SERVICE DESIGN TO PROVIDE MICROCREDIT TO THE UNDERSERVED

Service design for providing micro credit to the underserved In association with

Presented by

Sajal Nagwanshi

Guide

Professor Pramod

KhambeteIDC, IIT Bombay

A great learning experience !

Service design for providing micro credit to the underserved | in association

with

About Rang de


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A microcredit firm based on peer to peer lending model

Connecting rural entrepreneurs to like minded investors


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Journey of the project

6Service design for providing micro credit to the underserved | in association

with

Journey of the project

Process followed

Secondary study


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Related firms


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Literature review: Why and how service design ?

Process Representation Production process Material

parameters [explorative, analytical] [depictive, symbolic, enactive] [physical, virtual, ongoing] [tangible, virtual]

Interaction

Design

not significantly explorative, and highly

analytical

Not significantly depictive, highly

symbolic and somewhat enactive

not significantly physical, highly virtual

and somewhat ongoing

not significantly tangible, and highly

virtual

Industrial

Design

highly explorative and somewhat

analytical

Highly depictive, not significantly

symbolic

highly physical, not significantly virtual

and not significantly ongoing

are highly tangible, and not

significantly virtual

Service

design

highly explorative, and somewhat

analytical

Somewhat depictive and highly

symbolic, and highly enactive

highly physical, highly virtual, and

highly ongoing

highly tangible and highly virtual

User study&

observations


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#1 Long waiting period to get loansOn an average, they said it took 3 months

Borrowers

#2 Not able to identify Rang deBorrowers had good rapport with field workers but couldn’t identify Rang de

Borrowers

#3 Scalability of business4/10 borrowers needed higher loan to scale up their business

Borrowers

#5 Sort of closed economySince borrowers would buy from and sell goods to their neighbours, no new money would come into their economy.

Borrowers

#6•There was clear opportunity for borrowers to exchange knowledge amongst themselves.

•Planned gala dinner was not sustainable

Borrowers

Insights fromInvestors


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#1

Insights

The investors didn’t have an intention of monetary gains from the borrowers.

#2

Insights

Those who invested had inclination for social services.

#3

Insights

At their heart they wanted to have a satisfied feeling of making an impact in borrower’s life.

#4

Insights

Rang de’s transparency created trust amongst investors

#5

Insights

Once they started trusting Rang de, investors found new strategies to

1. Refer Rang de to friends and families

2. Invest in borrowers

#6

Insights

Even though investors could get information about borrowers from website, there was no means for borrowers to know about the investors.

#7

Insights

There was a desire for investors to connect to the borrowers.

Insights fromfield worker


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#1

Insights from field worker

They enjoyed a good rapport with all the borrowers. It was due to this the borrowers would confront any problem they were facing.

#2


The field workers would regularly attend workshops organized by Rang de or otherwise to hone their skills and knowledge.

This knowledge was then shared with borrowers

#3


Even though they were highly motivated, they felt that government employees were getting paid more than them for doing less work.

Conclusion


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Streamline their work by avoiding double entry in paper and online portal.

Streamline the process of loan application and disbursal

Empower them to impart knowledge to borrowers

Field worker

To stream line process of loan application and disbursal

To help them establish their business

Create a long term meaningful relationship with Rang de and investors.

Borrower

Create deeper meaningful relationship with borrowers

Co-create value with investors. Increase participation of investors.

Communicate Rang de’stransparency.

Investor

Service ecosystem

&Blueprint


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Rang De Office Visit : Bangalore

Service design workshopCreating service blueprint with Rang de team


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Service ecosystem


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ServiceEcosystem

Service blueprint


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Investor

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Aware Join Use Develop Leave

Getting aware

of Rang de

Registered for

Rang De

Browse

borrowers

Build a

portfolio of

investment

Temporarily or

for a long time.

Invest in

borrowers

Monitoring

borrowers

Auto invest

Borrowers

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Aware Join Use Develop Leave

Got to know

about Rand de

loans

Applied for the

loan

Bought goods Building up

business

Complete one

cycle

Received loan Started

business

Repaying

instalment

Apply for next

loan

Detailed blueprint included in handouts


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Initial ideas


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Assumptions1. The system assumes that all the field partners will be willing to install the infrastructure needed to

execute the ideas.

2. Good internet connection at the village/city where borrowers are located

3. Rang de would be partnering with other service providers who could provide service like transportation of goods, second hand goods etc.

