Making Cents 2012 Global Youth Economic Opportunities ConferenceSeptember 2012
SBI is dedicated to expanding access to capital, information and services forsmall & growing businesses, entrepreneurs and households,
to catalyze sustainable development and build an inclusive global financial system
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Clients are increasingly seeing ADC solutions not as a new business but as critical addition to their existing business
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The market is moving beyond the example of mPesa Getting the model right builds a stronger foundation for success rather than being the “first
mover” Agents remain a significant cost center for all agent based models Product development is critical However, many solutions under development today don’t seek to revolutionize access to
finance, a la m-Pesa, in as much as use the innovations to develop new products and services.
Name Country Model How does it make money?
M-PESA Kenya MNO-led e-money issuer 1) Additional revenue per user2) Reduced ‘churn’3) Transactions
UBL Omni Pakistan Business line of a commercial bank with the potential to spin-off its transactional platform
1) Transactions2) Low cost deposits3) Reduced branch crowding
bKash Bangladesh Third-party agent aggregator linking to banks and telcos and offering e-money
1) Transactions2) Float
Private client
Mexico Non-Bank financial institutions offering mobile solutions to address competitive challenges
1) Existing products2) Transactions
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150 millionPopulation
112 out of 135Human Poverty Index
0-14 years: 34.6%, 15-64 years: 61.4%, 65+: 4%Age Breakdown
65%% Population under 30
males 53.9%, females 43.1%Literacy rate (age 15+)
5.6 millionPopulation living abroad
Across SBI’s projects, the youth market IS the market in many of our geographies
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In Romania, SBI’s clients are looking to mobile as a way to reach rural customers while serving an increasingly young and urban population
In Egypt, formal financial sector penetration is less than 10% but mobile penetration is close to 90%. Innovative agent-based solutions are being developed to provide this market with financial services
The example of Bangladesh is indicative of the importance of reaching young consumers:
Bangladesh Key Statistics
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bKash has been successful because its products appeal to an increasingly young and technologically savvy population
o A 2009 survey of 10,000+ families of migrant workers showed that: 82% spent their remittance on books and other
learning materials 66% spent it on tuition for their children
o The “youth bulge” presents serious political, social and economic pressures, placing a significant burden on employment opportunities for the young and under-educated
o Education is a top priority for those who can afford it
o One of bKash’s target markets is students who live away from home
o Youth-oriented products must target both the youth themselves and older generations
o Focused marketing and well designed products are critical
First year results• Nearly 500,000
active users• Network of 10,000
agents
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