I have omitted confidential information in this case study. All information is my own and does not necessarily reflect the views of M1.
The problem
Margin went from 17k to 10k active users, in part due to higher interest rates. On average, 6% of our competitor AUM is borrowed on margin and we’re stuck at 2%.
Project goals
Leadership requested an automated feature to let clients set a debt-to-equity (leverage) ratio, then automate borrowing and investing to maintain it. The goal was to increase margin debits and save clients the time of repeated manual transfers. We wanted to assess product-market fit and learn more about our clients' borrowing patterns, so we lobbied for two weeks to speak with clients.
Original state of margin borrowing
Timelines
3 days to concept
2.5 weeks for research + analysis
2 weeks for designs
9 week build
Constraints
Limited to what we think we can get built within 9 weeks
Focus on existing users
Use as many existing UI components as possible to limit scope
User research
Interviewed 14 margin users, created test plan and script, analyzed results, and shared findings with the CEO and teams.
Most clients were afraid to borrow automatically and shared existing pain points.
We learned that existing issues are preventing users from utilizing Margin.
So then, we pivoted.
New product vision
Empower Taylor to use their Margin Loan, how it makes sense for them.
Taylor wants to remain invested, and leverage their holdings. Whether its maximizing market exposure, or understanding how much can be used for other expenses, Taylor understands how they can utilize their Margin Loan and feels confident doing so.
Key opportunities
Increased visibility into buying power
I want to use margin to buy stocks and funds from my portfolio, directly, and maximize my investments.
Clarity around credit health
I don’t know what this score means and how much I can/should borrow.
Predict credit health
I want to understand how my health score changes if I borrow from margin, invest, and pay back my loan.
Improved margin call notifications
I want to know when I’m near or at a margin call and not be surprised.
Solutions
Conceptualize the risk of borrowing
Created ~20 options
Deep collaboration with PM and CS
Great efficient working sessions!
We landed on a streamlined simulator that ultimately influenced visualizations on the dashboard.
New margin dashboard
Display how much you can borrow to invest vs buy
Improve health score understanding
Move away from credit score (compliance ask)
Explain how billing works and remove Due language
Update to match other landing pages
Creating data visualizations
I worked with the Design Systems Team to create color-accessible components for both data visualizations on the dashboard.
This included establishing new semantic color tokens.
