Should OakNorth prioritize expanding our loan product range or improving the user experience of existing offerings?

Introduction

The key trade-off we're examining is whether OakNorth should prioritize expanding our loan product range or improving the user experience of existing offerings. This decision is critical for our growth strategy and customer satisfaction. I'll analyze this trade-off by considering our business context, user impact, technical feasibility, and resource allocation. My approach will involve clarifying the situation, identifying key metrics, designing experiments, and providing a data-driven recommendation.

Step 1

Clarifying Questions (3 minutes)

• Based on our recent market analysis, I'm thinking our current loan products might be underperforming in certain segments. Could you share insights on our market share across different loan categories?

Why it matters: Helps identify gaps in our product offering and potential growth areas Expected answer: We're strong in SME loans but lagging in personal and mortgage products Impact on approach: Would influence whether to focus on expanding into new categories or improving existing ones

• Considering our tech stack, I'm assuming we have a modular architecture. How flexible is our current system for adding new loan products versus optimizing existing ones?

Why it matters: Determines the technical feasibility and resource requirements for each option Expected answer: Modular system, but some legacy components for core loan processing Impact on approach: Might favor UX improvements if adding new products requires significant backend changes

• Looking at our user feedback, I'm guessing we've identified some pain points in the current user experience. What are the top 3 issues reported by our customers?

Why it matters: Helps prioritize UX improvements and assess their potential impact Expected answer: Slow application process, lack of transparency in loan status, complex documentation requirements Impact on approach: Would inform the focus areas for UX improvements and their potential ROI

• Regarding our team structure, I'm thinking we might have separate product teams for different loan categories. How are our product and engineering resources currently allocated?

Why it matters: Assesses our capacity to take on new product development versus UX improvements Expected answer: Teams are specialized by loan type, with a central UX team Impact on approach: Might favor expanding product range if we have underutilized teams in certain areas

• Considering our strategic roadmap, I'm curious about the timeline for this decision. Are we looking at immediate implementation or planning for the next fiscal year?

Why it matters: Influences the scope and depth of changes we can consider Expected answer: Planning for implementation in Q3 of next year Impact on approach: Allows for more comprehensive changes and thorough experimentation