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[Proposed Experiment] SoCon, Malawi January, Defaulting Customers Experiment - Risk Profile

Lean Phase:

Customer Segment

 

Assumption:

Creating a Risk Profiling method will reduce the current default rate by ensuring that loans are only provided to those who will be able to pay it back

 

Time Box:

2 weeks (or time to profile 30 defaulted customers)

 

Success Metric:

Metric

This experiment measures whether our current defaulting customers would have been rejected a loan had we risk profiled them with other new profiling survey.

 

We will measure this over 2 weeks, or the time it takes to survey 30 customers

 

Green Light- Proceed to use risk profiling when deciding whether to give loans to new customers

Success point More than 70% of defaulting customers are correctly identified by risk profiling tool as not being loan worthy

 

Orange Light- Change weighting of certain aspects and potentially remove or add new questions

Between 50-70% of defaulting customers surveyed are correctly identified by risk profiling tool as not being loan worthy

 

Failure Point Less than 50% of defaulting customers surveyed are correctly identified by risk profiling tool as not being loan worthy

Red Light- Completely overhaul risk profiling and develop new metrics for more reliable profiling

 

Experiment build:

The risk profiling tool will be in the form of an online survey, which will link to a Excel spreadsheet, which will determine from the answers given, whether the person is a suitable loan candidate



  1. Who are they?

·       Name?

·       Phone number

·       Location/Village

·       What loan plan are you interested in?

 

2.              Can they repay?

·       Occupation

·       When do you get paid?

·       Is your income impacted by seasons?

·       What is your monthly income?

·       Weekly expenses related to product

·       Do you have access to Mobile Money

 

3.              Will they repay?

·       Do you have kids who are school age?

·       Have you ever had a loan before?

·       Who was the loan with?

·       Did you repay it?

·       Do you have any loans that are outstanding right now?

·       How much is your outstanding loan for?

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