Root & Rise · Build Specification August 2026
Companion to “Beyond the Reward Hub” and the Source Verification Log Internal · not for distribution

Product & engineering · v1 scope

Root & Rise

The strategy, extracted for development

No competitive teardown, no benchmarking case — just what to build, in what order, and the constraints that shape it.

0 · One-page brief

A six-layer loyalty and engagement program, built around one structural advantage a wallet-only competitor cannot copy: the operator can lend — so the program can reward good behaviour with cheaper, faster credit, not just bigger discounts.

Primary metric
Engagement — DAU/MAU stickiness, per the MFB's own stated priority. Retention is treated as downstream of sustained daily engagement.
The one guardrail
Engagement built purely on small extrinsic rewards decays predictably — the mercenary trap: spikes in month one, fades by month three. The fix, already designed in: pair the highest-frequency layers (Daily Habits, Moments) with a durable hook (Trust Score) that a competitor can't outbid with a marginally better daily payout.
Six layers
Ordered by trigger frequency: Daily Habits (daily, free) → Moments (per transaction) → Foundation (every transaction) → Trust Score (weekly) → Marketplace & Purpose (periodic) → Onramp (once, at KYC upgrade).
Standing check
The mercenary test — whether rising Daily Habits and Moments engagement is accompanied by rising Trust Score movement. Engagement climbing while Trust Score stays flat is the early warning, not something to notice once it has become churn.

1 · Design principles

  1. Credit is the currency, not just coupons. Tier progression feeds a visible, weekly-recalculated Trust Score that unlocks faster approval, higher limits or better pricing — alongside, not instead of, conventional discounts.
  2. Reward the moment, not the month. Every qualifying transaction carries the possibility of an instant, visible reward — not deferred, multi-week draws.
  3. Keep the base layer boringly simple. Real cashback, credited automatically, no ledger to interpret. Points and tiers are an optional deeper layer, not the default experience.
  4. Fund it with partners wherever possible. Elevated rewards run through merchant and brand partners already spending on acquisition — not entirely out of the bank's own margin.
  5. Give it a purpose bigger than discounts. The highest tiers tie to something the customer feels good about — literacy milestones, small-business growth, community impact.
  6. Design for redemption, not breakage. A high, sustained redemption rate is the target. A program that depends on unredeemed points to look profitable is depending on disengaged customers.
  7. Reward the KYC upgrade itself. Level 0 is capped at Rs. 25,000 a day — confirmed, not an estimate — which structurally blocks meaningful engagement before a customer even reaches the program. Front-load a bonus for completing biometric verification and clearing Level 0.
  8. Make daily engagement free, not compulsory spending. Streaks, quizzes and games trigger on zero-cost actions — opening the app, checking a balance, answering a question — never on making a transaction. Rewarding a transaction to keep a streak alive risks nudging vulnerable customers toward unnecessary spending.

2 · Program architecture — six layers

Ordered by trigger frequency — how often each layer gives a customer a reason to open the app.

Layer What it is Trigger cadence Build note
Daily Habits Streaks, fraud-awareness and financial-literacy quizzes, light puzzle games. The only layer rewarding showing up and learning, not transacting. Daily, no transaction required Full mechanics in §4
Moments Instant, transaction-triggered mini-reward — spin, reveal or small bonus — maximum once a day, credited instantly. Up to daily, per qualifying transaction Spendability gated by Cooldown A — §5
Foundation Automatic cashback on everyday transactions, real-time, with no points ledger. Every transaction Default experience; no opt-in complexity
Trust Score Weekly-recalculated score from transaction volume, bill-payment punctuality and savings behaviour. Unlocks faster approval, higher limits, better pricing. Weekly recalculation Requires credit-risk model integration — §7, Phase 2
Marketplace & Purpose Partner-funded voucher and benefit marketplace, plus the purpose track — literacy badges, small-business milestones, community impact. Periodic / aspirational Funded by partners, not core margin — §6
Onramp One-time bonus for completing biometric verification and clearing Level 0. Once, at KYC upgrade Sequence around Cooldown B — §5

The mercenary test — an ongoing check, not a launch decision

Track whether customers with rising Daily Habits and Moments engagement also show rising Trust Score movement. Engagement up with a flat Trust Score is the early signature of reward-chasing rather than real habit formation — fixable by strengthening the Trust Score payoff before it shows up as churn. Both series must be queryable by cohort from day one; this is an instrumentation requirement, not a reporting nice-to-have.

