kotak research presentation

User Research ReportStudy of Mobile Wallet

Confidential www.inkoniq.com

Rustam Singh Sandhu () - Let's break it down just showing Objective and reducing the textRustam Singh Sandhu () - Kotak knows what they arePrachod M Prasad () - Need to finalize the intro slide. Not sure about the first one. Not very comprehensiveOur Design Approach

Study the consumer behavior in their day-to-day money transactions to identify alternative opportunity areas for the same.

Identify the users pain points, joys, frustrations, desires, influencers, mental models in all payment life cycle in most aspects of life.

Hypothesis validation of the proposed feature set.

Study the behavior of prospective users to understand the motivation that will drive them to be a part of Kotaks solution.

Perform a UX benchmarking exercise in order to assess how users perceive the available solutions out in the market and the UI performance of competitors in various stages of the users journey.

Research Objectives

A detailed User Research was undertaken by INKONIQ on behalf of KMBL, with the primary objective of understanding a users mindset to identify information, which drives them to use mobile wallets, their pain points, and desires in terms of transactions, shopping, finance management etc. Various research methods like heuristic evaluation, desk research, ecosystem study, user interviews, survey and persona definition were executed to filter effective suggestions for the application in the form of a roadmap.The scope is limited to User Research and does not include Market Research.

The activities include:Ecosystem mapping / Heuristic evaluationUser segmentationUser researchPersona definitionRecommendations

Scope of Research

24 individuals with different backgrounds (students, professionals, businessmen, family) from Tier 1 & Tier 2 cities such as Bangalore, Mumbai and Coimbatore were interviewed during the research. An online survey was also conducted. The interviews were designed in a semi-structured pattern to guide the participants to discuss the aspects which were required to be understood by this project.

Execution Methodology

F2F InterviewsOnline Survey

User experience competitor benchmarking is done to assess the strengths and weaknesses of products already in the market. The results helped to gather ideas and leverage wisdom to continue where the competitors left off, identify pros and cons of a product or process, and make difficult decisions about strategic direction.

In this study, PayTM, Mobikwik and ICICI Pocket has been chosen as the competitors.

Ecosystem Mapping / Heuristic Evaluation

Heuristic Evaluation Chart

Secondary Research FindingsContd..PayTM and Mobikwik have done a good job with information architecture and structuring.Mobikwik & Freecharge have lesser features as compared to Paytm but both do a better job in providing clarity on what the user can accomplish.Users were able to comprehend the value proposition of Freecharge & Mobikwik better.As per Nielsen's report, the key factors that limit consumers willingness to use mobile payments include Lack of Trust, Inconvenience & Poor Data Connectivity.Mobile Wallet success is highly tilted towards offers/deals and tie-ups with large no. of merchants, PayTM is one key example.As per Nielsen's report, the scope for the wallet is not limited to Tier 1 cities; people from non-metro cities spend relatively more time than metro cities. Males dominate the mobile payment category.

Disruptive Technologies in use - Tone Tag, Magnetic Secure Transmission. These technologies allow payments to process on current infrastructure.

P2P Money Transfer is simplified to such an extent that email, phone number or twitter handles are the only input fields required, along with the amount to be transferred. Square Cash is one key example.Payments can be done without a data connection. mPesa (By Vodafone) in Kenya introduced this revolutionary concept and been extremely successful. Coin is a Digital card aggregator which simplify the issues of carrying multiple cards.Digi Locker, a govt initiative, used to digitally store identities and is legally acceptable everywhere.Alipay is a key player with maximum market penetration, but only in China.

Secondary Research Findings

Based on the understanding of the landscape, the interviewee database was segregated into 4 segments to collect the data for the research. This was to validate the hypothesis and define the feature list. This also helped us to understand the users current pattern of wallet usages in particular as well as the money transactions in general.

The Millennial

Busy Bee

Working Lady

The Explorer

The Migrant

The Businessman

User Segmentation

User Research


Methodology: Semi-structured interviewsAge Group: 20-39Segmentation: Students, Working Professional, BusinessmenTotal number of participants: 24 Gender diversity: 75% Men and 25% WomenLocations: Mumbai, Bangalore, Coimbatore.Study Distribution: 8 interviews across each city

Research Execution

Hypothesis & Ideas validatedVarious hypotheses & ideas in following areas were tested to derive the insights.

