Challenges
Throughout the research collaboration, we focus on dealing with some of the most pressing challenges that are present across the continent. These include:
Lack of partnerships
Across the continent, FSPs often operate in silos. This results in more expensive and limited services than clients may need and want
Insufficient client centricity
The emphasis is often on designing financial products from within the organisations and getting these sold – rather than focusing on the need of the client as a point of departure
Regulatory barriers to inclusion
Financial services must be regulated – consumers have a lot to lose when things go wrong. The flip side to regulation however is that it may sometimes stifle innovation, and increase the cost of effective delivery of financial services.
Case studies
The research found that banks view the mass market as profitable and important. The desire to act is there but the key challenge is finding a way to participate in a cost-effective, sustainable manner in a rapidly changing environment. To shed light on how to move forward, WSBI and FinMark Trust have created five short case studies. These are part of WSBI State of the Savings and Retail Banking Sector in Africa research series.
A case study on Covid-19
From a customer, retail banking and regulatory perspective
- Changes in the financial behaviour of customers
- The impact on financial service providers in Africa
- Regulatory responses to Covid-19
A case study on mobile financial services
Unlocking the potential of mobile for low-value account holders
- What drives the adoption of mobile money?
- Mobile financial services in Africa
- Can mobile money operators be too successful?
- Mobile money operators can go where banks do not
- Banks can go mobile despite opposition
- You don’t have to be big to succeed
- Mobile financial services: guidelines for banks and MFIs
A case study on innovative business models
Partnerships as a key to unlocking the mass market
- Why change is required
- Cooperation FSP with other FSPs
- The use of FinTech
- Working with non-financial service providers
- Key issues when developing strategies for building partnerships
- Unlocking routes to market
A case study on connecting with low-income through digitalisation
Digitalisation is revolutionizing the way industries conduct their business
- Digitalisation in African banking
- The Eight Components of Digital Transformation Success
- Issues to consider when creating digitalisation strategies for an FSP
A case study on digital platforms serving the agricultural sector
Banking everywhere is becoming highly digitalized, especially since the COVID-19 pandemic
- Digital Platforms in Africa
- DigiFarm in Kenya – Partnering to enhance a value proposition
- EcoFarmer in Zimbabwe – Leveraging existing customers and building volume
- FCMB in Nigeria – A vision of retail banking for the entire value chain
- Lessons for FSPs keen to develop via agricultural platforms
A case study on unpacking the customer through demand side data
This case study is designed to highlight African banking examples where data has been used successfully to make inroads into the low-income market.
- An overview of data use within FSPs
- Using public demand-side data to design products – Zanaco National Commercial Bank, Zambia
- Leveraging demand side data to build localized distribution strategies – BRAC Uganda
- Leveraging a patchwork for information to drive client centricity – Awash Ethiopia
- A short how-to guide for FSPs that wish to leverage market research data
- Conclusion – Deciphering the customer need not be expensive or complicated
The way forward
The WSBI and FinMark Trust will continue to work together over the coming year to articulate a roadmap on what can be done by different stakeholders to support financial inclusion in Africa. The focus will be tangible, looking at empowering women and youth as two key groups that are underserved, but critical to the future economic development and wellbeing of the continent.
WSBI’s Scale2Save programme is a 6-year partnership with the Mastercard Foundation . To learn more about the programme visit this website or contact us by e-mail at scale2save@wsbi-esbg.org