3 · Tier ladder — illustrative, workshop before finalising

Naming and exact thresholds are the least important part of this section and should be workshopped against the target MFB's actual product suite, risk appetite and credit policy. The layering — onramp, foundation cashback, credit-linked trust score, instant moments, free daily habits, partner-funded purpose — is the part worth protecting regardless of what the tiers end up being called.

Tier Qualifying behaviour Foundation benefit Trust Score unlock
Seed Account opened, first three transactions Welcome cashback credit Baseline score established
Sprout Regular monthly transacting — bills, transfers, top-ups Elevated cashback on two to three transaction types Score visible; first loan pre-qualification signal
Root Sustained three months or more, on-time bill payments Partner marketplace access unlocked Faster loan approval track; modest limit increase
Harvest High, consistent activity plus a savings product held Priority support; increased Moments reward rate Preferential pricing on qualifying loan products
Legacy Top-decile activity 12 months or more, or literacy and small-business milestones Full marketplace and purpose-track benefits; invitation-based perks Best available pricing and limits; fast-track for new product pilots

4 · Daily Habits — build spec

4.1 Streaks

Trigger: a free daily check-in action — app open plus a tap — never a transaction. Reward: escalating points with weekly milestones, so the thirty-day mark is worth reaching.

Day Baseline Milestone bonus That day's total
Day 1 1 pt 1 pt
Day 7 1 pt +2 pts 3 pts
Day 14 1 pt +4 pts 5 pts
Day 21 1 pt +6 pts 7 pts
Day 30 1 pt +9 pts 10 pts + tier credit

4.2 Fraud-awareness & financial-literacy quizzes

Format: two to three questions per session, rotating content, one to two points per correct answer. The explanation is shown after every answer regardless of correctness — education is the point, score is the hook.

Starter question bank — expand over time, weighted toward branchless-banking fraud patterns

Track this metric: quiz completion correlated against downstream fraud-dispute rates by cohort. If the correlation holds, this layer is partially self-funding through avoided dispute and fraud-loss costs — report it to Risk and Finance that way, not just as an engagement number.

4.3 Light games — defer, don't build first

5 · Regulatory constraints — design around these

These are confirmed, not theoretical. Each one changes what the UX is allowed to imply.

Cooldown A — funds-received hold · 2 hours

Cash-outs, online purchases and top-ups against newly received branchless-banking wallet funds are held two hours (SBP, confirmed). Any instant reward credited via Moments is itself “funds received”. Build requirement: credit it visibly and instantly, but the UI must say it becomes spendable after the standard window — do not imply instant usability.

Cooldown B — security-action hold · 2 hours

A separate, broader freeze on all debit transactions, triggered by account registration, new-device registration, email change, or MPIN change or reset — confirm the target MFB's equivalent rule before build. Build requirement: if the Onramp/BVS flow involves a new-device registration, expect a blanket debit freeze immediately after, not just on the bonus. Credit and celebrate the Onramp bonus at that moment, but sequence messaging so it doesn't imply the customer can spend anything at all for two hours afterward.

Level 0 ceiling · Rs. 25,000 per day

Confirmed directly against the source terms. This is the reason the Onramp bonus exists: a Level 0 customer is structurally capped out of meaningful engagement with the rest of the program until they clear it.

Points liability · IFRS 15

Model Daily Habits points separately from Moments points — different volume and redemption shapes: many small habitual points that pool up, versus occasional larger instant rewards. A single blended breakage assumption will misstate the liability. Finance and Audit sign-off is required before launch.

Liability = Outstanding Points × (1 − Breakage Rate) × Cost Per Point

Shariah framing

If an Islamic-window variant is offered: frame rewards as discretionary institutional generosity — hiba — tied to real transactions, never as a promised or rate-benchmarked return. Chance-based mechanics are workable if the entry is a transaction already happening for its own purpose, not a discrete paid stake. Get named Shariah board sign-off on the final mechanic — not the marketing copy — before launch.

