Project Everest

Proposed Experiment

[Proposed Experiment]: Microfinance II Malawi - Currency Test to Village Banks - July 2019

Lean Phase: Solution

Assumption: Village banks are willing to share their accounting information and customer data with PEV, in exchange for a low interest loan to be used as increased capital for the village bank, therefore allowing them access to larger loans and more frequent loans for their customers.

The end goal for this currency test would be to get village banks to use a digital tracking system on Google Pixel mobile phones to enter accounting data and records, that we could use to track payments from Australia from July-December.

Time Period: 2 weeks

Success Metric: The success metric is the number of village banks that are willing to share their accounting information with PEV in exchange for a low interest loan. This should be tested with 6 village banks (based on the number of banks from the success point of offer testing).

CRITERIA

Green Light: Proceed to building the MVP in preparation for future currency and utility testing.

Success Point: At least 5 village banks identify with the above assumption. They are willing to share their accounting information for tracking by PEV from July-December in exchange for a low interest loan. 

Orange Light: Orange light may require iteration of things such as a sales pitch, or ability to communicate the value of this exchange for village banks. It is important to note that handing over customer and accounting data is no small ask, and therefore the teams must be prepared to carry out multiple meetings with village banks in order to call this a green light.

Failure Point: Less than 3 village banks are willing to share their accounting information for tracking by PEV from July-December in exchange for a low interest loan.

Red Light: Red light would be to reevaluate the value we are offering to village banks, and possibly reevaluate our methods for building and understanding our MVP.

Experiment Build

  1. Build sales pitch based on credit score profile and loan requirements of village bank (as discussed at the profiling and offer test stage). Ideally this pitch will occur following the offer test.

  2. Organise meeting to deliver sales pitch. This will ideally occur concurrently with an offer test depending on the situational variables. However, it may also require multiple follow up meetings for an agreement to be reached. 

  3. The digital infrastructure of the village bank must be determined. If the village bank members have access to smartphones, this can be used for submitting data for tracking purposes to PEV. Alternatively, the village bank can purchase a Google Pixel smartphone from PEV for 100,000MWK to submit this data. Tracking will occur through submissions to a survey, which is automatically collated in Google Sheets.

    1. It should be noted that the offer of a loan is contingent on the village bank sharing their accounting information for tracking by PEV.

  4. The data will be collected and analysed from July to December by PEV. This will enable the team to prepare for future currency and utility testing.

Sales pitch

  • The sales pitch should be developed by the team before the currency test occurs to ensure that all team members understand what will be offered by PEV and what PEV needs from the village bank.
  • For example: “Would you be willing to give PEV access to accounting and customer data, in exchange for the chance to get a low interest loan to increase the amount of capital you have available to loan out to your customers. In order to see whether you’d be eligible for this loan, we need to observe your accounting records over time, to see whether you meet a certain threshold of what we consider a safe customer to loan to, and at what interest rate we can provide. Would you be willing to participate in this with us?”
  • There are important considerations for the team when developing the sales pitch.
  • Managing expectations of which the village banks will receive the low interest loan. Some village banks may expect that a loan will be provided on the spot and this will need to be managed. We are offering an opportunity for the village banks to have access to a loan, which is dependent on our risk profiling and/or the data that is collected between July and December. To manage these expectations, the team must ensure the village bank is aware that PEV will be transparent throughout the process and will continually communicate about our capacity to provide a loan.
  • Ensuring privacy and confidentiality of data that we obtain. The village banks will be provided with confirmation that the information they provide will be dealt with in a confidential manner and used only for the purposes of helping the village banks to obtain a loan for increased capital. The team should include an outline of how information will be kept confidential in the sales pitch.

Experiment Results

edited on 25th July 2019, 06:07 by Courtney Dudgeon

Gabriel Raubenheimer 6 months ago

Status label added: Adopted Experiment

Reply 0

Gabriel Raubenheimer 6 months ago

Status label added: Proposed Experiment

Status label removed: Adopted Experiment

Reply 0