Project Everest

[Proposed Experiment]: Malawi SoCon - Flexible Payment Plans - February 2019

Lean Phase: Revenue

Assumption: Customers will make payments to their payment plan as soon as they have money. These payments may not follow the set weekly or monthly payment pattern, or any pattern at all, due to the variability of many customer’s incomes. Furthermore, there is currently no incentive for customers to pay ahead of their next instalment or to pay more than the minimum amount required per instalment.

Time Box: 1 month – July 2019. This is an experiment that will be monitored throughout the next project month.

Success Metrics:

1) Repayment Rate

2) Loan Duration


Success Point: The repayment rate increases, as we introduce more flexible payment plan options. Furthermore, people are repaying more than the minimum amount required per instalment, hence loan durations are shorter.

Green Light: Continue to run more flexible payment plan options to customers and provide incentives for customers to decrease their loan duration by paying off instalments quicker.

Orange Light Point: The repayment rate remains the same. Customers continue to pay the minimum amount per instalment.

Orange Light: Re-evaluate the structure of the flexible payment plan that has been introduced to customers. Adjust features and incentives to encourage customers to pay off their loans faster and more regularly.

Failure Point: The repayment rate decreases. Customers pay less than the required/minimum amount per instalment.

Red Light: Conduct further research into customer’s different circumstances, demographics, employment and income in order to develop a payment plan that is more suitable to their needs and lifestyle. 

Experiment Build:

The purpose of this experiment is to see if a more flexible payment plan will decrease the amount of defaulting customers and improve both the rate and duration of the repayment periods.

Some ideas about flexible payment options include:

  • Having different payment plans that are suited for different customer segments - the customer is designated a payment plan depending on questions asked at the POS, hence being more customised.
  • Charging interest on the basis of the time it takes for the customer to pay off the loan rather than having a set structure (ie. 6 months). 
  • Offering discounted price if customers are to pay off their loan before a particular date.
  • Not charging interest on the payment plan, but rather charging late fees for every payment that is overdate.
  • Only having an end date for the loan period, through which the customer can pay instalments when suited, rather than weekly or monthly due dates.

Through these different flexible options, it is anticipated that the repayment plan will be more customised and accessible to customers. As a result, the repayment rate will increase and customers will also be incentivised to pay off loans at a quicker rate. 


Through interviews that were conducted in various villages, it was discovered that over a third of customers are paid variably. As such, we have developed the understanding that it can be difficult for customers to stick to a set weekly or monthly payment plan when they are not paid as frequently.

In the build of the adaptations of the payment plan, there will be a trade off in ease of explanation of process, ease of use amongst customers, and widespread suitability amongst customers.

See Pros and Cons List of current payment plan below for further consideration:

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edited on 22nd February 2019, 13:02 by Ella Walburn
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