Safety, security & transaction behaviourPerception mappingPreferred mode of transactionMobile walletsJoint account

Online & Offline purchase behaviourOnline Vs. Offline shoppingLoyalty cards

Digital identities - Its usage and storagePersonal finance management solutionsServices aggregation in various sectors like MStore, Offers etcStickiness - Ways to ensure daily usage of the solution

1. Safety, Security & Transaction

Private banks are better, everything takes lesser timeHDFC resolves these issues very easily. Have much more functionalitiesOne bad experience & the new customer is goneDuring a transaction with PNB my money got stuck, when I called, the they informed me that they will tell what will happen with the money after in 45 daysStancy is better and incase you call them about complaints and everything, they respond very quicklyHad a bad experience with SBI, I transferred some money from Stancy to SBI account, it did get debited from stancy but did not reach SBI,, when I called, SBI customer care was casual with the answersSBI Bank, they ****. Literal govt employeesThe day I start earning I will throw away the SBI accountNeeded a DD made and got it in moments from HDFC Bank

Usage countPERCEPTION MAPPING - PVT. Vs PUBLIC BANK Quotes from user interviews

PERCEPTION MAPPING - PVT. Vs PUBLIC BANKIssue redressal experienceTime taken to add a payeeDelay in money transferPoor servicesScepticism towards public banks

Proactive instead of reactive issue redressalLeast time to add a payeeVery quick money transfersRewards

Key pain pointsDesires

Typically, if u see my transactions, I am a credit card guy. It offers reward system Petty cash is a big problemDebit card, it is quick & convenientI actually want to remove the pain of going to an ATM, Infact one day I was thinking if these people have a PAYTM, my cook and maid, these big-big restaurants they have a paytm and I can transfer them money, , My Preferred mode of transaction is debit card. It's very convenientI don't find cash transactions very good, I prefer to use debit card or internet banking, because it gives me a proof that I am making transactionsPetty cash is a problem-Auto, cash, . But all that happens when you go to the store, remove that part.

PREFERRED MODE OF TRANSACTION Quotes from user interviews

PREFERRED MODE OF TRANSACTIONCarrying cashPetty cashProof of transaction

Very convenient PayTm Like TransactionsRecord of every transaction


MOBILE WALLETS - Cashback & Offers Quotes from user interviews

The key reason for me using paytm is cashbacks and discounts ?I have an account with Mobikwik also, and whenever I get a cashback I recharges it and then use it.The primary motivator for using a mobile wallet is the offer, as it does the same thing as your credit cardPaytm has the cashback offer so that is good and transaction experience has been good.If there is an offer, I will buy.Anything that is present on Internet and gives me return, I use itWe have a group on facebook which has 34K people, it is for discussing offersPersonally I use wallet only when I have some profit from it, why to get you money into your wallet and get it stuck

MOBILE WALLETS - Convenience Quotes from user interviewsI would love to pay everywhere through the wallet, as I don't have to take out my purse and then take out credit card. I think a lot about paying through wallet everywhereThe time when people will stop using wallets is not very far, & people like me will stop using physical walletsI was having 1k Rupee note, and when I bought the stuff, he didn't have change, and he did not accept cards and all, at last he said do you have a PAYTM account, then transfer He says I was more than delighted.Rewarding thing is the convenience of payment, even if the rewards are off I will use them

MOBILE WALLETS - Payment Ecosystem Quotes from user interviewsIf you look at all the associated apps you have for food, for travel like Uber if you consider, they have PayTm aligned to them as a payment mode, that was my one point as in the tipping point for me to start using Paytm Also one key thing with PayTm is that PayTm also has shopping integrated to it, so whatever cashbacks you get you can use it to do shoppingYou can buy food, grocery, movie tickets, clothes, travel, you can do everything with Paytm

Key pain pointsDesiresManually loading money to accountCannot withdraw cash out of itTransferring money to a peer not having PayTmRemembering due dates for paymentsLogging in using Username/PasswordBlocking of moneySharing of banking detailsTransaction failures

Cashless transactionsVery easy login and onboardingGetting rewarded for parking moneyUnhindered access to wallet moneyAvenues to spend the money with the effortlessness of mobile wallet transactionsQuick money transfers without the requirement of being on same payment wallet.Proactive feedback & redressal mechanism

MOBILE WALLETS

No, never had the need. Second, I don't want to show my bills to my dad. It did come to my mind at certain instances but never had the need for a joint account.People don't want to become too transparent about the volume of their transactions I think that was the motivation, we wanted to have an account, anybody in family can pool in money and it works more of a piggy bank kind of thing.I changed the phone number for notifications in the joint account, so that all the notifications came to me instead of themThere are certain transactions which I do not want to disclose to parents like how much I shop online, how frequently do I go out for drinking.I don't want a joint account as my transactions will be too much transparentJOINT ACCOUNT Quotes from user interviews

Key pain pointsDesiresTransparency in transaction.

