Timeline

1 week
Role

Product Manager
In 2020, the Ontario government introduced Financial literacy as a major component of the high school curriculum to ensure that students have the knowledge, skills and confidence they need to succeed both inside and outside the classroom.

Integrating financial literacy into the classroom is a step in the right direction but it is equally important for the banking industry to create opportunities and provide a platform for youth to exercise these skills.

After studying the gap for youth services in the banking industry further, I decided to take a deeper dive and propose an innovative solution to Canada's leading bank: Scotiabank.

Why should Scotiabank care?

As youth become older, they also become wealthier, and require financing for life projects like education and homes. Since customers often stay with their first bank, it is important to forge relationships with young customers by developing products that offer the same value proposition. Find them young so wealth management becomes second nature as they grow. - it's a win win for both parties. 
The average adult has used the same primary checking account for about 16 years, according to a survey conducted for Bankrate and MONEY. More than 26 % have held onto a checking account for more than 20 years.

The Problem

Scotiabank does not yet have a specific product offering geared toward these customers.
The Design Challenge
How can we create a strategy and unique digital product that will attract, empower, and engage kid customers, thereby making Scotiabank their preferred bank of choice?

The Approach

       1.    Research and analyze the current competitive market landscape.
       2.    Identify target customer segments and user personas.
       3.    Leverage existing Scotiabank capabilities to define the product concept.
       4.    Define success criteria and key performance indicators.

Researching the Industry

-    63% of parents think financial literacy should be taught in school
-    17% of children have never been into a bank branch
-     15% of kids use their parents cards when making purchases.

Scotiabank SWOT Analysis

I used the SWOT framework for analyzing the organization's strengths, weaknesses, opportunities, and threats. It helped me build on what Scotiabank do well, to address what hey're lacking, to minimize risks, and to take the greatest possible advantage of chances for success.

Customer Landscape for Kid Customer Segment

I started off by shortlisting top competitors that came to mind. This being our direct industry peers, namely TD, CIBC, RBC, and so on. But it was also important to understand that our competition can be anywhere, and not just exclusive to the financial services industry. I expanded my research to indirect competitors - domestic and global fintechs, as well as companies like Apple and Google who dominate the tech industry.

This analysis helped me identify if our competitors are playing in similar markets, and if we are missing out on a growth opportunities that other competitors are leveraging to capture market share in this space.

I defined Scotiabank as a challenger as it offers the Getting There Savings Program; a structured youth savings and chequing account. RBC is ahead of its peers because it has taken its youth savings account one step further and has already built and put to market a different app that is “youth focused” and more personalized, simple for the under 22 age segment. 

Target Audience and User Personas

Identifying Customer Segments
I began by dividing the market into different customer segments. In our case, the customer segments that fall under the kid category of under age 16 are:

       1. Independent youth
       2. Dependent youth
       3. Identified parents with dependent children (co-users)

From the 3 possible customer segments, I then isolated the target customers we could focus the business on which was the dependent youth, and as a co-user, the parents. The reason I did not move forward with independent youth in this specific analysis was because more likely than not, kids who have part time jobs already are customers of a specific bank to receive payments. For this reason, the direct target is dependent youth from age 7-16, and the indirect target are parents with these dependent youth. 

User Interviews
Next I conducted a series of user interviews to understand each of the customer segments, goals, pain points, perceptions and behaviour with respect to financial management. This process was critical to practice empathizing with the customers and humanizing the research to create user personas.

Product Concept

The Idea
An interactive digital banking app that will excite, empower, and educate financially dependent kids, aged 7-16, thereby making Scotiabank their preferred bank of choice.
Why an app?
50% of youth under the age of 15 have access to a smartphone or some form of a digital device. Today’s youth have grown accustomed to digital, mobile interaction, as it has become the default channel for use and payments in industries like entertainment and retail. Without question, Scotia must address these customers through a digital channel that fits with their existing lifestyle they are most comfortable in.

Key Performance Indicators (KPIs)