1. Critically evaluate both concept cards developed by LDC separately. Are these concept card
messages effective?
InstaMoney:
Problem identified:
LDC started receiving requests from its personal loan borrowers for smaller-ticket loans in the
range of ₹5,000–₹10,000. Based on this feedback, LDC conducted internal research on its
15,000 personal loan borrowers. The research identified a unique borrower segment: lowsalaried borrowers with monthly salaries of approximately ₹12,000. The average loan size
requested by this segment was ₹8,500 with a maximum loan request of ₹20,000.
This low-income earning segment was apparently unserved.
Solution suggested:
The solution to the problem was to offer a product that would meet the needs of this segment.
A smaller loan ticket size from a minimum of Indian Rupees 5000 to a maximum of 20,000.
The product was a customized product designed especially for the target market whose needs
were left unfulfilled. The product was called InstaMoney.
Working of InstaMoney
The LDC product team decided to digitize all steps of the customer journey and charge
processing fees. It created five major modules on the InstaMoney technology platform, based
on the journey of customers who signed up and received loans from InstaMoney

initial app visits by potential customers;

user onboarding, during which prospective borrowers uploaded their loan documents;

loan assessment, which included the verification and selection of quality borrowers for
the investor–borrower matching system;

a repayment system, which sent borrowers reminders about payments due and
deadlines;

a borrower query system, which resolved queries using email and chat bots.
LDC reduced the time it took for a customer to complete the journey to 1 day as compared to 3
days which is industry standard.
There was also an assessment fee of Indian Rupees 199 charged for the servicing related to
verifying and checking the customer credit scores. A delay fee was also charged if the borrower
failed to pay on the scheduled time. The loans were short-term typically of tenure of 3-5
months.
LDC introduced the set-up of mapping one lender to multiple borrowers with a maximum limit
of lending ₹500 to a single borrower. The lender could lend to multiple borrowers at the same
time. This solved the problem of loan default.
InstaMoney Concept card
The concept card of InstaMoney indicated the main concept behind the product it highlighted
how this product was India’s fastest online loan approval App. And also displayed a visual of
what the App will look like, it could simply connect with your Facebook account or your Mobile
number. The concept card also highlighted that you can get a loan anywhere and from
anywhere within 2 hours and without the hassle of physical documentation.
Kwik Money
Problem identified
The only problem was that the people believed peer-to-peer platforms to be untrustworthy so
due to lack of trust many were hesitant to use any PSP platforms.
Solution suggested:
The solution to this problem was suggested that the field executives to physically go and collect
the documents in 1 to 2 days. This was named as Kwik Money for the target market which was
also the low-salaried borrowers with monthly salaries of approximately ₹12,000.
Kwik Money Concept card
The Kwik Money concept card highlighted that you can get a loan in emergency situation within
2 days and up to Indian Rupees 20,000. LDC field executives will personally visit your doorstep
to register and collect the documents within 2 days. This eliminated the factor of
untrustworthiness. It also gave visual representation of how the product will look like.
Conclusion
These concept card messages are effective as they provide the main concept behind each
product. It gives little detail about the mechanism of the products will work The visual
representation gives an insight into what the product offerings are at first glance.t also enables
to compare the two concepts and weigh the pros and cons of each product separately so as to
help the customers to make an informed decision.
2. Which concept card should LDC advance to the product prototype testing stage and why?
In my opinion, LDC should advance with InstaMoney because of following reasons:
1. InstaMoney digital app: Technology is being adopted by youth and other age groups as
well, day by day. In this modern era, the need for online and digital platforms is
increasing, as the use of mobile phones is increasing so does the need for digital apps.
So, InstaMoney app is a suitable product that fulfills the need of the customers (male
and females alike) and does so by incorporating the use of modern technology as it is
the future of any business.
2. Cost Effective: InstaMoney app is cost effective as there is no need of field executives to
go and look out for customers and collect documents from them. Borrowers were
encouraged to sign up on the app and fill out requisite eligibility information.
3. Less marketing cost: As the target audience was tech-savvy and millennials so they were
already on many digital platforms. There would be next to no need for traditional
marketing. Money could be saved by marketing the product on digital platforms like
Facebook, Instagram etc.
4. Less time-consuming: InstaMoney takes about two hours to advance a loan to a
borrower given the requirements are fulfilled. Life these days is very fast paced so
people nowadays look for services that are instant.
5. Accessibility: As this segment of customers was mostly living in the smaller regions of
the country where there were more difficulties and less resources to acquire a loan.
InstaMoney could make it possible to access loan from any region of the country.
6. Less competition: Less companies had entered the low-income salaried market of
borrowers because of many limitations and riskiness. With customized product offering
it was possible to gain large market share and generate profits.