Confidentiality of transaction detailsVery quick money transfers

JOINT ACCOUNT

People trust & like private banks relatively a lot more than public sector banks, and it is driven highly by quick redressal of issues. This trust can be utilized in marketing campaigns.Debit cards are preferred mode of transaction for most people, as they find it convenient, but interestingly people do like PayTm and in several cases across the research have desired to use mobile wallets as the preferred mode of transaction.Quick money transfer is the most extensively occurring online transaction and time to add the payee is the greatest pain point. A quick way to transfer money directly to the account, available on the fingertips and can be a great feature. Squarecash is one such great example.Wallet-to-cash : In peoples perception, the money parked in mobile wallets is Blocked Money. Either a complete ecosystem where the money in the wallet can be used in all kinds of transactions (The kind which PayTm is trying to develop) or unblocking the money is very likely significant traction from peopleKey market drivers in mobile wallet segment are cashbacks & offers, for most people the yardstick for selecting which wallet to transact from, depends on where is the better offer.With a product positioned as a mobile wallet, is likely to attract traction only if it offers cashbacks & discounts. Strategic positioning of the solution is a key factor for success.

INFERENCES

Word of Mouth: People believe their friends and family more in the process of selecting product.People aspire to pay their local supplier with the convenience of mobile wallet transaction, but the key question to ponder here is do they want to accept money through it?Transaction failures through mobile wallets is a key deterrent in peoples opinion.For frequent users of mobile wallet, paying parking money again & again, is frustrating. They desire a way that it happens automatically or with least effort.Deep down these cashbacks and discounts make people feel rewarded and proud. A system which could show that they have achieved something or the other, will promote stickiness.People don't find a reason to park money to their wallet, although they do seek a reason to do so.Petty cash is a problem, but its not their topmost priority, though people desire for it to be solved.The everlasting opinions of a product are formed by people on the basis of how their issues were addressed by bank. People are looking for a complete product experience with very responsive and robust mechanism, which keeps them informed at every point of time.

INFERENCES

2. Purchase Behaviour

Convenience is one big factor in online shopping space, you don't have to travel to the stores but you can get what you want.I am a very frequent online shopper, 70% of my purchases are onlineI prefer to shop online, as wallets are integrated and there are a lot of optionsI prefer to shop online, I do not like to interact with a lot of peopleIf I want to buy something, I research everywhere, Flipkart, Jabong, Myntra they all have the same kind of productsI am not really comfortable with certain categories to be purchased online. Like, something which is more personalized, like clothes, shoes.Waiting in line for paying at stores is irritating, it takes more time to pay than shopI pay through wallet in case there is an offer for online shopping or else I use my debit cardI travel frequently to Nasik. I urgently wanted to send money to my father. I use Imobile by ICICI, I couldn't send it because of poor network connectivityONLINE VS OFFLINE SHOPPING Quotes from user interviews

Key pain pointsDesiresReturn money getting blocked in walletMobile phone data network IssuesJump from one site to another for comparison of productsStanding in queue at stores

Easy research of offers/prices of productsConvenient online paymentsPaying quickly (Que buster)Access to return money

ONLINE VS OFFLINE SHOPPING

I generally don't carry them, I use my phone number to get those transactions on boardI dont use loyalty cards, reward points are less. I am more of an online buyer.I have them in my purse and it makes it heavy, but they are not usefulI have 1 card for 7-10 stores. The reward points they offer are very less, so I dont carry it.I do have loyalty cards, I have also thrown some of them. Lifestyle, Pantaloons, Reliance, Levis, Van Heusen, but I dont see a point in having them. The rewards they offer are very less. But you know, if even they were online.Its very difficult, The conversion amount, the points which you get are very low, so I don't use itI dont want any loyalty cards, I don't want to be a part of loyalty stuff, they send a lot of mails and SMSLOYALTY CARDS Quotes from user interviews

It can be safely said that people in Metro cities are a lot more inclined to online shopping rather than offline shopping.Strategically, getting Amazon, Flipkart, Myntra and Jabong should be kept as top priority as most people frequently buy from these sites, Amazon enjoys the trust from major chunk of the interview participants as the whole product experience is very user friendly.PayTm is very extensively used with Uber. For some, it was the tipping point to use PayTm. Best Buses, NMMT buses, Mumbai Local has mobile ticketing presence, but have not ventured with any mobile wallet companies for payments. Targeting Mass Transit can be a great strategy to garner mass acceptance.Frequent travellers find themselves facing the mobile network issue. Sometimes urgent transactions gets stuck due to poor data network.Behaviourally, people often research a lot before buying anything online. The research is mostly directed toward finding the least price. Having a product price comparison feature is very desirable by most.People do not want to stand in queues at stores for payment. They desire a solution for this problem.

