Sizing Home Loan Advisor Adoption of a Pay-Per-Use Loan Recommendation Tool

A US retail bank is rolling out a new software tool for its home loan advisors. An advisor enters a customer's financial details, such as income and expenses, and the tool recommends the loan products that suit that customer. The tool carries a license fee for each use. Estimate how much the bank's home loan advisors will take up the tool. You may make as many assumptions as you need; state each one. ```hint Two parts of uptake Separate how many advisors use the tool at all from how often each of them uses it, and ask where in that chain a charge on every use bites. ``` ### Clarifying Questions - Does "uptake" mean the share of advisors who use the tool, the number of billable uses a year, or both, and for the first year or once usage settles? - Who bears the per-use fee: a central budget, each branch, or the advisors themselves? - Is the tool optional, or will the bank require it for every application? - Does one customer count as a single use, however many times the advisor reruns the recommendation? ### What a Strong Answer Covers - A defined uptake measure and time horizon, agreed before any arithmetic - An equation that separates how many advisors adopt the tool from how often each one uses it - Advisor segments with different usage, each assumption labeled and given a rationale - Explicit treatment of how the per-use fee, and who bears it, shapes usage - Correct arithmetic, a sanity check against loan volumes, and a range naming the inputs that move it most ### Follow-up Questions - What would you measure in a pilot branch to replace your weakest assumptions? - If the bank wanted to maximize usage, would you change how the fee is charged, and what would that cost? - How would your estimate change for a small regional bank rather than a national one?