Should Starling Bank prioritize adding new features or improving existing core functionalities?

Introduction

The trade-off question at hand is whether Starling Bank should prioritize adding new features or improving existing core functionalities. This scenario involves balancing innovation with stability, user acquisition with retention, and short-term gains with long-term sustainability. I'll approach this analysis by examining the current product landscape, evaluating potential impacts, and proposing a data-driven decision framework.

Step 1

Clarifying Questions (3 minutes)

• Based on Starling's position as a challenger bank, I'm thinking user growth might be a key priority. Could you share our current user acquisition and retention rates?

Why it matters: Helps determine if we should focus on attracting new users or retaining existing ones. Expected answer: Moderate growth, but retention could be improved. Impact on approach: Would lean towards improving core functionalities if retention is an issue.

• Considering the competitive fintech landscape, I'm assuming we have a roadmap of innovative features. Can you give me an overview of the top 3 new features we're considering?

Why it matters: Allows assessment of potential impact of new features vs. core improvements. Expected answer: New features like advanced budgeting tools, cryptocurrency integration, and AI-powered financial advice. Impact on approach: Would influence the trade-off based on the potential of these features to differentiate us in the market.

• Looking at our technical infrastructure, I'm wondering about our current system stability and scalability. What's our current uptime percentage and how often do we face performance issues?

Why it matters: Indicates whether core functionality improvements are urgently needed. Expected answer: 99.9% uptime, occasional performance issues during peak times. Impact on approach: If stability is an issue, would prioritize core functionality improvements.

• Regarding our team structure, I'm curious about our current resource allocation. What percentage of our engineering team is dedicated to new feature development vs. maintaining core functionalities?

Why it matters: Helps understand our current capacity and potential for reallocation. Expected answer: 60% new features, 40% core maintenance. Impact on approach: Would influence how quickly we could shift focus if needed.

• Considering market dynamics, I'm thinking about our competitive positioning. How do our core functionalities compare to our main competitors in terms of user satisfaction?

Why it matters: Indicates whether we need to catch up on core features or if we're in a position to innovate. Expected answer: Slightly behind in some core areas, but competitive overall. Impact on approach: Would lean towards improving core functionalities if we're lagging behind competitors.