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Product Management Root Cause Analysis Question: Investigating decline in mutual fund investment value
Image of author vinay

Vinay

Updated Nov 19, 2024

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Asked at Pluang

15 mins

Why has the average transaction value for Pluang's mutual fund investments declined by 25% over the past quarter?

Data Analysis Problem Solving Strategic Thinking Fintech Investment Management Personal Finance
Data Analysis Product Metrics Fintech Root Cause Analysis User Behavior

Introduction

The decline in average transaction value for Pluang's mutual fund investments by 25% over the past quarter is a significant issue that requires thorough analysis. To address this problem, I'll employ a systematic approach to identify, validate, and resolve the root cause while considering both immediate and long-term implications.

Framework overview

This analysis follows a structured approach covering issue identification, hypothesis generation, validation, and solution development.

Step 1

Clarifying Questions (3 minutes)

  • Looking at the timing, I'm thinking there might be seasonal factors at play. Have we seen similar declines in previous quarters or is this unprecedented?

Why it matters: Helps distinguish between cyclical patterns and unique issues. Expected answer: No similar declines in previous quarters. Impact on approach: If cyclical, we'd focus on seasonal strategies; if unique, we'd investigate recent changes.

  • Considering user segments, I'm curious if this decline is uniform across all investor types. Are we seeing differences between new and experienced investors?

Why it matters: Identifies whether the issue is systemic or segment-specific. Expected answer: Decline more pronounced among newer investors. Impact on approach: If segment-specific, we'd tailor solutions to that group; if uniform, we'd look at platform-wide factors.

  • Thinking about recent changes, have there been any significant updates to the platform or investment options in the past quarter?

Why it matters: Helps isolate potential internal causes for the decline. Expected answer: A new user interface was implemented last month. Impact on approach: If recent changes correlate with the decline, we'd focus on those specific updates.

  • Considering external factors, has there been any notable shift in the broader financial market or regulatory environment?

Why it matters: Determines if the issue is internal or influenced by external forces. Expected answer: Some market volatility, but no major shifts. Impact on approach: If external factors are significant, we'd need to adapt our strategy to market conditions.

  • Regarding data integrity, can we confirm that the method for calculating average transaction value has remained consistent?

Why it matters: Ensures the observed decline is real and not a result of measurement changes. Expected answer: Calculation method has not changed. Impact on approach: If calculation methods changed, we'd need to reassess the data before proceeding with other analyses.

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