Project Everest

Adopted Experiment

[Experiment Adopted]: Village Banks (3/4) - Offer Testing

Lean Phase: Offer Testing 


Assumption: current sources of informal credit are insufficient to meet demand. This involves proving two things:
1. There is latent demand for loans - i.e. that people are either not getting loans when they want loans, or that those getting loans want bigger loans
2. This is because they have insufficient funds to provide to such potential customers (as opposed to rejecting them on the basis of creditworthiness)


Time Period: 1 week (or time taken to survey 6-8 village banks) 


Success Metrics:
1. % of customers that either:
        a) want a loan but don’t have one, or
        b) have a loan, but want a bigger one
[ideally, sample size of 10+ per village bank; otherwise, based on anecdotal evidence from village chief]
2. % of village banks that have insufficient funds (c.f. having sufficient funds but rejecting applicants due to creditworthiness, or on other bases)


Criteria:
Success Point: if more than 30% of customers want a loan (if they don’t currently have one), or a bigger loan (if they currently have one)
          Green Light: proceed to Channel Preference experiment
Orange Light Point: if 15-30% of customers want a loan (if they don’t currently have one), or a bigger loan (if they currently have one)
          Orange Light: understand why they don’t want a loan. Is it because, a) they don’t need one, b) they can’t afford one, or c) they don’t want a loan for other reasons?
Failure Point: if less than 15% of customers want a loan (if they don’t currently have one), or a bigger loan (if they currently have one)
          Red Light: identify whether there is simply no demand for loans, or if there is no latent demand for loans


Experiment Build:
1. Create a survey based on the above criteria
2. Identify village banks to validate assumptions with
3. Organise village visits
4. Execute survey
5. Measure results and post experiment results

edited on 28th January 2019, 10:01 by Ella Grier

Ella Grier 9 months ago

Status labels added: Experiment adopted, Complete

Reply 0