Introduction

This document presents a strategic product proposal for "Loan Forward", a new lending feature under development at Forward Fintech. It outlines the core business challenge, key discovery questions, underlying assumptions, testable hypotheses, MVP definition, user stories, and success metrics. In addition, it includes a financial modeling framework designed to assess the feasibility of achieving a $6 million investment payback within a maximum of three years.

Part 1: Product Discovery, Hypotheses & MVP Definition

Problem Statement

Core Challenge:

60% of Forward Fintech’s current user base believes their pension savings are not growing fast enough or earning sufficient returns, leading to concerns about long-term financial security and contributing to a high churn rate.

Strategic Discovery

Open Questions

These were the foundational questions considered during problem discovery:

1. Target Segment Focus:
   • Are we prioritizing the informal sector?
   • How are income patterns validated?
   • Which social classes or professions are included?
2. Launch Market Selection:
   • Which country should pilot the MVP? (e.g., Kenya for its strong mobile money ecosystem)
3. Pension Account Custodianship:
   • Are pension funds held by Forward Fintech or a partner bank?
   • Are savings balances interest-bearing?
4. Competitor Landscape:
   • How do we differentiate from micro-lending and P2P platforms?
5. Default Risk & Mitigation:
   • What is the default rate by user segment and region?
   • What insurance options can offset risk?
   • Will defaults impact retirement savings?
6. Regulatory Framework:
   • Local regulations around:
     • Lending from pension savings
     • P2P lending models
     • Borrower risk disclosures and dispute mechanisms
7. Borrower & Product Design:
   • Will borrowers include individuals, MSMEs, or both?
   • What is the borrower fee structure (application, origination, late fees)?
   • What loan review process will be implemented (manual, automated, or hybrid)?
   • Should we adopt a lending corridor model (interest paid by borrower vs. lender fee)?
8. Lender Investment Options:
   • Should members invest via:
     • Predefined risk portfolios
     • Manual borrower selection
     • Certificate-like fixed-term deposits?
   • Can members customize their lending criteria (e.g., ROI expectations, risk appetite)?

Assumption: Where data was not available, assumptions were made and documented for transparency.