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Proposed Experiment

[Proposed Experiment] Offer Test Village Banks Malawi July

Lean Phase: UVP

Assumption: Village banks are willing to meet with PEV to discuss the potential to increase capital amounts in village banks, therefore allowing access to larger loans and more frequent loans for their customers.

Time Box: 2 weeks

Success Metric:

The success metric is the number of village banks who identify with the above assumption. The team will interview 15 village banks.

CRITERIA

Green Light: Proceed to currency testing with village banks.

Success Point: At least 10/15 village banks interviewed identify with the above assumption and agree to meet with PEV at a later date.

Orange Light: Re-evaluate the problem and ensure that we understand the value that village banks are searching for. Adjust the offer test as such.

Failure Point: Less than 5/15 village banks interviewed identify with the above assumption.

Red Light: Revisit problem identification for village banks.

Experiment Build

  1. Build out survey and interview questions for the village banks. Ensure that you have a time and place ready for the meeting you are to offer the village banks.

  2. Set up meetings with 15 village banks. Ideally these will be with differing sized village banks in different villages to get a broad scope of different institutions.

  3. Do rehearsals and prepare the team for interviews.

  4. Conduct interviews.

  5. Post-interview: collate data, if green light prepare the team for the meeting/currency test as necessary.

Questions to ask:

It is important to understand that these interviews are useful for collecting information on how the village bank runs, the systems they use to record data, and how they decide which customers get access to loans.

Thus, initial questions should include:

  • What are your systems like for collecting customer information? Are they paper-based? What information do you collect?
  • How do you decide which customers get loans? What do ‘good’ and ‘bad’ customers look like?
  • What is your security like for these loans? How do you recover money? What is their incentive to pay back?
  • What are your repayments like? Are they the same for every customer? Do you charge interest? If so, how much?
  • How do you feel like you get so low default rates? What is different about your organisation and other financial institutions?

After ensuring you have adequate information about how the village bank runs, it is important to then confirm that they share the problem you are offering to solve (these are important to ask because even though we have validated this as a problem for village banks, you may be going to new village banks that we haven’t visited before). To confirm this, ask questions such as:

  • Do you have trouble accessing as much capital as you would like to run your village bank?
  • Do customers you have want access to larger loans? Would they like loans more frequently?

It is important to understand how these village banks describe their own problem, as this can be used as important information in the future.

Next, proceed to offering them the value of the above assumption, by asking:

  • Would you be interested to hear about ways you can access greater amounts of capital/get access to larger loans for your customers?
  • Please come to a meeting we are holding at x location at x time to hear more about this.

Rose Martin 3 weeks ago

Status label added: Proposed Experiment

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