Kuda Bank Teen Debit Card: Solving Parent-Teen Financial Challenges in Nigeria.

Introduction

Background

The Kuda Bank Teen Debit Card Product is the focus of this case study which has been developed as part of the EntryLevel Product Management Level 1 course. This individual project required the selection of a single product from four hypothetical project briefs. I chose the Kuda Bank Teen Debit Card Product due to its potential to solve a problem faced by parents and teenagers in Nigeria.

Product Overview

The product offers teenagers and minors aged between 11–18 prepaid debit cards which can be used for both online and offline payments without the need to set up a bank account. The debit card will be managed by the teen's parents.

Process

I started by defining the problem statement, breaking it down, and identifying a list of assumptions to test, then I prioritized the assumptions using a Risk-Importance graph.

I carried out market research by studying industry reports and google trends data to determine market dynamics, market size and competitors, then I gathered qualitative data to validate the problem by interviewing 7 teenagers and 5 parents. The information was used to map out the User Journey. I also developed MVP strategy, user stories and features for the product. The features were prioritized using the MoSCoW Framework, the T-shirt framework was used to estimate the effort required to develop the features, and an Effort-Value map was used to determine our quick wins and big bets which will be the features in the MVP.

Customer Problem

Identifying Assumptions

1. Teenagers want to make online and offline purchases without having to set up a bank account.
2. Parents will trust Kuda Bank to manage and monitor their teenager's spending.
3. Teenagers will find the prepaid debit card convenient to use.
4. Parents will find the prepaid debit card cost-effective compared to traditional bank accounts or credit cards.
5. There is a market demand for a prepaid debit card specifically designed for teenagers.

Product Assumptions Map

Using a risk importance graph, we ranked each assumption based on risk (1-10) and importance (1-10). The top right quadrant of the risk-importance graph contains the assumptions that are critical for success and yet have the least amount of information. Therefore, we focused on validating the assumptions that parents will trust Kuda Bank to manage and monitor their teenager's spending and there is a market demand for a prepaid debit card specifically designed for teenagers.

Market Research Data

Target Market

Kuda Bank Teen Debit Card Product makes it easy for Parents to request prepaid debit cards for their teenagers, enabling them to carry out online and offline transactions and manage their teenager's spending habits.

The product targets two customer segments, parents who want to open Kuda accounts for their teens, and teenagers who need prepaid debit cards for online and offline payments. The teen demographic consists of minors and teenagers between the ages of 11 - 18, while the adult demographic consists of adults between the ages of 35-45. Nigeria has a large population of people within those age groups, so there is a large potential market to serve.

Kuda Bank Teen app provides tools to help users track their spending habits, save money, and perform multiple transfers without incurring excess charges like traditional banks.?

Specific Target Market

Demographic:

Minors and teenagers between the ages of 11 - 18, adults between the ages of 35-45 years.

Geographic:

Low and medium-income earners, City dwellers.

Psychographic:

People who spend time on their smartphones are tech-savvy, budget conscious.

Behavioral:

People who prefer the convenience of performing transactions on their devices, want to save money and time.

Market Research

Market Growth

The Fintech sector has experienced unprecedented growth within the last few years. According to the Fintech Times report 2021, Nigeria has between 210 and 250 fintech companies. Frost and Sullivan report that Nigeria’s fintech revenue is expected to reach $543.3 million in 2022 from $153.1 million in 2017.

Nigeria is Africa’s largest economy with a population of about 200 million people, and 20 million living in Lagos alone, this presents so many opportunities for the fintech sector to grow. Furthermore, the combination of a youthful population, increased smartphone penetration, and regulatory drive to increase financial inclusion and cashless payments are the perfect recipe for the fintech sector to thrive.

Nairametrics ranks Kuda bank as the 7th most valuable bank in Nigeria as reported in 2021, this means the digital-only bank is valued much higher than some traditional banks.

Competitors

Piggyvest, Cowrywise, Alat Bank, Opay, Vbank.

Customer Interview

For this phase of the project I interviewed 7 teenagers and 5 parents in order to conduct my qualitative research and? gather feedback.? Both customer segments were asked the interview questions listed below.?

