projecteverest

Proposed Experiment
Not Started

[Proposed Experiment]: SoCon Malawi - Village Banks - Creditworthiness and Loans - January 2019

Lean Phase: Customer Segment

Assumption: The intention of this experiment is to validate that Village Banks are a viable and creditworthy customer segment to provide micro-loans to. From prior research, it was determined that Village Banks present us an opportunity to access the customers that have the highest level of creditworthiness within their communities. By providing micro-loans, we can engage with a new customer segment whilst providing access to capital that will enhance the operations of Village Banks. We are using a small sample size in the initial phase of this experiment.

 

Time Box: Conducted over 2 months of the project. Preference for continuation over January and February 2019.

 

Success Metric:

If Village Banks:

  • Express a need for additional cash flow
  • Receive the confirmation and reminder messaging
  • Repay loans on a weekly basis

 

Criteria

Success Point: All three Village Banks repay their loan on a weekly basis.

     Green Light: Proceed to further experimentation on Asset Lending

Orange Light Point: At least 1 Village Banks repay their loan, but are inconsistent with repayment.

      Orange Light: Does a monthly repayment structure better suit Village Banks? Adapt Loan Structures experiment to be specific for Village Banks.

Failure Point: At least 2 Village Banks fail to repay their loan.

       Red Light: Re-evaluate viability of village banks of a potential customer segment.

 

Experiment Build

  1. Identify the top 3 Village Bank in terms of operation and creditworthiness

  2. Determine the conditions of the loan that will be provided: interest rate, weekly repayments

  3. Integrate the loans with the USSD system and CRM

  4. Distribute small loan to the 3 identified Village Banks

  5. Track repayments over a period of at least 4 weeks (ideally 6 weeks)

  6. Measure and post results

 

Next Move

If the assumption is validated, increase the amount of village banks that we provide loans to.

 

Kurt Michl 2 months ago

Has this been implemented and what are the findings so far?
Is there not a contradiction in the sense that village banks operate as a savings fund. As such, having weekly repayments is perhaps inorganic to the VB?
I remember discussing this with Ella, and it was understood (in July, so things have surely changed with new information) that it would likely be unwise to take money out of a VB irresponsibly (on an arbitrary weekly basis) because it might change the way the VB works if they need to make repayments to you.

In any case, weekly repayments may pose a problem with a to of the loans handed out by VB are more than a week long in duration.

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Ella Grier 2 months ago

Status labels added: Proposed Experiment, Not Started

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