Why has the approval rate for Kredivo's 30-day financing product dropped by 15% in the past week?

Introduction

The recent 15% drop in Kredivo's 30-day financing product approval rate is a critical issue that demands immediate attention. This unexpected decline could significantly impact user satisfaction, revenue, and overall business performance. To address this problem effectively, I'll employ a systematic approach to identify the root cause, validate our findings, and develop both short-term and long-term solutions.

Step 1

Clarifying Questions (3 minutes)

• Considering the sudden drop, I'm wondering if there have been any recent changes to our credit scoring model. Have we implemented any updates to our risk assessment algorithms in the past week?

Why it matters: Changes in credit scoring could directly impact approval rates. Expected answer: Yes, we updated our risk model last week. Impact on approach: If confirmed, we'd focus on analyzing the new model's performance and potential unintended consequences.

• Given the specific timeframe, I'm curious about any marketing campaigns or promotions that might have attracted a different user demographic. Have we run any new customer acquisition initiatives recently?

Why it matters: A shift in user demographics could affect overall approval rates. Expected answer: We launched a social media campaign targeting younger users. Impact on approach: If true, we'd investigate the approval rates for this new segment separately.

• Thinking about external factors, I'm wondering if there have been any significant economic events or policy changes in our target markets. Has there been any notable financial news or regulatory updates in the past week?

Why it matters: External economic factors could influence users' creditworthiness or our risk assessment. Expected answer: No major economic events, but there's been discussion about potential regulatory changes. Impact on approach: If confirmed, we'd need to assess how anticipation of these changes might be affecting our approval process.

• Considering potential technical issues, I'm curious if our systems have been functioning normally. Have we experienced any outages or performance issues in our approval pipeline recently?

Why it matters: Technical glitches could lead to incorrect rejections or incomplete applications. Expected answer: There was a minor server issue two days ago, but it was quickly resolved. Impact on approach: If true, we'd need to investigate whether this issue had any lasting impact on our approval process.