+ TAILORING FINANCIAL SERVICES
Creating Successful Product & Service Offerings for varied Socioeconomic Backgrounds SCOTTEBALES.COM @SCOTTEBALES

O B J E C
T I V E S Why Financial Inclusion? basics of product development understanding ecosystems entering new markets leveraging segments & personas incentivizing adoption evolving products & service Common Goal

scottebales.com @scottebales Why Financial Inclusion
2.5 Billion Poverty Premium Ripe with Corruption Security Risks Inclusive Markets

scottebales.com @scottebales Goals of Financial
Inclusions Access at reasonable cost for all households to a full range of financial services, including savings or deposit services, payment & transfer services, credit & insurance; Sound & safe institutions with by clear regulation & industry standards; Financial & institutional sustainability, to ensure continuity & certainty of investment; and Competition to ensure choice and affordability for clients.

scottebales.com @scottebales
Early Pioneers

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Early Services

scottebales.com @scottebales Grameen Bank Prof
Mohammad Yunus Group lending Village inclusion funding village infrastructure Danone partnership

scottebales.com @scottebales Portfolios of the
Poor high velocity multiple instruments balancing cash flow resilience for fluctuation planning for life events frequent use of informal instruments

scottebales.com @scottebales Non-Formal Players cash
remittances & loan sharks

scottebales.com @scottebales The Pain Point
Funeral, Medical & Marriage

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Industry friends

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Mobile Money

scottebales.com @scottebales Bank led vs
Telco Led

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Positive Case Studies

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Lessons learned

W H AT D
R I V E S S U C C E S S ?

Product Place People Price Promotion
Position Marketing 6 P’s B A C K T O B A S I C S

** Maslow’s Hierarchy of Needs
Common Price Sensitivity Loyalty Eco-Systems Trust &Tangibility** Poverty Premium Biological Safety Needs Single Use Purchasing Variable Disposable Income Belongingness** Language Skills Technology Skills Entrepreneurship Geographic Spread Source of funds Local Religious National Saving Method Family Model M A R K E T I D E N T I F I C AT I O N People

Turning subscribers into banking clients
People: Research & Identify Market Traits Identify the Community Unit Sample Test Penetration Activities Build a Sustainable mCommerce Community Unit Document & Refine Penetration Approach Follow Natural Cash Flows and re-apply Stakeholder Engagement Penetrate Accessability Control Sustain & Learn Re-Plan Execute Journey S U B S C R I B E R S T O B A N K E D

M O N E Y
I N A L I F E

Which segment and type of
client use P2P payments? Everyone has the potential to use p2p Identify community members that sent money, but either: Pay a premium for basic money transfers Find it inconvenient to send money Understand the movement of money within a community and it’s affiliated communities Migrant workers, both domestic & international provide the most obvious opportunity Use p2p as a customer acquisition opportunity, NOT revenue P 2 P PAY M E N T S

Is it the way to
get users to be continuous users? Adoption of electronic money in the community is key Place: The best entry points are the communities source of funds The largest source of funds is labor markets. Also, the employer of the largest p2p opportunity Positioning: Salary Payments ‘win-win’ for employer and employee But how do you get salary money to remain in the system? S A L A RY PAY M E N T S

O P P O R
T U N I T I E S

How to get the
customer to use the mobile for bill payments, funds transfer, etc? Re-visit market identification data & community cash flows Look for pain-points in current cash services Appeal to the dreams and aspirations of the market Positioning: Perception of attainability Incentivise entire value chain & reward loyalty Promotion: Education, Trust & Awareness are key I N C E N T I V I S E A D O P T I O N

Applying to people with different
background Use the market identification & entry models Find engaged local partners & seek to understand: People Maintain the Product, tailor the Distribution & Positioning Ecosystem Collaboration (Product & Place (Distribution) Model) Visit & Listen to the communities Work with the community on pilots & proposition testing A foreigner learning local language builds a bridge of trust E V O L U T I O N

TAKEAWAYS

Stakeholder Engagement Penetrate Accessibility ControlSustain
& Learn Re-Plan Execute Journey T H E L O N G G A M E Continuous building, measuring and learning

scottebales.com @scottebales The Secret Recipe
CAC Customer Acquisition Cost LCV Lifetime Customer Value

scottebales.com @scottebales The Future ecosystem
focus tiered closed & open loops more push to mobile basic services microtisation extend to microtrade, p2p

scottebales.com @scottebales a shared agenda:
cashless society

y o u r g
u i d e t o m o b i l e s u c c e s s T H E F U T U R E I S M O B I L E b i t . l y / m o b i l e re a d y b o o k

TAILORING FINANCIAL SERVICES w w
w. s c o t t e b a l e s . c o m / f e e d b a c k s c o t t @ s 3 b . c o