Declining Transaction Values

Requirements Clarification & Assessment

1. Clarifying Questions:

   • Is the decline in transaction values sudden or gradual?
   • Do we need to consider seasonality or external events like holidays?
   • Are there any known internal factors, such as system outages or changes in policy?
   • Could there be external factors influencing this trend, such as competitor campaigns or economic conditions?

2. Data Requirements:

   • Historical transaction data segmented by time, geography, and customer demographics.
   • Information on recent promotions or policy changes by the financial institution and competitors.
   • Details on the types of transactions (e.g., online vs. offline, high-value vs. low-value).

3. Metric Understanding:

   • The average payment amount is calculated as the total transaction amount divided by the number of transactions.
   • Determine if the change is due to a decrease in total transaction value or an increase in the number of transactions.

4. Hypothesis Generation:

   • Are high-value transactions declining while low-value transactions are increasing?
   • Are new users engaging in smaller transactions?
   • Is there a shift in the types of goods or services being purchased?