Business Financing: Optimizing Products for SMBs

As the lead researcher, I investigated how macroeconomic factors like inflation and economic pressures affected loan repayment behavior in Kenya, with a particular focus on the role of Fuliza and other mobile lending platforms.

Through a combination of surveys with over 2,000 Tala users and in-depth interviews, I identified key drivers of repayment behavior and provided insights that helped improve Tala’s repayment process, resulting in a 10% increase in repayment rates.

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BILL Overview | Problem Statement | Methods | Insights | Recommendations | Impact | Lessons Learned | Contact

What Does BILL Do?

BILL is a financial automation platform that helps small and midsize businesses (SMBs) manage their payables, receivables, and overall cash flow. By streamlining core financial operations, BILL enables businesses to save time, stay organized, and make smarter financial decisions.

As the lead researcher for the Invoice Financing product, I conducted foundational research to understand how SMBs manage delayed payments and short-term cash flow needs. I was also responsible for usability testing and prototype validation, working closely with product managers, designers, engineers, and go-to-market teams to guide early product development and improve the customer experience.

Research Process

Generative Research:

  • Objective: Identify financial pain points and challenges in managing cash flow, particularly around invoice financing.

  • Methods: Interviews with small business owners to understand their borrowing behaviors, needs, and challenges.

  • Findings: High interest rates and unclear loan terms were significant barriers for SMBs in adopting financing products.

Usability Testing:

  • Objective: Evaluate how users interact with the prototype and identify usability issues.

  • Methods: Conducted usability tests with 5-7 customers, analyzing their experience with the prototype through task-based scenarios and thinking aloud methods.

  • Findings: Confusing terms and difficult navigation were identified as major pain points. These insights were used to streamline the information hierarchy and improve the product flow.

Key Insights & Recommendations

Key Insights:

  1. Complex Loan Terms: SMBs struggled with understanding repayment terms, particularly regarding fees and the total amount due.

  2. Financial Product Confusion: Participants had difficulty differentiating between invoice financing and other types of business loans.

  3. Navigation Barriers: The user flow was not intuitive, with participants reporting confusion over how to access key information and submit applications.

Recommendations:

  1. Simplify Loan Terms: Redesign loan terms and payment information to make it more user-friendly and transparent.

  2. Improve Product Clarity: Use clear labels and explanations to differentiate invoice financing from other loan products.

  3. Refine User Flow: Streamline the information hierarchy and ensure that users can easily navigate between sections of the prototype.

Impact on Product Strategy

Led Research for Credit Product Launch: Conducted generative and evaluative research, including surveys, to launch a credit product for sole proprietors and micro-businesses, generating $4 million in annual revenue.

Reduced Churn: Decreased customer churn by ~17% by optimizing the loan application process for repeat users through A/B testing and moderated interviews.