4. It is assumed that the corporate partners would be willing to extend their support for in kind contributions.

5. The borrowers would have a basic phone (voice call & SMS facility).

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Idea 1Sending back the wishes

Idea #1 Send back wishesMotivation

•There was no tangible service evidence for investors after successful repayment of borrowers or after they made investment

•Their motivation was to make a social impact and not 2%

Advantages

•It becomes social object. Borrowers come together to celebrate

•It makes investors happy

•It also becomes a medium through which they can share their happiness and talk about Rang de with their friends and family

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Investor•Aman is a 30 years old working professional. He works in an investment bank. He has recently married and shifted to a new home in Mumbai. In his younger days he used to volunteer for NGOs in college. But now, since the office works takes up a lot of his time he has kept up social work by investing in Rang de. He has been an investor since 2012.

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The field worker arrives at their home and enquires about their well being

He informs that this year Rang de is giving `.100 to every group to make gift for

investors

Soon, the women start spreading this news and discussing about the idea. They

arrange for raw materials to make Laxmi idol and puja thali.... The activity brings all the borrowers together

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The gift arrives on the day of Diwali… He receives the ‘pooja thali’ with a personalised gift card….he scans the QR code

This leads to YouTube video of borrowers in which they express gratitude In the evening when the guests arrive at their home, they discuss about the gifts….

Timeline

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Collecting raw

materialProduction Decorating Packaging Delivering

3 weeks 3 weeks 2 weeks 1 weeks 2 weeks

1st August 23rd October

Idea #2Invest via goods

Idea #2 Invest via goodsThe objective

•The investors can help the borrowers by providing them with goods of their needs.

•The need can be of personal use or for business use.

Motivation

•The loans that borrowers took were also being used for saving money to buy household appliances and goods for business needs.

•It raises their standard of living.

•The impact measured by Rand de team also takes in to account assets owned by person

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Present Description

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Suggested description

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Needs Mobile

phoneInvest via goods

Invest

Borrower’s profile

Borrower

Vegetable

vendorEarthen pot

Cow/buffalo milk

Kirana

Chai/snack

Tailoring

Poultry

Craft

Education

Borrower’s profile

Borrower

Vegetable

vendorEarthen pot

Cow/buffalo milk

Kirana

Chai/snack

Tailoring

Poultry

Craft

Education

Storage,

fridge

Sewing machin

e

Stationary, books, computer

Storage,

fridge,

utensils

Storage,

fridge

Storage,

Utensils

Paints,

moulds

Goods carrier,

storage

Tools, packagin

g material

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Borrower applies for loan

Profile uploaded on Rang de

Invest money

Need assessment: money + goods

Invests via goods

Investor browses the borrowers

His own goods Via OLX (in cities near

by)

FedEx collects goods and

delivers

Borrower accepts

Sets price and

negotiates

Borrower starts business

Repayment starts

Negotiate with seller

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Field partner Field partner

BorrowersBorrowers

Idea#3Linking with corporate

Idea #3 Linking with corporateMotivation

•Companies mandatorily spend 2% of their net profits per fiscal for CSR activities. These kind tie ups become essential in setting up businesses

•To let companies know, their own products and services can be used as CSR activities

•It helps companies reach out to Bottom of the pyramid

•Improves public image

Examples

•Sewing machine for tailoring

•Exhibition platform for craftsmen 58

Corporate investment

Corporate investor

Monetary Infrastructure

Electricity

Goods carrier

Water supply

Training

Internally

Externally

Goods

Mobile phone

Sewing machine

Cold storage/ storage

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Those who have aspiration

to start their own enterprise

would be benefitted

63The girls from Pusad get to learn from the best

beauticians in Mumbai and know about Lakme

products

64After the course, Lakme (HUL) helps these

girls to set up their own beauty parlour….

