Pilot testing process in bank product development

 

Banking products pass various stages before they are launched. One of such stages is pilot testing. This involves taking a sample of the prototype to the target market to test their effectiveness and efficiency. Let's discuss pilot testing process in bank's product development.

1. What's Pilot testing?

Pilot testing refers to making the prototype of the new bank product to a sample target market to see if they need and/or buy the product. It also gives the team more knowledge of the product and ways to improve them to meet the needs of the intended clients. 

By carrying out this test, a market research is initiated. Thereby enabling the pilot testing team to understand users behavior. This will help them advise the rest of the product team on how to enhance the product and to know if it is viable or not. 

2. Ten (10) Pilot testing processes

Below, we explained the ten (10) pilot testing processes as stated by Microsave.

2.1 Composing the Pilot Test Team

The first process of the pilot testing is to organize a team. This team should include at least one employee from various departments including credit, marketing, information technology, operations, audit, and finance.

2.2 Developing the Testing Protocol

Next is to develop a protocol to text this phase. Here, all possible scenarios must be considered to ensure that all aspects of the product are included during testing. For example, if it is a loan product such scenarios may involve defaults and collection methods.

2.3 Defining the Objectives

The objective of the pilot test should be based on the product objective. This should be clear and understandable by all members of the team. The objective might be to provide a loan that micro businesses can utilize.

2.4 Preparing All Systems

Before the team starts testing the prototype with the target client, all systems necessary for the functioning of the product should be in place. 

2.5 Modeling the Financial Projections

A financial projection for the new banking service should be modeled. The model should include key metrics such as portfolio at risk (PAR), write down percentage, the single obligor limit and so on if the product is for loan.

2.6 Documenting the Product Definitions and Procedures

The six process of pilot testing is to document the products definitions and procedures. This includes the function of the products and how it works. It's a control mechanism and how it will benefit clients and the organization. Here, there is no limit to what can be documented as long as it relates to the new product.

2.7 Developing Product Marketing Plans and Materials

The product marketing plans and materials include all features of the new banking service. This should be distributed to the team so as to make necessary documentation during testing. Without this all the pilot testing effort will not yield fruit.

2.8 Training Relevant Staff

Employees involved in the pilot testing should be trained adequately. They should understand what the product entails and who their target clients are. They should be given a format on how to document data collected from the testing phase, so that it can be imported to the overall research document.

2.9 Commencing the Product Test

Here, a date is set for the pilot test. The duration should be exactly the duration of the product. For a loan product, for example, if the loan is for six months then the testing duration must be for the six months.

2.10 Monitoring and Evaluating the Test

Immediately the actual product Res begins, the team lead should monitor and evaluate the process and ensure that it is achieving its objective.