Why has the average approval time for Snap Finance's instant financing option increased from 2 minutes to 8 minutes in the past week?

Introduction

The sudden increase in Snap Finance's instant financing approval time from 2 minutes to 8 minutes over the past week is a critical issue that demands immediate attention. This significant slowdown in a core product feature could severely impact user experience, conversion rates, 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)

• Given the sudden change, I'm wondering about recent system updates. Have there been any significant changes to the approval process or underlying systems in the past two weeks?

Why it matters: Recent changes could directly correlate with the performance drop. Expected answer: Yes, a new risk assessment model was implemented. Impact on approach: If confirmed, I'd focus on the new model's performance and integration.

• Considering user segments, has this increase in approval time affected all user groups equally, or are certain segments more impacted?

Why it matters: Helps identify if the issue is universal or specific to certain user types. Expected answer: Higher-risk applicants are experiencing longer wait times. Impact on approach: I'd investigate the risk assessment criteria and their implementation.

• Looking at the timing, I'm curious about any changes in application volume. Has there been a significant increase in financing applications over the past week?

Why it matters: A surge in applications could strain the system, causing delays. Expected answer: Application volume has remained relatively stable. Impact on approach: If volume isn't the issue, I'd focus more on internal system performance.

• Regarding data integrity, has there been any change in how approval time is measured or reported in the past week?

Why it matters: Ensures we're comparing apples to apples and not facing a data anomaly. Expected answer: No changes in measurement or reporting methods. Impact on approach: Confirms the issue is real and not a reporting error, focusing our efforts on actual performance problems.