So, after our first week orientation and diving into the first week of actual class, Matt’s request is below. The first research plan I (with Kelsey) have created. I feel as though there are quite a few benefits to creating a solid plan I truly didn’t think about in our first run through of the process. It helps you truly guide the research in the way it should be going, but also plan for the unplanned. Having the basic outline of questioning and understanding the scope of what we will be researching makes attempting to find and locate potential interviewees much more successfully. Though I haven’t made an attempt to contact anyone yet, I do have a clear picture of those I would like to have participate in our research. Understanding the focus and method and having something physical to have a participant do seems quite valuable as well. In this case specifically there are quite a few opportunities to be shown things, but to have the participants create a physical representation of their timeline or even having a physical written understanding for the first time. Looking over what we have, it seems pretty rough, but I guess it is supposed to? I think the worry I have with the process is truly going to be approaching the people and trying to gain such intimate knowledge about their lives. I understand the value of the research but getting there for me and getting comfortable is going to be something slightly difficult to overcome. Also, some of the people in general we are going to approach seem daunting and like they would be unwilling to talk to us.
Overall I think having a refined and stated focus will help keep the discourse on track and guide a more well rounded conversation about the issues at hand and it will also help to formulate a rough outline in case the conversation stagnates or needs to be poked or prodded back on track. As for now, I feel confident in the plan but worry on my part in the execution and hope the plan and the data produce something worthwhile.
Design Research Plan
Research Objectives:
– To gain new insight into the world of payday and short-term money lending.
– To understand the emotional, mental, or physical steps that lead to considering or taking a payday/short-term loan and those steps attached to paying it back.
Focus and Topics
The focus of this research is based in the world of short term money lending and the baggage that goes along with it; not only for the person taking the payday loan but also for the family, lender, and the principal funding the lender.
Activities and Method
This design research program will utilize Contextual Inquiry as a primary research method. Design
researchers will observe lenders and borrowers in the lending office and clients in their homes to see what pressures, if any, there are pushing them towards a payday or short term loan. The research will take us into neighborhoods and into people’s places of work for artifact walkthrough to detail any physical or digital tools used and will focus on the following activities:
1. The waypoints the borrower goes through in their journey not only towards borrowing but also to repayment of the loan.
2. Understanding the mindset one will enter before deciding to take a payday loan.
3. How people form budgets and plan according to known costs and other unforeseen costs.
4. How long people plan their budgets for.
5. How people work, as a community, to support one another during times of need.
6. How lenders decide whether or not someone is “worthy” of receiving a payday loan.
7. Understanding lending criteria and repayment plans (i.e. interest rates/timeframe/payment schedule).
8. Understanding the potential vested interests the lender must balance when dealing loans.
9. Find artifacts relating to the loan process and seek to understand them.
Participants and Context
PARTICIPANT ROLE IN LOAN PROCESS AGE EMPLOYMENT STATUS EDUCATION COMPLETED Familial Status
1 Borrower 18-25 Yes GED-HS Diploma any
2 Borrower 26-35 Yes College Any
3 Borrower 36-45 Yes GED-HS Diploma Any
4 Borrower 46+ Yes College/+ Any
5 Title Loaner Any No N/A Any
6 Banker Any Yes N/A Any
7 Lender Young Yes N/A Any
8 Lender experienced No(preferable) N/A Any
9 Child to Borrower Any Any
10 Interested Minor? -18 Probs. None Any
11 Member of the Finance Commission of TX Any
12 Big Time Lender (business) 18-55 Yes College(preferably graduate) Any
13 Law Maker (house/senate rep) Any Any
14 Interested recipient Any Any
15 Uninterested party any any
2. Session Details: Each participant session will be at least 120 minutes, conducted in individual’s
homes or place of work; whichever is preferred. Could also be conducted in normal banks or in
institutions where title loans are processed
Schedule
The research will commence immediately, beginning after the receipt of this proposal with a tentative completion date of 9.6.2016 with weekly or bi-weekly check-ins as needed.
We will schedule with individuals as necessary and working in the various industries associated with lending; the recipients and others beyond effected by the process.
Discussion Guide / Script
Introduction: Hi, my name is {}, and we’re conducting research in short-term, title loans and other lending practices to more fully understand the process around both taking out a loan and giving one out. What I’m hoping we can do today is ask you some questions about your experience, and then have you show us some of the things that help you in your financial process. We may ask you to show us some things, or to show us around your house and maybe even ask to try something you’re doing. If at any time you don’t feel comfortable with what we’re asking, just let us know.
Use some humor to introduce and explain informed consent form as well as recording and photos.
Before we begin, if you don’t mind signing this informed consent form, it’s basically just says that we won’t use any information you give us outside of the basis of our research.
Foundational Interview: (15-30 mins depending on time allowed) During this portion we will build a relationship with our interviewee, talking about their volition and their understanding of the loan process. Hopefully gaining insight into why they would be taking or lending, including any external motivations. We will seek to gain a deeper understanding of the lives and circumstances at work within this financial sector, as well as finding the information given and understood and any artifacts relating to the process i.e. loan terms, bills, invoices, statements, etc.
Foundational Interview Questions:
Other or Uninterested party:
– What negatives are there for title or short term loans to borrowers?
