SERVICE DESIGN TO PROVIDE MICROCREDIT TO THE UNDERSERVED

Servicedesignforproviding
microcredittotheunderserved
In association with
Presented by
Sajal Nagwanshi
Guide
Professor Pramod
Khambete
IDC, IIT Bombay

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

About Rang de
with

Amicrocreditfirmbasedonpeertopeerlendingmodel

Connectingruralentrepreneurstolikemindedinvestors
with

Journey of the project
with

Secondary study
with

Relatedfirms
with

Literaturereview:Whyandhowservicedesign?
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
with

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

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

#3
Scalability of
business
4/10 borrowers needed higher loan to
scale up their business
Borrowers

#5
Sort of closed
economy
Since 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 from
Investors
with

#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 from
field worker
26Service design for providing micro credit to the underserved | in association
with

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

Conclusion
with

31
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’s
transparency.
Investor

Service
ecosystem
&
Blueprint
with

Servicedesignworkshop
Creating service blueprint with Rang de team
with

Service
ecosystem
with

Service
blueprint
with

Investor
38
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
39
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
with 40

Initial ideas
with 41

Assumptions
1. 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).
42

Idea #1 Send back wishes
Motivation
•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
44

45
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.

46
The field worker arrives attheir home and enquires about their well being
He informs thatthis yearRang de is giving `.100to everygroup tomake gift for
investors
Soon, thewomen startspreading this newsand discussing about the idea.They
arrangefor raw materialsto makeLaxmi idol and puja thali.... The activity brings all the borrowers together

47
The gift arriveson the day of Diwali… He receivesthe ‘pooja thali’ with apersonalised giftcard….he scans theQR code
This leads to YouTube video of borrowers in which they
express gratitude In theevening when theguests arriveat their home,theydiscuss about thegifts….

Timeline
48
Collecting
raw
material
Production Decorating Packaging Delivering
3 weeks 3 weeks 2 weeks 1 weeks 2 weeks
1st August 23rd October

Idea #2 Invest via goods
The 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
50

Suggested description
52
Needs Mobile
phone Invest via goods
Invest

Borrower’s
profile
Borrowe
r
Vegetab
le
vendor
Earthe
n pot
Cow/
buffal
o milk
Kirana
Chai/
snack
Tailor
ing
Poultr
y
Craft
Educat
ion

Borrower’s
profile
Borrow
er
Vegeta
ble
vendor
Earthe
n pot
Cow/
buffal
o milk
Kirana
Chai/
snack
Tailor
ing
Poultr
y
Craft
Educat
ion
Storag
e,
fridge
Sewing
machin
e
Stationary,
books,
computer
Storag
e,
fridge
,
utensi
ls
Storag
e,
fridge
Storag
e,
Utensi
ls
Paints
,
moulds
Goods
carrie
r,
storag
e
Tools,
packagin
g
material

55
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

56
Field partner Field partner
BorrowersBorrowers

Idea #3 Linking with
corporate
Motivation
•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

61
Those who have aspiration
to start their own enterprise
would be benefitted

63
The girls from Pusad get to learn from the best
beauticians in Mumbai and know about Lakme
products

64
After the course, Lakme (HUL) helps these
girls to set up their own beauty parlour….

Idea#4
Field worker’s mobile device

Idea #4 Field worker’s
mobile device
A 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)
66

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 #5 Gamification of UI
Problems
•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
69
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
70

Idea#6
Field audit with Google glass

Idea #6
Objective:
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
condition
Image source: http://guardianlv.com/wp-content/uploads/2013/12/Google-Glass-Dating-app-script.jpg

Sharinginformationrealtimewithinvestorsallovertheworld
with

Final concept
with 74

Features of the solution
1. 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
75

The new planned
joining
encounter
with 76

77
Customer journey map of 2nd Stage: Join
(R.D. =Rang de, FW= field worker, JLG= joint liability group)
Sub Stages
Awareness
about loan
Doubts &
discussion
Enquiry
Decision to
apply
Exchange of
information
Upload info Raise money
Transfer
money
Activity
talk 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 members
FW, 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
Make a temporary
profile and inform
RD
After getting
response from RD
confirm with
Note business,
goods, loan
needs and
At the scheduled
date, hold an
interview/ppt
Once approved by
RD change profile
status.
Share
presentation on
mobile device for
Once money is
received,
update the
profile as

78
Customer journey map of “exchange of Information” encounter
Activity
Applicants visit Field
partner office
RD officers give ppt about
loan
Need 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 visit
share 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
with 79

Reshma
Patil
Reshma 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.

Rangde’smSevak
A 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.

The field worker takes a video of
household condition.
95

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.
98

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.

Rangdeteammember’sdashboard
About 10 borrowers are selected for each session

Field worker gets a notification of
interview date on his mobile device
104

Reshma gets an sms as well as a call
about it.
105
1

The field worker contacts Reshma and
confirms the appointment for
interview
106

On the day of
interview…
with 107

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.

Quick goods
invest feature
with 125

Quickgoodsinvestfeature
An alternative way to invest via goods

Meanwhile at
field…
with 135

Finance
literacy
training
While 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.

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

After about a
month…
with 139

Reshma gets a confirmation sms and
call from field partner. (sms sent
in local language)
140

She also gets an offer for a mobile
phone she wanted.
141
मोबाइल फोन

She also gets an offer for a mobile
phone she wanted.
142

The field worker visits
Reshma’s house to hand over
the money and discuss other
opportunities.

Recordsathankingmessageforinvestors

Reshmaagreestobuythephoneandsetupkiranashopwithbigbazar
The field worker shows her the mobile phone that is available

After business
is set up
with 155

Fieldworkerupdatestheinstalmentrepaymentstatus

Therepaymentstatusisupdatedrealtimeonthefield
This would also avoid paper work and double entry in paper and online portal

10 Months later…
with 158

Rang de team realises,
Reshma has been regularly
repaying the instalments.
They send notification to field
worker, if Reshma wants
another cycle of loan.

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.

Fieldworkeraddsnewvideotosecondcycleofloan

This is automatically updated
by Rang de.
Since there is no validation
needed second time, the profile
can be updated easily.

Visual design
of mobile App
with 167

Technology
considerations
with 173

Field
worker’s
mobile
device
An 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+speaker
set 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
borrowers
Mobile 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
with 177

Evaluation method
1. 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.
178

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).”
180

Mobiledeviceforthefieldworker
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.

Investviagoods
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.”
183

Joiningencountervideoconference
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.”
185

Overall response
Statement 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 borrower
10 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 investors
10 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 !

with 187

SERVICE DESIGN TO PROVIDE MICROCREDIT TO THE UNDERSERVED

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