Should Revolut prioritize adding more cryptocurrencies or improving fiat currency exchange features?

Introduction

The trade-off question at hand is whether Revolut should prioritize adding more cryptocurrencies or improving fiat currency exchange features. This scenario involves balancing the expansion of a potentially lucrative but volatile market with enhancing core functionality that serves a broader user base. I'll approach this analysis by examining the business context, user impact, technical considerations, and strategic implications of each option.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking Revolut's current crypto offering might be limited compared to competitors. Could you share how our crypto feature compares to other fintech players in terms of available currencies and user adoption?

Why it matters: Helps assess the competitive landscape and potential market opportunity. Expected answer: Revolut offers fewer cryptocurrencies than dedicated crypto exchanges but more than traditional banks. Impact on approach: If we're significantly behind, it might justify prioritizing crypto expansion.

• Business Context: Based on Revolut's revenue model, I assume crypto trading contributes to our transaction fees. What percentage of our revenue currently comes from crypto vs. fiat currency exchanges?

Why it matters: Helps understand the financial impact of each option. Expected answer: Crypto contributes a smaller but growing percentage compared to fiat exchanges. Impact on approach: If crypto revenue is growing rapidly, it could support prioritizing that feature.

• User Impact: I'm curious about user engagement across these features. What percentage of our active users engage with crypto vs. fiat exchange features on a monthly basis?

Why it matters: Indicates which feature might have a broader impact on user satisfaction and retention. Expected answer: A larger percentage uses fiat exchange, but crypto users might be more engaged. Impact on approach: Could influence whether we focus on improving core functionality or expanding niche features.

• Technical: Considering the complexity of integrating new cryptocurrencies, how does our current infrastructure support scaling in this area compared to enhancing fiat exchange features?

Why it matters: Assesses the technical feasibility and resource requirements for each option. Expected answer: Adding cryptocurrencies requires more complex integrations and security measures. Impact on approach: Might influence timeline and resource allocation for each option.

• Timeline: Given market volatility and competitive pressures, how urgent is the need to make a decision on this trade-off?

Why it matters: Helps prioritize the decision within the broader product roadmap. Expected answer: Decision needed within the next quarter to inform annual planning. Impact on approach: Could affect the depth of analysis and experimentation we can conduct.