Product design question

Design a friendly referral system for a loan company.

Practice this question out loud. An AI interviewer asks it, follows up like a real interviewer would, and scores your answer. Type or speak.

What this question tests

Product design for a growth loop in a trust-sensitive financial product, balancing incentive design with fraud risk.

Clarify the goal, new customer acquisition cost reduction or expanding into new borrower segments via referral.
Identify the core mechanism, existing borrowers refer friends or family, both sides receive a reward tied to loan completion, not just sign-up.
Address fraud risk, referral rewards must be tied to a real funded and repaid loan milestone, not just an account creation, to prevent gaming.
Design the experience, a simple shareable link or code, a referral status tracker, and clear reward terms shown upfront.
Consider regulatory constraints, loan referral incentives may be subject to lending regulations depending on the market.
Define success metrics, referral-driven loan originations and referred-borrower repayment rate versus non-referred borrowers.

Ties the referral reward to loan funding and early repayment health, not just sign-up, directly addressing fraud and gaming risk.
Flags the regulatory constraint explicitly, since incentivized lending referrals can trigger compliance requirements in some markets.
Proposes tracking referred-borrower repayment quality, not just volume, since a referral program that brings risky borrowers is a net negative.
Sets a business-relevant metric, cost per acquired loan via referral versus other channels, to judge real efficiency.

Chapters of the AI PM course that teach what this question tests.