Author: Sahil Khullar
Agile product development is the methodology of creating products rapidly and frequently through short cycles of development and release. It tends to focus on iterative improvements and prioritization of features based on customer needs rather than a predetermined list of specifications. Minimum viable products (MVPs) are a key component of the agile development approach that is particularly useful.
Why Must We Prioritize Features in Fintech?
Feature prioritization in fintech companies is essential because this is key to maintaining a competitive edge in the market and staying profitable in an increasingly crowded marketplace. Agile product development allows companies to develop and launch new product features more quickly so that they can keep up with changes in technology and the needs of their customers.
In the financial sector, the speed of launch can be an important advantage for emerging players because traditional financial institutions are often slow to implement new features and upgrades. In many cases, start-ups can outperform larger and more established competitors by focusing on speed and agility rather than offering a larger selection of products and services.
Furthermore, there are a lot of features that can be added to fintech products to enhance user enjoyment, but not all of them are needed to gain traction and market share. To minimize cost and maximize the return on the initial investment, fintech product owners need to focus their resources on the features that are most likely to generate significant sales and lead to a successful launch.
What is a Minimum Viable Product?
A minimum viable product is a product or service that provides the most important features and functionality required for client adoption. Often, it is a version of a product that is released early for testing and feedback so that developers can make improvements before the product is released to the market. Businesses use MVPs to gain early user feedback, test new features, and gather data on customer demand to better determine the features to include in the final release.
What is the Benefit of an MVP?
Quicker Feedback – An MVP allows businesses to get critical feedback from their users much more quickly than a traditional product release, which has to wait until all features are ready. With a fast turnaround from the initial release of the MVP, businesses can develop and refine features that customers want.
Cost Savings – Another important benefit of an MVP is that it reduces development costs because businesses can get valuable feedback in the early stages of development, which helps them decide which features to omit or build on instead of wasting time developing features that customers will not use or do not care about.
Better Audience Understanding – An MVP builds customer trust because it shows that a business values customer feedback and is focused on creating the best user experience. Customer needs and behaviors are integral in the development of the product from the MVP stage, creating a mutually beneficial relationship.
How Do We Prioritize Features?
Several different agile prioritization techniques can be used to determine which features to prioritize in a product or MVP. By prioritizing the right features, product owners and developers can get the most out of the agile methodology, save time and money, and create a successful product. Here are four of the most popular prioritization models.
The Kano model is one of the most popular methods for prioritizing features because it is simple and straightforward. It was originally developed by the Japanese quality management educator Noriaki Kano. The Kano model categorizes customer needs into three different groups: “must-have”, “performance”, and “exciter.” As developers map their features onto the model, they can determine the importance of each feature.
The MoSCoW model is another popular method, developed by expert software developer Dai Clegg. M stands for “must have”, S stands for “should have”, C stands for “could have”, and W stands for “won’t have.” Features and initiatives that are essential to the success of the product are categorized under M and worked on first. These features take priority over S features, which in turn take priority over C features.
The Priority Poker model is like a game where all the stakeholders (sometimes even customers) are gathered. The moderator decides on an importance scale—for instance, a 5-point scale. For every feature, players each choose a card corresponding to how important they believe that feature is. The players discuss the results and the game continues until most players agree on the prioritization sequence of various features.
The Cost of Delay model helps a company to calculate how much money it would lose if specific features are unavailable. The company can estimate urgency and prioritize features by calculating how much money it might lose each day by postponing the launch of each feature. Unlike most other models that evaluate user experience or consumer satisfaction, this prioritization model is based primarily on financial considerations.
Conclusion
Because the financial sector is constantly evolving at breakneck speed, product development for the fintech sector requires an agile mindset. Through the prioritization of features and the use of minimum viable products, the fintech sector can add value to its products and develop successful services that meet the needs of digital consumers. There are numerous models for agile feature prioritization. Product owners and development teams should research their options and adopt the one that best works for them.