Why has the average time to disburse funds for Lendingkart's working capital loans increased from 24 hours to 72 hours in the last quarter?

Introduction

The recent increase in Lendingkart's working capital loan disbursement time from 24 to 72 hours is a critical issue that demands immediate attention. This tripling of processing time could significantly impact customer satisfaction, competitive advantage, and overall business performance. I'll approach this problem systematically, focusing on identifying the root cause, validating hypotheses, and developing both short-term fixes and long-term solutions.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might have been a recent system change. Has there been any significant update to our loan processing software in the last quarter?

Why it matters: System changes often lead to unexpected performance issues. Expected answer: Yes, a new risk assessment module was implemented. Impact on approach: If confirmed, I'd focus on technical integration issues.

• Considering the metric definition, I'm curious if there have been any changes in how we measure disbursement time. Has the definition or measurement process for this KPI changed recently?

Why it matters: Ensures we're comparing apples to apples in our analysis. Expected answer: No changes in metric definition or measurement. Impact on approach: If unchanged, we can rule out measurement discrepancies.

• Given the magnitude of change, I'm wondering about external factors. Have there been any significant regulatory changes affecting the lending process in the last quarter?

Why it matters: Regulatory changes can dramatically impact processing times. Expected answer: Minor updates, but nothing major. Impact on approach: If confirmed, we'd need to assess compliance adaptations.

• Thinking about user segments, I'm curious if this increase is uniform across all borrower types. Are we seeing this 72-hour disbursement time consistently across different loan amounts or borrower profiles?

Why it matters: Helps identify if the issue is systemic or specific to certain segments. Expected answer: The increase is seen across all segments, but more pronounced in larger loans. Impact on approach: Would focus on scalability issues in our process.