Seven questions for a lending product.
Before a launch, a product change or an advisory conversation. Compare your team’s answers on economics, risk and operations, and identify what needs checking.
Question 1 / 7Customer and revenue
What customer need does the product address, and how does it earn revenue?
You can connect the use case, product terms and revenue source, with evidence for each link.
How to use the checklist.
Choose one product, segment and period. Evidence means an answer can be explained and reproduced, not just found in a presentation. The checklist prepares questions; a business assessment requires verification of the underlying evidence.
All seven questions
- What customer need does the product address, and how does it earn revenue?
You can connect the use case, product terms and revenue source, with evidence for each link.
- Who is in the target segment, and how has the applicant mix changed?
Product and risk reports use the same segment and channel definitions. Changes in the customer mix can be distinguished from changes in policy.
- What remains after funding costs, losses, acquisition and servicing?
Revenue and costs use comparable periods and calculation units. Actual results are separated from forecasts.
- How do limits, term and pricing relate to actual product use?
Current rules can be compared with the terms customers receive, what they use and where the journey to disbursement stops.
- Which risk metrics mean the same thing to Product, Risk and Finance?
Each metric has a defined event, denominator, reporting date and loan age. Another analyst can reproduce the calculation.
- Where do manual exceptions change delivery costs and customer experience?
The team can identify the main departures from the standard process, their causes, owners and time requirements.
- What evidence would support stopping, changing or expanding the pilot?
Decision criteria, observation period, data limitations and the decision owner are defined in advance.