Interview Questions for Parents:

1. What are some of the challenges you face when it comes to managing your child's finances?
2. How do you currently monitor and control your child's spending?
3. What are your thoughts on allowing your child to have access to a prepaid debit card?
4. What features would you like to see in a prepaid debit card designed for teenagers?
5. How would you feel about having control over your child's debit card and being able to set limits on their spending?
6. How important is it for you to be able to track your child's spending and see where their money is going?
7. Have you had any previous experience with prepaid debit cards? If so, what was your experience like?
8. What concerns, if any, do you have about your child using a prepaid debit card?
9. Would you consider using a prepaid debit card for your child in place of cash or other payment methods?
10. Are there any other features or services that you would like to see included with a prepaid debit card designed for teenagers?

Interview Questions for Teenagers:

1. How do you currently handle your money and spending?
2. What are your thoughts on having a prepaid debit card that you can use for both online and offline purchases?
3. How would you feel about having your parents monitor and control your spending on the card?
4. What features would you like to see included with a prepaid debit card designed for teenagers?
5. How important is it for you to be able to track your spending and see where your money is going?
6. What concerns, if any, do you have about using a prepaid debit card?
7. Have you had any previous experience with prepaid debit cards? If so, what was your experience like?
8. Would you feel more independent with your own prepaid debit card?
9. How likely would you be to use a prepaid debit card for your spending needs?
10. Are there any other features or services that you would like to see included with a prepaid debit card designed for teenagers?

Key insights from the interviews are summarized below:

• The interviews with parents and teenagers validated the Kuda Bank Teen Debit Card Product assumptions.?
• Parents agreed that managing their child's finances is challenging, especially when it comes to monitoring and controlling their spending.?
• Parents expressed a strong desire for a prepaid debit card with features that will allow them to set spending limits and restrictions on the card, track their child's spending, and block certain merchants.
• The teenagers were generally open to the idea of using a prepaid debit card for both online and offline transactions.?
• The teenagers also expressed a desire for features that would allow them to track their spending.?
• Some teenagers felt concerned about their parents monitoring their spending habits and merchants they visit, but some felt that having their parents monitor and control their spending on the card would be acceptable as long as they had some degree of independence and control over their finances.

User pain points:

• Lack of financial education: Many teenager do not have solid understanding of basic financial concepts like budgeting, saving, and investing.
• Limited access to banking services: Most teenagers cannot open a bank account until they turn 18, which limits their ability to save money and manage their finances.
• Dependence on parents: Teenagers felt frustrated or embarrassed when they had to ask their parents for money for online payment.
• Online safety concerns: Both parents and teenagers were worried about the safety and security of using a prepaid debit card to make purchases online.

User Journey Map

I developed a user journey map that highlighted the different stages of parent's and teen's interaction with Kuda bank's teen debit card and app, from initial awareness and research to ongoing use of the product. It emphasizes the importance of parental control and monitoring, while also providing teenagers with a convenient and safe way to make online and offline purchases without the need for a full bank account.

MVP Strategy (Assumptions, Success Criteria and Prototype Idea)

User Validation Strategy for Kuda Bank Teen Debit Card MVP:

Key Assumptions:

• There is demand for a teen debit card solution in the market
• Teens are interested in a digital-first banking experience
• Parents are willing to trust Kuda Bank with their teens' finances
• Teens are able to use the Kuda Bank app and card with ease

Success Criteria:

• 50 signups for the MVP within the first month
• Positive feedback from 80% of users who test the MVP
• 25% of users who sign up for the MVP use it as their primary method of payment for at least 3 months
• No major issues or complaints reported during the testing period

Prototype:

A functional MVP with the following features will be built for the product:

• A Kuda Bank teen debit card
• A mobile app for teens and parents to monitor and manage transactions
• Push notifications for all transactions made using the card
• Automatic spending categorization and budget tracking

I chose this prototype because it aligns with the needs and expectations of the target audience and offers enough functionality to gather meaningful feedback and usage data.

Finding Users:

I will employ a few tactics to find users from the target market to test the prototype:

• Utilize social media platforms like Instagram and TikTok to reach teens directly
• Run targeted ads on social media and search engines to attract interested users
• Offer incentives like cashback or freebies to incentivize sign-ups and usage

User stories for MVP Features

Features:

• Real-time spending notifications to my phone
• In-app spending analytics and budget tracking tools

User story

As a teenage customer I want to be able to track my spending easily with my Kuda bank debit card So that I can manage my finances better

Acceptance criteria

Given that I am a teenage customer with a Kuda bank debit card,

When I use the Kuda bank app or website to track my spending,

Then I should be able to see a clear breakdown of my transactions categorized by merchant and date.

Given that I am a teenage customer with a Kuda bank debit card,

When I view my transaction history,

Then I should be able to see the available balance on my account and the amount spent in each transaction.