INFERENCES

People sometimes do not wish to use mobile wallets for online purchase, the key reason is in case of returns, their money will be blocked in the wallet. People want access to their money all the time.In metro cities, most of the people prefer to pay through net banking for online purchase.People, in general, are not very impressed by loyalty systems provided by brick & mortar stores.The redeem value of the loyalty points accumulated is very low, thus people at large do not like to keep loyalty cards or do not see any value in it.Nowadays, instead of giving loyalty cards, companies have started rewarding using phone number. After purchase, smses are sent to the customers.In very remote cases, people did desire to have the loyalty points online.

INFERENCES

3. Digital Identities

I typically don't carry my original IDs, I used well disguised duplicates of themThe decision to keep ID card duplicates was a consciously taken decision Oh, the Hyderabad police initiative. It's niceIf I lose my ID cards, I don't know what I will doI have lost my wallet thrice, so all my documents are scanned and they are uploaded to DigiLocker, Email and Google DrivePan card, Aadhar card, IDs everything is in the purse, but I have also kept photocopies of them in case I loose themIt was very progressive and very impressive, did not feel the need, but something like that can make our lives very convenientAlthough I do intend to keep it safe somewhere, but hasn't done it yetI used to keep my Aadhar card, Pan card, but I lost it so I don't keep it in purse now

PHYSICAL TO DIGITAL WALLET Quotes from user interviews

Key pain pointsDesiresLosing original identity cardsCumbersome walletWallet managementPHYSICAL TO DIGITAL WALLET Quotes from user interviewsKeeping IDs safeKeeping them available when requiredNot carrying the walletDigital visiting cards

People are looking for means to carry their IDs, which are legally acceptable.People plan to take correctional steps to this, but are lazy to take initiatives, a solution available at fingertips all the time can fill the gapScanned documents kept as a part of the digital wallet help in developing the perception of a complete solution.Security of the documents is a concern as some people do not want to share any confidential data about them, this issue needs to be addressed.People do not wish to keep a lot of artifacts into their wallet. Management of business cards is also a considerable pain, this issue was raised in the interviews.

INFERENCES

4. Personal Finance Management

I am the worst financial plannerWhere I have spent ? How much? I would atleast know. Next time it will help me curtail in case I am spending too much on something unnecessaryI am aware that there are apps to manage finances, but as they read smses that not effective always.The walnut gives you graphs and charts, I wanted to see those graphs I use a book to keep the record of all transactions.If you can track all my expenses, "I don't plan my expenditure because I tried doing it, I used excel sheet but on weekends I spent so much it was difficult to remember everything so I left it. But I do wish to plan my expenditureDuring travel, I am typically diligent and carry the copies or if I am worried about if I lose them, I typically take a photograph and keep it. There have been multiple cases where I have lost my bills. I have felt the need to take considerable step to prevent myself from losing bills.

PERSONAL FINANCE MANAGEMENT Quotes from user interviews


Difficult to keep track of transactionsDon't know how to do substantial financial planningSegregation of billsThe current sms reading technology for expense trackingRecording cash transactionsLosing bills

PERSONAL FINANCE MANAGEMENTKeeping track of expenditure and analysis of spending behaviourSuccessful personal financial planningManaging bill receipts efficientlyEffortless transfer of recurring billsBill due date reminders

Most of the interviewees displayed keen desire to manage personal finances efficiently.Most of them have already tried by themselves in one way or another and have left it because of its failure.People who travel need to segregate their personal finances from professional ones. A two mode finance tracker, which can record both transactions separately in the same system can be very useful.People are keen to learn how their personal finances can be managed well, a blog on PFM from bank can well enhance the perception of the product and its stickiness.The current technology of reading smses proves slightly inefficient as people forget to record cash transactions. This needs to be taken care of.People often tend to forget the due dates of various bills, people often opt for ECS (Electronic Clearance Scheme) and desire the convenience with most of their recurring bills. ECS at fingertips can be very useful for people.Walnut App is one fine example of PFM, with a few minor pain points.

