Project Everest

Adopted Experiment

[Adopted Experiment]: Microfinance II Malawi - Profiling Village Banks - July 2019

Lean Phase: Customer Segment

Assumption: Village banks are willing to meet with PEV and discuss their operational procedures, including collateral requirements, interest rates and capacity to loan.

Time Period: 2 weeks 

Success Metric: The success metric is the number of village banks who are willing to share information on operational procedures. The team will interview 10 village banks. 


Green Light: Proceed to offer testing with village banks.

Success Point: At least 8/10 village banks interviewed identify with the above assumption and agree to discuss further with PEV (offer testing). 

Orange Light: Re-evaluate our offer message and questions to ensure we have correctly interpreted the problems facing village banks. Adjust our interview questions, methods and techniques as such.

Failure Point: Less than 5/10 village banks interviewed identify with the above assumption.

Red Light: Re-design our approach to profiling village banks.

Experiment Build

  1. Develop interview questions for the village banks.

  2. Organise meetings with 10 village banks. The village banks should be of varying sizes in different locations.

  3. Practice questions and prepare team members for meeting/interview.

  4. Conduct interviews with village banks.

  5. Post-interview: collate data. If green light prepare the team for offer testing as necessary.

Interview Questions

These interviews are important to understand how the village bank runs, the systems they use to record data, how they enforce repayments, what interest rates they charge and their default rates.

Thus, initial questions should include:

  • What is the structure of your weekly village bank meeting?
  • What are the requirements for members to join the village bank? For example, do they need to own a house in the village or buy a chitenje?
  • What interest rate does the village bank charge on loans to members? How is this interest calculated? How is this interest repaid?
  • What is the default rate of the village bank? How do you minimise the default rate? For example, is there an incentive for members to repay their loans?

Once the operational procedures of the village bank have been discussed, the meeting will move to focus on the offer test experiment (if suitable).

Experiment Results

edited on 19th July 2019, 19:07 by Grace Blackford

Grace Blackford 6 months ago

Status label added: Adopted Experiment

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