Features:

• Set spending limits and restrictions on the card
• Ability to block or restrict certain merchants or categories of spending

User story

As a parent I want to be able to control my child's spending with their Kuda bank debit card So that I can teach them responsible financial habits

Acceptance criteria

Given that I am a parent and have a Kuda bank account and debit card for my child,

When I access the Kuda app and select my child's account,

Then I should be able to:

• Set spending limits and restrictions on the card.
• Block or unblock the card as needed.
• Receive real-time notifications of all transactions made with the card.
• View transaction history and spending reports for my child's account.
• Set up automatic allowances or transfers to my child's account.
• Set up savings goals for my child and track their progress towards them.

Features:

• Ability to generate virtual card numbers for online transactions
• Integration with popular online retailers and marketplaces

User story

As a teenage customer I want to be able to use my Kuda bank debit card for online purchases So that I can shop conveniently and safely

Acceptance criteria

Given that the teenage customer has an active Kuda bank account and a Kuda bank debit card,

When the customer initiates an online purchase,

Then the customer should be able to generate a virtual card number associated with their Kuda bank debit card for that transaction.

Given that the teenage customer has an active Kuda bank account and a Kuda bank debit card,

When the customer initiates an online purchase from a popular online retailer or marketplace,

Then the customer should be able to use their Kuda bank debit card for the transaction without any issues or errors.

Features:

• Real-time transaction alerts for unusual spending patterns or high-value purchases
• In-app fraud protection and dispute resolution tools

User story

As a parent I want to be able to monitor my child's spending and receive alerts for suspicious activity with their Kuda bank debit card So that I can ensure their safety and security.

Acceptance criteria

Given that I am a parent with a Kuda bank debit card for my child

When I enable transaction alerts in the Kuda app

Then I expect to receive real-time alerts for any unusual spending patterns or high-value purchases made using my child's card.

Given that there is suspicious activity detected on my child's Kuda bank debit card

When I report the activity using the in-app fraud protection tools

Then I expect the dispute resolution process to be initiated promptly.

Features:

• Spending Analysis: Provide a dashboard that displays the user's spending trends and patterns, so that they can easily identify areas where they can cut back on expenses.
• Saving Tips: Offer personalized tips and recommendations on how to save money, based on the user's spending habits and goal

User story

As a teenage user I want to be able to monitor my spending habits and receive tips on how to save money So that I can be financially responsible and achieve my goals.

Acceptance criteria

Given that the teenage user wants to manage their finances,

When they access the Spending Analysis dashboard,

Then they should be able to view their spending trends and patterns presented in a clear and concise format, such as graphs and charts.

Given that the user is a teenager who wants to manage their finances,

When they access the Saving Tips feature,

Then they should receive personalized tips and recommendations on how to save money that are based on their spending habits and goals

MoSCoW Framework for Prioritization

I used the MoSCoW framework to prioritize the product features and came up with the following summary and rationale for each feature:

T-Shirt Sizes Framework for Features

I used the T-shirt framework to estimate the size and work range for each feature.?

Effort/Value Matrix

Based on the t-shirt sizing exercise and the values/effort graph, I made the following decisions regarding the product MVP:

1. Real-time spending notifications to my phone
2. In-app spending analytics and budget tracking
3. Set spending limits and restrictions on the card
4. Ability to block or restrict certain merchants or categories of spending
5. Ability to generate virtual card numbers for online transactions

These features have high or medium value and relatively low effort, making them ideal for inclusion in the MVP. The could-have and won’t have features, on the other hand, have a lower value and higher effort, making them less suitable for inclusion in the initial version of the product. However, they could be considered for future versions of the product, based on user feedback and market demand.?

Crazy 8's Sketch

I used the crazy 8 technique to sketch some ideas of what the screens could look like, these screens will be developed into wireframes and high-fidelity designs and prototypes.

Low-Fidelity Wireframes

High-Fidelity Designs

Conclusion

The Kuda Bank Teen Debit Card is a product designed to provide financial independence and security for teenagers, while giving parents control over their child's spending. Based on the feedback from the interviews I conducted with 7 teenagers and 5 parents, the product assumptions were validated. The product will offer features such as real-time spending notifications, in-app spending analytics, and the ability to set spending limits and restrictions. Parents will have control over the card and be able to track their child's spending, while teenagers will feel more independent with their own prepaid debit card. The product aims to provide a solution to the challenges parents face in managing their child's finances while giving teenagers the financial tools to learn and grow.