Project Everest

[EXPERIMENT RESULTS] Financial Institution - Solution Experiment - July 2019

[EXPERIMENT RESULTS] Financial Institution - Solution Experiment - July 2019

Reference to Experiment Design post:

https://projecteverest.crowdicity.com/post/2092360

Lean Phase: Solution 

Assumption: FIs have particular features that they require in the financial documentation they acquire from customers.

Success Metric: The % of FI’s that give features which inform an MVP based on improving customers financial management and documentation.  

Results:  60% of FIs gave us features to add to the MVP therefore the experiment is green lighted 

Result Spreadsheet:

https://docs.google.com/spreadsheets/d/1XHztpmp58-2Dw2KACeqY16tUILWXSaxSS5ghxiDqDCM/edit#gid=0

Validated Learning:

From conducting meetings with FIs we were able to better understand the features our MVP required. 4 out of 5 FIs approved the idea and layout of our MVP and they also demonstrated an interest in building a relationship with PEV in the future. 

We found that 3 out of 5 FIs require a way of confirming the legitimacy of the data inputted into the spreadsheet. It must be validated to ensure they are able to accurately assess the risk of loaning to an SME. We received a suggestion to seek approval of our MVP from the taxation office, with their approval we could ensure the figures in the spreadsheet can be validated in conjunction with their earnings and their tax payments.

Knowing this we met with FRCS in Sigatoka for supplementary data, we found that the tax office requires SMEs to complete “Form B”, a tax return claim form. The tax office representative gave us insight that business owners have trouble filling this form out because they do not have the right financial information to fill the form (e.g their net profit/loss). The tax office gave us verbal approval on the template that we are working on. The FRCS representative, Mr Sikeli also told us that we should approach the main office in Suva and speak to the higher ranking officers to bring more weight in the solution we are proposing. He also recommended that we have a convertible format for VAT reporting.

Various FIs suggested features that we could potentially add to the MVP. These features included:

  • Method of Doing Stocktake

  • Receipt Generation 

  • Receipt Documentation and a Budgeting. 

A stocktake feature would allow SMEs to accurately calculate their profit margins on each sale whilst allowing them to see when they must re-order stock as well as which products are producing the most profit. A feature that would allow business owners to collect and document their receipts would ensure they are able to confirm and keep track of their sales and purchases. As some industries do not provide receipts, such as in the agriculture industry, including a feature that provides a receipt template where business owners can input the necessary information and generate a receipt-like document. This too would ensure they can keep records of their sales and expenses and ensure the legitimacy of the figures they are inputting. The budgeting feature gives business owners the option to save money for a particular cause or even to grow and diversify their business if loans are not a suitable pathway for them. 

Although we had 8 offer tests that succeeded and follow up meetings/phone calls arranged, we only had the chance to speak to 5 FI’s: HFC, Carpenters Finance, Fiji Development Bank, Credit Corp and Merchants Finance. We faced blocks in meetings that failed  due to time constraints and staff changing the meeting times to ones that were not feasible. 

Next Move:

Continue to develop the MVP in Australia for the next five months before a team returns to Fiji in December. In the period between now and December some business owners in the villages will be using this MVP to utility test it as well as providing necessary feedback for its development. 

edited on 24th July 2019, 05:07 by Shaun Teh
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