We have already read in our previous blog about the impact of COVID on the need for innovation across all industries and the BFSI (Banking & Financial Services Industry) segment is no exception. Digital has been central to the strategy across Banks and Insurance players, even before the pandemic. The post-pandemic era has only proven how Digital Business models and Lean Operations are front and center to not only the survival but also to the growth of the business in the New Norm.
Indonesia as a market has also been working on various approaches to deal with the onslaught of this pandemic, across various levels. One such example is – OJK, the Financial Services Authority, issued several regulations to provide easy access to funds for the SME customers, such as – allowing customers from SME segments to access loans of up to USD 600,000 (approx), by relaxing the approval norms. While it meant a higher loan volume, it also meant higher risks in terms of loan quality.
Pre COVID, one of our Banking clients was already planning to launch a new Digital Business model, focused on the MSME segment in the market. They were all but at the brink of initiating the process when COVID hit hard. They suddenly found themselves in a place where they need to drive the model forward was critical but the market conditions were such that all the well laid out plans for market research, customer testing, and product launch were invalidated overnight.
While there was a clear and present need in the market for a Digital Platform that would enable the MSME segment to sustain their day-to-day operations, the question was how and where did the winning proposition lie for both parties – both the bank and the customers. The focus here was to target approximately 816,000 Indonesian SMEs and MSMEs and provide them with an integrated digital platform that would address not only their financial needs but also cater to their day-2-day operations, all enabled by data.
Given the challenges created due to COVID, the client teams were constrained in their ability to Understand -> Define -> Design -> Validate -> Pivot, due to the New Norm that followed the pandemic. The team was struggling with effectively managing the New Way of Working and collaboration across themselves, let alone reach out to the target segment or market.
Greyamp, was called in to help navigate this problem statement – Designing and Executing a Rapid Experiment in the New Norm. To address this, we needed to work across and understand the following –
Some of the key challenges we faced while designing this approach was –
Below we elucidate the steps that were taken to overcome the aforementioned challenges and achieve the expected outcomes.
1. Defining a clear Value Proposition for the identified Target Segment –
As mentioned above, one of the key challenges straight out of the gate was to narrow in on the target segment. While the overall market segment was identified – the MSME segment, the question was which specific one to start with. While the initial plan was to run primary research and customer FGDs to understand the customer pain points and needs better, given the pandemic we had to redesign this approach. Here is how we handled it –
2. Design for feedback on Capabilities and Experience –
Armed with the insights obtained during the Agents’ FGD, the hypotheses and DILOs were further refined. The team identified the capabilities and experience needed, which was then designed and built as a product prototype by Greyamp. The entire process of designing the FGDs, conducting the sessions with the agents, and finally refining the insights spanned over 30-40 days.
The prototype created was a click-through wireframe created using invision, which is one of the tools that can be used for creating prototypes. Without any underlying code, the wireframes allowed the team to visualize the Capabilities, the Experience, and how Data would be the glue that brings it all together.
Post multiple iterations and discussions, challenged by a lack of any face-2-face interactions, the prototype was finalized and was now ready for Customer Testing.
3. Successful Customer Co-creation – Customer FDGs
Once the prototype was finalized, the final leg of the exercise was the end-user testing. Here, we worked closely with the client team to define the:
Feedback forms that provided a structured method for the facilitators and observers to record their findings throughout the session
Providing this structure and aligning the team members who were responsible for carrying out the exercise, ensure that:
This process – post the agents’ feedback and designing of the prototype took over 45 days, from designing the structure for customer testing, incorporating all the changes in the prototype, and training the facilitators and moderators to conduct the customer testing.
4. Synthesizing the findings in a coherent manner to draw out concrete conclusions
Post the user-testing, Greyamp assisted the client in data collation, analysis, and visualization that enabled them to visualize the insights in an organized format and understand customer feedback on the identified capabilities, the flow of the platform, and how the platform can help them solve their business needs and challenges.
Furthermore, Greyamp also facilitated the hypotheses validation based on the information received from end-users about their respective business models and provided recommendations on the most suitable roadmaps ahead.
These data points and discussions powered the client team to finalize the features and capabilities for the first MVP, taking into account the business, regulatory, and IT limitations and requirements.
Though COVID limitations posed its own challenges caused by lack of physical meetings, our team was able to cut through those limitations and conduct a successful Rapid Experiment, hence creating significant value for our client.