1 / 22

WSBI programme

WSBI programme. to double savings accounts at members. WSBI General Assembly Berlin, 13 June 2013. Ian Radcliffe ( Programme Director). The Mass Retail Banking Market you should target are the unbanked poor and there are 2 ½ billion of them. ”.

yvonne
Download Presentation

WSBI programme

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. WSBI programme to double savings accounts at members WSBI General Assembly Berlin, 13 June 2013 Ian Radcliffe (Programme Director)

  2. The Mass Retail Banking Market you should target are the unbanked poor and there are 2½ billion of them ”

  3. DoublingSavings Accounts – a world of experiences … Al Barid Bank LienViet Postbank PT Bank Tabungan Negara Postbanks: Uganda, Kenya, Tanzania, Lesotho, S. Africa Sonapost Sistema Fedecrédito

  4. DoublingSavings Accounts – varyingunbankedpotential Burkina Faso: Onlyone-in-sixhouseholdsbanked Indonesia: 140+ million to bank South Africa: Onlyone-in-sixhouseholdsstillunbanked Lesotho: < 1 mnadults unbanked

  5. DoublingSavings Accounts – different levels of poverty Morocco/El Salvador: +/- 50% households free of poverty Burkina Faso/Tanzania: 95% and more poor/ near-poor

  6. KEY FINDING No1 Despite differences the poor/near-poor always dominate the unbanked Best-off threecountries (220 millionadults) Poorestfourcountries (78 millionadults)

  7. KEY FINDING No1 Despite differences the poor/near-poor always dominate the unbanked Best-off threecountries (220 millionadults) Poorestfourcountries (78 millionadults)

  8. KEY FINDING No1 What does allthismean? • In poorercountries: • The poor are (notsurprisingly) the massmiddle market • The extreme poordominate but there are still a lot of unbankedmoderately/near-poor • Andwithin the unbanked, poorhouseholdersdominate • In better off countries: • The moderately/nearpoornowabsolutelydominate the unbankedmassmiddle market • Unbankedhouseholds/householdersratherless significant • Because the biggestunbankedgroup are mostlyyoungthirdadultsstill living in the parental home • These need a specific marketing strategy

  9. Populationprofilesandspending power defineaffordability … and everything in between Countrieswhere 80% of peoplereally do have <$1 tospend per dayand the average is $2 Countrieswhere half the population is off the scaleand the average is $16

  10. How much the poor have tospendvarieshugelyby country … Whereas in better off countries it means having +/- $2-3 per day In poorercountriesbeingpoorcanmean living on +/- 75 actual cents per day …

  11. How much the poor have tospendvarieshugelyby country We can now start togeneralise the framework

  12. KEY FINDING No2 The affordabilityenvelopeeases in better-off countries but it stays tight • The challenge is how to cover the cost of +/- 5 transactions per month within this envelope

  13. KEY FINDING No2 What does allthismean? • In poorercountries: • What the target poor/near-poormightapparently have tospend on fees per month is a day’s living forsomeone • In many cases this is goingto have tobe shared withother financial service suppliers (mobile operators, informal, etc.) • A safer assumptionwouldbetothink of +/- 60 cents in a monthto do two or three transactions andbuildfromthis • In better off countries: • The affordabilityenvelopeeasesand the experience of payingforformal financial services grows • The key point is to load charges on transactions the client expects to pay for and get charges off saving • A safe assumptionwouldbe a dollar a month

  14. Fitting resources to the market – networkstrategy • There is a variety of ways of meeting the proximity challenge • Branches and vans need catchments of 50 – 100.000 people depending on the level of competition • Single teller kiosks work in smaller towns with populations of about 10.000 • Agent models work in rural centres with populations of as little as 5.000  But how many locations are there with this sort of population within a 2km walking distance?

  15. KEY FINDING No3 Getting a real ruralreachmaybebeyondus in Africa/Asia without a mobile money tie-up East Africa High level mapping of cities/towns/ larger clusters GIS analysis allowsustosee ‘people clusters’ andhowmanylocationsthere are at scale. It is surprisinghowquicklysettlementdensityfalls below the level neededto have 5000 people living within 2km of a possible agent location.

  16. KEY FINDING No3 Getting a real ruralreachmaybebeyondus in Africa/Asia without a mobile money tie-up East Africa High level mapping of cities/towns/ larger clusters GIS analysis allowsustosee ‘people clusters’ andhowmanylocationsthere are at scale. We think mobile money reaches further out as people will easily walk 5km to pick-up/send a transfer that typically equals a week’s living.

  17. KEY FINDING No3 Getting a real ruralreachmaybebeyondus in Africa/Asia without a mobile money tie-up Kenya 41 mnspop’n mid-2010 GIS analysis allowsustosee ‘people clusters’ andhowmanylocationsthere are at scale. In Kenya the cut-off where clusters stop having the scale to take a bank agency comes after +/-1000 locations containing about half the total population.

  18. KEY FINDING No3 Getting a real ruralreachmaybebeyondus in Africa/Asia without a mobile money tie-up Tanzania 45 mnspop’n 2010 GIS analysis allowsustosee ‘people clusters’ andhowmanylocationsthere are at scale. In Tanzania the cut-off comes after only a 200~300 locations that capture only a quarter of the whole population  parts of rural Vietnam look very similar.

  19. KEY FINDING No3 Getting a real ruralreachmaybebeyondus in Africa/Asia without a mobile money tie-up Vietnam 87 mnspop’n mid-2010 GIS analysis allowsustosee ‘people clusters’ andhowmanylocationsthere are at scale. In Tanzania the cut-off comes after only a 200~300 locations that capture only a quarter of the whole population  parts of rural Vietnam look very similar.

  20. KEY FINDING No3 What does allthismean? • In poorercountries: • In countrieswithdispersedruralpopulationsthere is no sustainable ‘own-agent’ solution toreaching the ruralpoor • Paying mobile money operators to collect ruraldepositsandnotcharging the customer forthis is the next step • In veryruralcountriesthis is probably the only way toreach more than a quarter of the unbankedpopulation • In better off countries: • 60 cents a month in poorercountriespaysfor IT and five minutes of teller time – justenoughfor 2-3 counter op’s • But thisonlyworksforbankswithactive customer bases of a million-plus, eachtransacting 2-3 times a month • Alsojustenoughfor 2-3 agent/m-money op’s

  21. What do these threekeyfindingsmeanfor the Marrakechdeclaration … most adults without an account in most countries will generally be poor/near-poor, most will be rural and many of them will be young adults (15~24) in the parental home … … what this market can afford is very tight compared to historic tariffs but affordable pricing can be sustainable provided staff/ systems productivity is forced up … … the relatively urbanised poor can be reached affordably, just, with our own network solutions but we will only ever reach the unbanked rural poor as well as mobile money does by partnering with mobile operators

  22. WSBI General Assembly Berlin, 13 June 2013 Ian Radcliffe (Programme Director)

More Related