– What type of loans have you taken?
– If you needed money immediately, how would you get it?
– What does your budget look like?
– What type of safety net do you have in place for unplanned expenses?
Borrower:
– What is your budget like?
– How do you plan for upcoming expenses? What about unplanned ones?
– What amount, if any have you borrowed for a short term or title loan?
– What was it like paying it back?
– What are the terms of the loan you took out? (can you show me)?
– How do you make payments on the loan? (How often as well)
– What led up to you taking this type of loan?
– What was the experience in the office actually like? Were there any other pressures placed on you during the loan process? What if any?
– Did you explore any other options before taking the loan?
– How many times have you taken a loan of this type?
– How confident are you in being able to repay this loan?
– What, if anything, did you have to leverage for this loan? How do you deal with that?
– What, if any, additional difficulties have taking this loan created in your life or financial situation?
Lender:
– What are your repayment expectations or plans offered?
– What type of people come here on a day to day basis?
– How did you get into the business of title loans/short term loans etc.?
– How do you feel about what you do?
– What about the industry as a whole and your role in it?
– How often do you have borrowers missing payments or defaulting?
– What is your background prior to working in finance?
– What is it like doing this job?
– What does your personal budget look like?
Normal Banker:
– What type of short term options does your establishment offer?
– Can you explain what the difference between title loaning and backed lending is?
– How often do people come in looking for short term loans versus long term?
– Why are there not more short term, smaller amount of lending terms?
– What is blocking this type of lending?
– Would there be a situation you could conceive of where you would consider this route of lending personally?
– What does your personal budget look like? How do you plan for unplanned expenses?
– What are the best practices to stay away from or get out of a rut caused by one of these loan types?
– When you think about past financial policies as compared to those now, can you see anything leading to more predatory practices than previously?
Financial Commission Member / State Rep:
– What, if any, legislation is in progress to protect people from predatory lending practices?
– Are there any interests or pressures placed on you to encourage this to go on?
– What does the market, as far as you are aware, for these loans look like?
– What type of practices are involved in the lending processes?
– What safeguards are there in place to help people placed in situations such as this?
– How do you think we could better prevent people from falling prey to predatory lending practices?
– What types of literature is there for people to gather information on financial options or lending practices?
– When you think about past financial policies as compared to those now, can you see anything leading to more predatory practices than previously?
Reflection Diagram
Borrower:
In front of you is a blank timeline, could you break down the circumstances or events that led to the current financial situation? How do you keep track of your progress towards financial goals or repayment?
Loaner:
Can you draw the flow of money for me, but detailed beyond the simplistic ideal of from lender to borrower to lender? Can you show me how your interest compounds?
Texas Commission//Senator or State Rep:
Given a blank blocked graph, ask to show or represent the influence from financial institutions on state legislature surrounding short-term, title loans, and other high interest loan practice.
After completing the diagram, speak with the participant to see if this is an acceptable route or if these are normal practices or avenues followed by these lending practices.
What is different from this than how you would track normal lending?
Can you see a reason for any deviation?
Post Diagram Reflection:
Borrower:
Outline steps towards repayment or steps to help prevent this type of situation in the future. Not only steps being taken, but steps considered or steps that may be unattainable.
Next step: Have borrower add any additional steps they may now consider necessary from before or during the process they should have considered. Have them explain as they are doing so as to understand better.
Loaner:
After completing the initial money flow, see if there are any steps they would add, remove or change up. Ask them to describe while doing.
Commissioner:
Ask them to create again, but create the graph as it should be based on our government, have them trace over in a different color to show any deviation from where power should rest financially or to make this influence.
Provocation Exercise:
[create cards with images that could evoke emotions]
Borrower:
– Thinking back to when you initially needed the money, how did you feel at that point?
– When you think about your current situation, what do you experience then?
– When considering your future situation or financial troubles, what do you anticipate?
Lender:
– When thinking about the people in the past that have come to you, what is that experience like?
– When you think about what you’re doing now and the people you interact with daily, what is this experience like?
– When considering your future clients or future work, how do you anticipate you will feel then?
Commissioner/Banker/Rep:
– When thinking about past people or situations surrounding predatory lending, how does this affect you?
– When thinking about the current situation of the lending practices, what do you experience?
– When considering the future of lending practices and loans, what are your expectations?
Home/Store Tour Exercise:
Borrower:
– Show us how you remind yourself of upcoming payments due or bills due for your home. Explain to us how you pay them and show us if possible.
– What is in your checkbook? Do you use online banking? Show me how you get your banking information and check the flow of your money.
– What’s in your phone? Do you use this for any tracking or banking? Show us. How often do you check?
– Can you show me your plan for short and long term financial stability? How do you make this? How did you come to these plans? Did you do it by yourself?
– Collaboration: Is this a personal burden, or was it cosigned? Show us your budget and show us your checkbook, how do you access these?
– How do you get information on other options for your financial situation?
Lender (in store):
– Show us your ledger, how do you keep track of people’s due dates and amounts owed?
– How do you factor in the interest? Is the interest static or can it change? Can you show me?
– How do you get people to come in? Is there any need for advertisement? Can you show me your website?
– Do you keep track of people’s reasons or information on their loans? Where, how?