6 · Funding & cost allocation — rules by layer

Layer Funding rule
Onramp Fixed, small, one-time cost per KYC upgrade — budget it as a customer-acquisition cost.
Foundation The bank's own margin, kept deliberately modest — its job is trust-building, not maximum reward value.
Trust Score Self-funding: better pricing for lower-risk, higher-engagement customers reduces cost-of-risk enough to offset the pricing concession.
Moments Fixed marketing and engagement budget, capped like a CAC allocation — not an open-ended prize pool.
Daily Habits The cheapest layer: small, non-cash points, largely redeemed into the partner-funded Marketplace. The fraud quiz is specifically trackable as partially self-funding via reduced dispute and fraud-loss costs.
Marketplace & Purpose Funded predominantly by merchant and brand partners paying for elevated visibility and earn rates.

The deposit angle

Average-Daily-Balance gating on tier progression (Root, Harvest) is a funding source, not a cost — every rupee of ADB a tier pulls into savings and current accounts is low-cost retail funding that reduces blended cost of funds, measured in basis points. Track this jointly with Treasury, not just Product.

7 · Build roadmap

Phase Timeline Ship
Phase 1 0–3 months Onramp bonus, daily check-in streaks, Foundation cashback and the basic Seed–Root tier ladder, all on existing transaction data. Breakage tracking instrumented from day one.
Phase 2 3–9 months Trust Score built and validated against existing credit-risk models, piloted with a controlled cohort. Fraud-awareness and financial-literacy quiz content library shipped.
Phase 3 6–12 months, parallel to Phase 2 Moments — instant transaction-triggered rewards — shipped. First three to five funded Marketplace partners onboarded.
Phase 4 12–18 months Purpose-linked track — literacy and small-business milestones — launched. Lightweight, purpose-themed puzzle layer shipped, only once the habit loop is proven. Marketplace scaled. Full Shariah-compliant variant if applicable.

8 · Success metrics

8.1 Engagement (headline)

8.2 Durability — is it mercenary or real?

8.3 Program economics

9 · Risks & mitigations

Risk Mitigation
Quietly becomes a discount-only clone, losing the credit-linked differentiator during build Protect Trust Score as a funded, tracked workstream from day one — not a Phase 2 item that slips
Regulatory or Shariah non-compliance in reward structuring Compliance and the Shariah board involved in mechanic design, not just marketing review
Points liability understated, creating an audit finding Joint Finance and Audit liability model built and reviewed before launch
Cannibalising loan margin through overly generous Trust Score pricing Pilot pricing and limit changes with a controlled cohort before full rollout; risk-model validation as a launch gate
Execution quality — support, redemption reliability — undermines an otherwise sound design Treat redemption reliability and support responsiveness as core product KPIs from day one, not afterthoughts
One big-bang release delays time-to-market Phase 1 — Onramp, Foundation, streaks — ships on existing data, independent of the more complex Trust Score work

10 · Explicitly out of scope for v1

Named here so scope-creep has something concrete to point back to.

  1. Light games and puzzle mechanics — deferred to Phase 4, after the habit loop is proven with streaks and quizzes.
  2. The full Shariah-compliant variant — deferred to Phase 4; get Shariah board sign-off on the mechanic before this phase starts, not retrofitted after.
  3. A quantified financial model — exact NFI from a premium tier, exact basis-point impact on cost of funds. Not built: it needs the target MFB's actual current cost-of-funds and subscriber-adoption assumptions as inputs. Do not substitute invented placeholder numbers.
  4. Exact account-tier thresholds above Level 0 for the target MFB specifically — pull them from the MFB's own live Schedule of Charges before finalising the Onramp bonus amount. The Rs. 25,000-a-day Level 0 figure is confirmed; figures above that are institution-specific.

The names and thresholds are workshop material. The layering — onramp, foundation cashback, credit-linked trust score, instant moments, free daily habits, partner-funded purpose — is the part worth protecting.