Idea #4Field worker’s mobile device

Idea #4 Field worker’s mobile deviceA hand held device which helps field worker to be more efficient

Tasks that can be completed by it:

•To create awareness about loans

•Update Passbooks

•To keep record of monthly meeting

•Installment payment record

•Sensing back wishes (Idea #1)

•Browsing through goods (Idea #2)

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While uploading profile•The handheld device can be

set up for conference calls

•Rang de officials at the other

end can check and confirm the

valid borrower

•There would be no time

wasted for the checking

process

Idea #5Gamification of UI

Idea #5 Gamification of UIProblems

•Some investors are not actively taking part

•There are accounts which are inactive for last 2 years

Suggested solution

•Make investing a fun and engaging experience

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Inspiration: Farmville

Idea#5 Gamification of UI

OBJECTIVES

•Make investing a fun and engaging experience

•Use social media and connect to friends

•Can view amount invested and impact made

•Start making strategy for making maximum impact

•Invest via money, goods or service

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Idea #6Field audit with Google glass

Idea #6Objective:

1. Share information with

investors real time.

2. Since most of the investors

might not have time to visit

field, this is a good way to

witness the borrowers

conditionImage source: http://guardianlv.com/wp-content/uploads/2013/12/Google-Glass-Dating-app-script.jpg

Sharing information real time with investors all over the world


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Final concept


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Features of the solution1. Joining conference re-planned as conference between Rang de, field partner, borrowers and

investors

• Creating borrower’s Profile for 1st time as well as repeating borrowers

• Loan approval

• Goods investment

• Business tie up with other service providers

2. Field worker’s mobile device

3. Maps on field worker’s mobile device to keep a tab on houses visited

4. Sharing knowledge with borrowers through field worker’s mobile device

5. Borrower’s sending their wishes to investors

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The new planned joining encounter


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Customer journey map of 2nd Stage: Join (R.D. =Rang de, FW= field worker, JLG= joint liability group)

Sub Stages Awareness

about loan

Doubts &

discussionEnquiry

Decision to

apply

Exchange of

informationUpload info Raise money

Transfer

money

Activitytalk to friends

or FW

talk to friends or

FW

talk to friends or

FW

contact 4 other

like-minded

neighbours

Borrowers visit field

partner office

Profile uploaded

on R.D. website

Promote

borrowers profile

generate group

code &

distributes

money

People

involved

Other

borrower or

FW

Family or

neighbours

Other borrower,

family membersFW, family

Share business

idea, personal info

Conference call

with FW, borrower,

R.D.

Investors, R.D. FW

Goal

To spread

awareness

about the low

cost loan;

to clear doubts of

borrower

to clear doubts of

borrower

To initiate the

loan application

process

R.D and borrower

know each other

better

To initiate money

raising

To raise money

ASAP

To distribute

money to

borrowers

Failure

recovery

FW marks the

houses not

visited.

Follows up

with those not

visited

FW follows up

with those who

have been visited

and have doubts.

Talks to them

about reserved

funds.

FW follows up with

those who have

been visited and

have doubts. Talks

to them about

reserved funds.

FW takes down

their names.

Adds up in

probable

borrower list

Offline meeting if

the internet

connection fails.

The details can

later be sent to RD.

Upload the profile

even if details are

missing, it can be

filled later

Profile status temporary temporary temporary temporary Approved/not Group member Group member Borrower

Tasks on

mobile device

Make a

temporary

profile and

inform RD

Make a temporary

profile and inform

RD

After getting

response from RD

confirm with

borrower

Note business,

goods, loan

needs and

basic info

At the scheduled

date, hold an

interview/ppt

session

Once approved by

RD change profile

status.

Share

presentation on

mobile device for

business lessons.

Once money is

received,

update the

profile as

borrower.

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Customer journey map of “exchange of Information” encounter

ActivityApplicants visit Field

partner office

RD officers give ppt about

loanNeed assessment Approve the borrowers Finance literacy training

Goal

Background study; family

income, house condition

Past business, neighbour's

opinion

Rang de officers share info

about R.D. Loans

To assess need to make

maximum impact

Make profile of borrower;

take picture & 100 words

write up of business

To sensitise them about

Business basics

How? Interview, home visitshare ppt on a google

hangout conference

Rang de officer takes one

on one interview of

borrower

Collect KYC document,

Clear other doubts with

R.D. In conference

give ppt through FW’s

mobile device at their

business site or home

People FW R.D. + FW R.D. + FW R.D. + FW FW

Failure

recovery

Plan for later day, but take

details of people who are

available.

if not through mobile device

or online conference, FW

does it offline

Get details later. Or follow

up later, Get details later

Plan for a later day at their

place, 5 members of JLG

come together.

These activities would be shared live with investors through video conference using google hangouts on air. This would be shared with investors

who are online.

