retail customers. This decision involves balancing the potential for growth in the business lending sector against the opportunity to strengthen our retail customer base through enhanced deposit products. I'll analyze this trade-off by considering market dynamics, customer needs, and Judo Bank's strategic positioning.

Step 1

Clarifying Questions (3 minutes)

• Business Context: I'm thinking Judo Bank might be facing increased competition in the business lending space. Could you share insights on our current market share and growth trends in business lending versus retail deposits?

Why it matters: Helps assess the potential impact of focusing on either area Expected answer: Business lending growing faster but more competitive Impact on approach: Would influence resource allocation and risk assessment

• User Impact: Based on customer feedback, I suspect our term deposit offerings might be lagging behind competitors. Can you provide data on customer satisfaction and retention rates for our retail deposit products?

Why it matters: Indicates the urgency of improving retail offerings Expected answer: Lower satisfaction scores compared to industry benchmarks Impact on approach: Would prioritize user experience enhancements for deposits

• Technical Feasibility: Considering our current tech stack, I'm curious about the complexity of expanding business lending products versus improving term deposits. What's our engineering team's assessment of the technical effort required for each option?

Why it matters: Determines the feasibility and timeline for each initiative Expected answer: Business lending expansion more complex but higher long-term value Impact on approach: Would influence project planning and resource allocation

• Resource Allocation: Given our current team structure, I'm wondering about our capacity to pursue both initiatives simultaneously. Can you provide an overview of our available resources and any potential constraints?

Why it matters: Helps determine if we need to choose one path or can pursue both Expected answer: Limited resources, need to prioritize one initiative Impact on approach: Would focus strategy on maximizing impact with available resources

• Timeline and Urgency: Considering market conditions, I'm thinking there might be a time-sensitive opportunity in one of these areas. Are there any upcoming regulatory changes or market shifts that could impact the timing of our decision?

Why it matters: Influences the urgency and potential impact of each option Expected answer: Upcoming fintech regulations could affect business lending Impact on approach: Would factor timing considerations into the decision-making process