INFERENCES

5. Aggregation of services

Aggregation- Yes it does, it does. Having options is not bad. It helps a lotI use grofers, big basket for grocery. Where ever I get what I want in lesser price, I use itI use a website called grabon so whichever wallet is giving me best offer, I will use thatI would not say that I use them (shopping apps) regularly, maybe once a week, maybe at times, not to buy products, but to browse through them, whether the deals are nice or something catchy comes up I keep alot of apps so that I can get whatever I wantBMS for Movie booking as it has a lot of things at one placeI use Cleartrip and Yatra both, I take it

SERVICE AGGREGATION Quotes from user interviews

Key pain pointsDesiresPaying the least price for needsGetting the best deals and offers with easeGetting notified about offers for upcoming needs.SERVICE AGGREGATIONSite/App hoppingKeeping multiple similar apps (Storage issue)

Immaterial of financial strata, everyone looks for offers.It has already been established that most people research quite a bit before buying anything, easing that research can promote stickiness.People often wait for offers after establishing their future needs, a feature which can notify them of lowest price/best offers for the product or segment of their choice is very likely to promote stickiness.People use websites like GrabOn, Nearbuy to find deals of their choice.Bookmyshow has been mentioned a lot of times in the interviews. Most interviewees look at it as a complete product right from deciding which movie to watch to booking tickets and now food as well and by large it is the only app used for booking movie tickets.Strategically getting them onboard will capture a very large movie ticket booking market.

INFERENCES

6. Stickiness

The proposition of what could possibly promote stickiness, was discussed with the interviewees.

There was no pattern found in general, apart from a minor traction to health consciousness.

But the idea that they could wake up to something they love made people happy.

INFERENCES

PERSONAS


The millennials & the explorers are the primary personas for design of this system.

The reason being they are not only extensive users, but also are influencers.

The research shows that word of mouth certainly is a key driver for penetration in the wallet market. These two personas are very likely to trickle the product information to their peers and family members.

These two personas are also very advanced users of the application and are aware of all the benefits and shortcomings of wallets. A system intended to be designed for them will cover new users effectively.

PERSONAS

RECOMMENDATIONS


RECOMMENDATIONSDuring our research on the different available mobile wallet solutions, the key pain points most users faced were:

Transferring of money frequently to their walletsLiquidation or adding of money back to the bank accounts from their walletComplexity of sending money to peers who do not have the same appFrequent transaction failures (connectivity issue and app failure)

Addressing these pain points would give Kotak a huge advantage in the market. The Desired Ecosystem

Marketing: Private banks enjoy the trust & confidence of Metro citizens way more than public sector banks. This can be effectively leveraged while marketing this product. It should also focus on aspects like inducing confidence in the security of his/her money parked, promise of better service and lightning fast grievance redressal.

The Ecosystem: The ecosystem should be built such that there are more avenues to spend through the mobile wallet. Tie-ups with a varied spectrum of merchants, enabling them to accept money through this system, and allowing them encash the same upon requirement. (Example, QR codes can be introduced to brick and mortar/kirana stores to simplify transactions. ATMs can help them withdraw this money.)

A few of the key vendors to get on board would be Amazon, Flipkart, Myntra, Jabong, public transport companies like BMS, Mumbai Local, NMMT, BEST buses apart from others.

RECOMMENDATIONS

RECOMMENDATIONSProduct PositioningPeople look at mobile wallets for cashbacks and offers, which is an already crowded market. Positioning this product as JUST ANOTHER MOBILE WALLET would not give it an edge.

It can be possibly be positioned as: A complete personal finance management system with the ability to send or receive money.A digital replacement to physical wallets.A replacement of physical banks for the masses.

RECOMMENDATIONS1. Finance Manager: A system for managing users financial transactions could be a great hook for the product. Their spending behaviour data can be used to push other banking products to them. A vault for keeping their receipts and bills, information of their spending patterns and a blog about managing finances efficiently could increase customer engagement and ensure stickiness.

2. True Digital Wallet: A system that replaces your entire physical wallet, storing all ID proofs, business cards, driving license, loyalty cards along with money. This can be used anywhere one needs to flash their ID or even exchange business cards and any kind of money transactions. The paranoia of losing ones valuables currently being carried in their wallet is also catered to. Building such an ecosystem could be a game changer.

RECOMMENDATIONS3. Banking Replacement:

The wallet could be positioned as a system that provides a user all the facilities and perks of having a bank account itself. This app would serve as a banking app for existing Kotak users as well as new prospects, which provides every facility of a mobile wallet. The advantage of the same is two fold, wherein users would not hesitate to key in their details, and merchants would have direct connect with the bank for their transactions.For non Kotak users, this would serve as a mobile wallet solution which would fetch them interest for the money parked in the wallet, and reward them for transactions made through the system.Onboarding of users by giving them a reason to add their cards to the system (either Kotak or non Kotak), so that one is made aware of the best deals for each of their cards (eg. BookMyShow gives a certain amount of cashback on using ICICI cards), and also suggests which card can be used when & where (petrol bunks give a certain cashback on AXIS bank cards).

Thank You!


kotak research presentation

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