How data and technology can be used to design and deliver better financial services

1. #Technology, #FinancialSector
& low-income Societies
May 2017
Khayelitsha Barn

2. Discussion points points
• Background to the research
• 5 financial services delivery challenges
Side-bars: Emerging business models

3. Cenfri Activities: Programmes and partners
As theme managers for
FSDA we are responsible
for identifying and
commissioning research
in risk, integrity and
remittances .
Cenfri’s innolab Connect
our research with private
companies looking to
innovate in the financial
services space, with the
ultimate goal of bringing
new, profitable, and
sustainable products to
the bottom-of-the-
pyramid.
Cenfri in partnership with
University of Stellenbosch
Business School Executive
Education offers capacity
building programme in
microinsurance and
national payment systems
for regulation and
providers
MAP is a global diagnostic
and programmatic
framework to support
expanding access to
financial services for the
underserved and
unserved population to
conduct financial lives
more efficiently, increase
income, manage risks and
build up wealth over time
to improve welfare and
impact upon the real
economy.
Insight2impact (i2i) is a
resource centre
established by FinMark
Trust and Cenfri
advancing the use of data
in financial inclusion. i2i is
funded by the Bill &
Melinda Gates
Foundation in partnership
with The MasterCard
Foundation.
.
Risk, Integrity and
Remittances
Cenfri Innolab Capacity Building

4. FINANCIAL SERVICES DELIVERY CHALLENGES

5. • Alternative data sources
(e.g. sensors, mobile call data)
• Digital communication & real time access
(e.g. ICT, Mobile network data coverage)
• Advancements in data analytics
(e.g. predictive analytics, machine learning)

6. Side-bar: Alternative data for credit scoring

7. • Technology enabling online delivery
(e.g. digital brokers, digital platforms for sales,
servicing & advice)
• Access through technology enabled partnerships
(e.g. mobile phone delivery, spazy stores etc.)

8. Side-bar: Informal retailers and financial services
Name: Standard Bank
AccessPoints
Origin: Standard Bank,
Banking group
Started: 2007
No. of agents: 4,000
Name: Yastas
Origin: Gentera, Banking
group
Started: 2012
No. of agents: 3,097
(1,442 BC agents)
Name: Red Qiubo
Origin: Grupo Bimbo,
Bakery FMCG
manufacturer and
distributor
Started: 2013
No. of agents: 75,000
(25,000 BC enabled)
Name: DD-Dedo
Origin: Alpina Productos
Alimenticios, Dairy FMCG
distributor
Started: 2007
No. of agents: 12,000
Name: Zoona
Origin: Mobile
Transactions International,
Payment systems provider
Started: 2009
No. of agents: 700
Name: M-Pesa
Origin: Vodacom Tanzania,
Mobile network operator
Started: 2008
No. of agents: 70,000
(approx. 35,000 informal
retailers)
Name: MTN Swaziland
Origin: MTN Swaziland
Ltd., Mobile network
operator
Started: 2011
No. of agents: 560

9. • New business models allow for a new set
of products and product features (e.g. P2P)
• Bundling of services beyond financial product
(e.g. value added benefits)

10. Side-bar: P2P insurance - TongJuBao
Products include:
• Divorce insurance
• Kidnapping insurance
• Travel, health & vehicle

11. • Remote and personalized support
(e.g. chatbots, digital chat services)
• Iconify interactions
(e.g. mobile applications)
• Monitor and respond to customers in real-time
(e.g. client data analytics)

12. • Leveraging digital infrastructure
reduces marginal cost of delivery
(e.g. digital platforms)
• Digital data and automation allow
for more cost-effective outsourcing
(e.g. digital administrators)

13. InsurTech Review

14. Emerging business typologies in insurance

15. Cenfri (The Centre for Financial Regulation & Inclusion) is a
global think tank that bridges the gap between insights and
impact in the financial sector.
We are driven by a vision of a world where all people live their
financial lives optimally to enhance welfare and grow the
economy.
Our core focus is on generating insights that can inform
policymakers, market players and donors seeking to unlock
development outcomes through inclusive financial services
and the financial sector more broadly.
Thank You!
Please contact us at…
Doubell Chamberlain
E-mail: Doubell@cenfri.org