Should Kredivo invest in developing new financial products or enhance its core lending platform's features and user experience?

Introduction

The trade-off question at hand is whether Kredivo should invest in developing new financial products or enhance its core lending platform's features and user experience. This scenario involves balancing innovation with optimization, considering both short-term gains and long-term strategic positioning. I'll analyze this trade-off by examining the current product landscape, potential impacts, key metrics, and experimental approaches to inform a data-driven recommendation.

Step 1

Clarifying Questions (3 minutes)

• Context: Based on Kredivo's position as a lending platform, I'm thinking about market saturation. Could you provide insights into our current market share and the competitive landscape?

Why it matters: Helps determine if growth should come from new products or market penetration Expected answer: Moderate market share with room for growth in core lending Impact on approach: Would influence whether to focus on enhancing core features or diversifying

• Business Context: Considering our revenue model, I'm assuming it's primarily based on interest and fees from lending. How significant is the contribution from other financial products, if any?

Why it matters: Indicates the potential impact of new product development Expected answer: Majority revenue from core lending, minimal from other products Impact on approach: Would guide resource allocation between core platform and new offerings

• User Impact: Looking at user behavior, I'm curious about our customer retention rates and lifetime value. Can you share insights on these metrics and how they've trended recently?

Why it matters: Helps identify if user experience improvements or new products are more critical Expected answer: Good retention but room for improvement in lifetime value Impact on approach: Would influence focus on enhancing existing user experience vs. expanding product range

• Technical: Considering our current tech stack, I'm wondering about its flexibility. How easily can we integrate new financial products into our existing platform?

Why it matters: Affects feasibility and timeline of new product development Expected answer: Moderately flexible, but some challenges in integration Impact on approach: Would impact decision on whether to prioritize platform enhancements or new product development

• Resource: Thinking about our team structure, I'm curious about our current capacity. Do we have dedicated teams for new product development and core platform enhancement, or would this require resource reallocation?

Why it matters: Influences the feasibility of pursuing both strategies simultaneously Expected answer: Limited dedicated resources, would require reallocation Impact on approach: Would affect the timeline and scope of potential initiatives