Scenario with wireframes


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ReshmaPatilReshma stays with her

husband and daughter. Her

husband works in a kirana

store. She is ambitious, hard

working and wants to get her

daughter married next year.

One day while talking to Urmila,

a milk maid, she got to know

about Rang de loan. Urmila

had started her business after

taking a loan

She goes back to home and

discusses this with her

husband. He asks her to call

the field worker who gave loan

to Urmila.

Reshma asks Urmila to give

her field worker’s number.

She calls up the field worker

from her husband’s phone and

arranges a meeting next day at

her home.

When field worker arrives next

day Reshma and her husband

ask details about the loan.

Details about money, interest,

business details etc.

The field worker shows them a

presentation about the loan and

it’s benefit. He also shows how

investors in cities contribute

and how Rang de works.

Rang de’s mSevakA mobie Application for the field workers.

The field worker asks if she is

interested in applying in near

future.

He can make a temporary

profile for her.

The field worker takes a

photograph and video of

Reshma for making the profile.

Profile type: Temporary

The field worker takes a video of household condition.

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Profile type: Temporary

He collects basic information

from her and tells that he will

inform Rand de about her

application.

She should be ready for an

interaction with Rang de team

in coming days

The field worker informs Rang de through the interface.

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At Rang de office, the officer

checks out the number of new

temporary profiles.

He assembles all the temporary

profiles of specific field partner

and plans an interview session.

Rang de team member’s dashboardAbout 10 borrowers are selected for each session

Rang de team member’s dashboard

Field worker gets a notification of interview date on his mobile device

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Reshma gets an sms as well as a call about it.

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1

The field worker contacts Reshma and confirms the appointment for interview

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On the day of interview…


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Rang de team member sets up

google hangout. The field

partner is invited to join the

hangout. This is a ‘hangout on

air’ therefore it is open to

public.

Setting up ‘hangout on air’

Once the hangout in air is set

up, the borrowers are

welcomed. Rang de team

members brief them about

Rang de and how the money is

raised.

They give a presentation about

Rang de.

Suggested view of the hangout.

In this session all the investors

and interested people from all

around the world would be able

watch it.

The interview being watched by

people all over the world.

This would emphasise Rang

de’s transparency. Investors

would be able to see what kind

of borrowers is Rang de giving

loans to.

Subsequent to the

presentation, there would be a

one on one interview. It would

be 10-15mins long. This would

be to verify KYC, business

need, loan amount and goods

needed by the borrower.

Any confusion would be sorted

in real time.

After all the individual

interviews, the field worker and

Rang de team decide the

borrowers to be approved.

The profiles are uploaded after

the verification from Rang de.

The participants of the hangout

session get a link of the profile.

New Profile

Quick goods invest feature


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Quick goods invest featureAn alternative way to invest via goods

Meanwhile at field…


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Finance literacy trainingWhile the money is being

raised, field worker indulges in

finance training for the

approved borrowers.

This is a group event, therefore

all the new approved applicants

can join and form Joint liability

group.

The knowledge sourceThe knowledge source has presentations about different subjects that might be useful for borrowers

After about a month…


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Reshma gets a confirmation sms and call from field partner. (sms sent in local language)

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She also gets an offer for a mobile phone she wanted.

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मोबाइल फोन

She also gets an offer for a mobile phone she wanted.

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The field worker visits

Reshma’s house to hand over

the money and discuss other

opportunities.

Profile type: borrower

Records a thanking message for investors

Profile type: borrower

Reshma agrees to buy the phone and set up kiranashop with big bazarThe field worker shows her the mobile phone that is available

After business is set up


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Field worker updates the instalment repayment status

The repayment status is updated real time on the fieldThis would also avoid paper work and double entry in paper and online portal

10 Months later…


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Rang de team realises,

Reshma has been regularly

repaying the instalments.

They send notification to field

worker, if Reshma wants

another cycle of loan.

160Money raising

period

She agrees for a applying once

again for the loan.

The field worker confirms the

request for next loan.

The field worker takes another

video of her household

condition and business.

This highlights the difference

made by the loan and her

earnings.

Reshma records her new

message for loan application.

This time talking about the

changes that have happened

due to loan and what she plans

to do with next loan.

The field worker makes an

entry in Reshma’s profile.

Field worker adds new video to second cycle of loan

This is automatically updated

by Rang de.

Since there is no validation

needed second time, the profile

can be updated easily.

Visual designof mobile App


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Technology considerations


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Field worker’s mobile deviceAn example of such device is

mentioned below.

Lenovo Yoga 10 B8000 Tablet

• `19999

• 10-inch Touchscreen

• 16 GB, Wi-Fi, 3G

• 1.2 GHz Processor

• 5 MP Primary Camera ;

• OS Android v4.2 OS

TV and mic+speakerset for video conf.

1. 32 inches LED TV(HD)`15690

2. Microphone and speaker for

video conference for

borrower’s interview`3000/-

Mobile phone of borrowersMobile phone for borrowers

• Nokia 206 (`3700 or

`1000 second hand)

• Dual SIM

• 2.4-inch LCD Screen

• Alphanumeric Keypad

• 1.3 MP Primary Camera

Evaluation


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Evaluation method1. A video presentation of concept was sent to Rang de team (Including all documents)

2. A survey form was to be filled after going through the concept

3. The survey form was based on 5 point Likert scale and feedback

• It had statement based on the ideas presented on the concept.

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The new planned joining encounter for borrowers

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

It would reduce the overall time of the loan disbursal process for new borrowers.

It would reduce the overall time of the loan disbursal process for Repeating borrower

Strongly disagree Disagree Neutral Agree Strongly agree

The new planned joining encounter•“A portion of the time taken for loan fulfilment is spent in getting the right data about the borrower. This time can certainly be cut down through this concept (as against the current pen-and-paper driven model).”

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Mobile device for the field worker

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

It would ease the load of data entry work of Field worker.

It would increase trust of present investors.

It would create trust in new investors.


Invest via goods

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

It would increase their standard of living.

Borrowers would be willing to accept used goods of investor.

It would reduce time required for setting up borrower's business.

It would help borrowers to expand business and earn more profit in business.


Invest via goods•“…not sure if this is solving any problem of the borrowers with respect to ability to purchase goods. There are other considerations that we have to think about - serviceability, cost of transportation, risk of returns etc.”

•“Usually the selection of an asset goes in parallel with the loan raising process i.e. while Rang De is raising a loan, the borrower may already be deciding what to buy, at what price, from where and from whom. Hence once the loan is disbursed, there may not be much time lost before the asset is purchased.”

•“Some utility goods (like a cell phone) may be useful. But may not apply to many other goods.”

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Joining encounter video conference

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

This will help Rang de team to choose eligible borrower at an early stage.

Sharing the borrower’s joining interview live with investors will build trust of investors

It would help build good relationship between Rang de and borrowers from an early stage.


Joining encounter video conference •“Scalability of the suggestion is doubtful. We may be able to do this for some - maybe for a select few first time borrowers, or for borrowers in a new geographical area or for borrowers for a new partner. Once it is business-as-usual, we may not need this as a mandatory part of the process.”

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Overall responseStatement n Strongly disagree Disagree Neutral Agree Strongly agree Total

It would reduce the overall time of the loan disbursal

process for new borrowers.10 0% 0% 40% 60% 0% 100%

It would reduce the overall time of the loan disbursal

process for Repeating borrower10 0% 10% 20% 60% 10% 100%

It would ease the load of data entry work of Field

worker.10 0% 0% 10% 30% 60% 100%

It would increase trust of present investors. 10 0% 0% 40% 40% 20% 100%

It would create trust in new investors. 10 0% 10% 10% 70% 10% 100%

It would increase their standard of living. 10 10% 0% 30% 60% 0% 100%

Borrowers would be willing to accept used goods of

investor.10 0% 40% 40% 20% 0% 100%

It would reduce time required for setting up borrower's

business.10 10% 10% 20% 50% 10% 100%

It would help borrowers to expand business and earn

more profit in business.10 0% 20% 30% 50% 0% 100%

This will help Rang de team to choose eligible borrower

at an early stage.10 0% 10% 20% 60% 10% 100%

Sharing the borrower’s joining interview live with

investors will build trust of investors10 0% 10% 0% 40% 50% 100%

It would help build good relationship between Rang de

and borrowers from an early stage.10 0% 0% 20% 70% 10% 100%

Thank you !


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SERVICE DESIGN TO PROVIDE MICROCREDIT TO THE UNDERSERVED

Design

Transcript of SERVICE DESIGN TO PROVIDE MICROCREDIT TO THE UNDERSERVED