cases for financial inclusion developing credible business · pension, rsa, ira, 401(k) etc. begin...
TRANSCRIPT
Workshop delivered by Salami Abolore | Founder @ Riby 21 - Nov - 2018
Developing Credible Business Cases for Financial Inclusion
An EFInA workshop to Promote Adoption & Uptake of FinTech Services by the Low Income Population
Save | Borrow | Invest
About RibyAt a Glance
Business Model(How We Make
Money!)
62.5mAdult Nigerians are Unbanked (33m are
Banked)Including
12mAdult Nigerians that Save with Informal Savings Collectors
400mAfricans are Unbanked
And
2BnAdults Worldwide are Unbanked or
Underbanked
So, many of the world’s underbanked created their own Cooperative Banks, Credit Unions or Informal Savings,
Loans & Trade Groups especially in Africa, India & many Global
Underserved & Minority Communities
Africa in focus:● Nigeria (Active in All
States)● South Africa (Oct
2018)● Botswana (Q1 2019)● Ghana (Q2 2019)
Save ~ Borrow ~ Invest ~ Together
Nigeria Africa & Global The Opportunity
The Riby Digital Banking Platform for CooperativesTo run the groups, Riby created our proprietary Banking System for Cooperatives, Savings / Trade Groups & their members around the world to digitise their current group banking system.
In partnership with Global Banks, Payment & Card Processing Companies, the Riby Banking Platform helps Micro/Small Businesses and Middle-Income Salary Earners within their cooperative groups to create and manage bank or mobile money accounts that enables them to:
Save Consistently
Borrow Easily
Invest Together
Member & Bank Account Management
Funds Transfer, Digital Banking, USSD, Cards
Approvals, Document & Record Management
Savings, Loans, Grants, Investment
Audit, Compliance & Regulatory Controls
KYC Verification & Credit Scoring.
Launched in May 2016 | Passed $1m in Capital & Revenue in our Business | 1.4m Users Registered | $50m in 300k Loans Recorded | 20+ Partners Secured for our Africa Operation
1SubscriptionFee per User
Customization(Partner) Charges
TransactionFees (%)
2 3
Global Expansion● India, Asia & Europe● South & North
AmericaCustomer Growth● Reach 20m users by
2025
Current Operations &
Global Growth Projections
Our Solution - Web & Card
The Riby Digital Banking Platform for Cooperatives
Our Solution - Mobile
Key Challenges & Lessons in 2 Years
1
2
Product - Market FitWe struggled with fine-tuning our Product & Getting to the Core of the Problem / Solution
Timing, Team & FundingOur entry was rough... We couldn’t start with a solid team & securing funding was tough
3 Fancy Tech is not ImportantThe customer (especially non-tech savvy / low income) do not care about how fancy our tech is, just need a good / working solution.
4 Focus on Customers NeedThe Tech should simply deliver the Financial Product without glitches & must be easy to access. Constant contact with customer is needed.
FOUNDER / CEO @ RIBY
Abolore SalamiMy core experience is in Business Development, Products & Enterprise Sales. I have worked in Payment, Power IoT Tech, Media & Film, Management Consulting & Financial Services.
Before Riby, I was Vice President at PowerTech - Venture Garden Group where I managed accounts like Eko Electric (Disco), Lagos State Electricity Board (LSEB) and the PowerCollect Platform for the Market Operator at the Transmission Company of Nigeria.
I have a BSc & a MBA in Finance. I am married to Olaedo & blessed with Jadesola & Kamsi.
Let’s Get Started with Topic Breakdown
1 How to Develop Credible Business Cases
2 For FinancialInclusion
3 Promoting the Adoption of FinTech (Financial Technology) Services
4 By Low IncomePopulation
1. What is a ‘Credible’?
To be Credible means:
● Believable, Convincing
● That something will happen
● Delivered as Promised
● Be Successful in its Intent & Promise
2. What are the elements of a Business Case for ‘Low Income’ Segment?
● Low per user Income (ARPU - Average Revenue
per User)
● Lean Operations and Super Cost Efficient
● Must have Volume and Speed to make up for
low ARPU
3. What is Financial Inclusion?Salami’s Definition:Having a path to a Lifetime of Liveable Income &
Financial Base from Youth till Old Age.
I also termed this ‘Resource Inclusion’.
EFInA’s Definition:The provision of broad range of Financial Products
that are Relevant, Appropriate & Affordable for
the entire Adult Population, including the
Low-Income Segment.
3b. Financial Products“These are Instruments that help you Save, Borrow,
Invest, Get Insurance & Get a Mortgage.” - Economy Watch & Wikipedia
Issued by:
01 | Banks & Financial Institutions
02 | Credit Unions, Savings Groups and Cooperatives
03 | Insurance Providers
04 | Investment Funds & Stock Brokerages
05 | Credit Card Agencies & Consumer-Finance Companies
Source: www.economywatch.com/investment/financial-products.html & https://en.wikipedia.org/wiki/Financial_services
₦
06 | Government Sponsored Entities
3c. Types of Financial Products - Broad Range
Simple Products:
Savings | Loans | Shares | Bonds | Treasury Bills | Options | Mutual Funds | Certificate of Deposit | Annuities | Payment
Complex Products:
CDS (Credit Default Swaps) | CDO (Collateralized Debt Obligations)...
Remember our Goal… Financial Products that are:Credible | Relevant | Appropriate | Affordable
1 Credible:- Delivers as Promised- Trusted over time
2 Affordable:- Low Cost- Simple & Effective
3 Appropriate & Relevant- Consumer focused- Based on Core Needs- Easy to Access
4 So: What are the Needs of majority of Nigerians?
Create Income Source / Livelihood, Rent a House, Get Health Care & Education, Get Married, Secure a Loan for
his/her Small Business, Electric for the House
Savings, Safe / Risk-free Investments, Insurance, Pension, RSA, IRA, 401(k) etc.
Begin to desire & Create Riches, Support Family Members & Friends, Help the needy
Risky Investments, Luxury Goods, Luxury Home Financing etc.
Food, Water, Rest, Warmth.
Security & Safety
Belonging, Love, Intimacy, Relationships, Friendship
Self-Esteem, Prestige & Accomplishment
Achieve Dreams
Self-Fulfilment (Dream) Needs
Psychological (Aspiration) Needs
Physiological (Basic) Needs
Financial Products Needs of the Low Income Earner
Achieve Dreams like Philanthropy,
Startup Investment etc.
1 2 3
01 - Your Business Case Must Address the Basic Needs FirstYour Financial Product Offerings should be:
- Affordable: Low cost and with as little
charges as possible & Easy to Access / Use
- Credible: Deliver as promised
- Appropriate & Relevant: Address the most
basic needs first.
- Aspirational: This is where Maslow’s hierarchy of needs kicks into higher levels.
02 to 04: The Growth Engine
02
TEAM● Clear Vision
● Dedicated Team & In-house Tech
● Quick Innovation
03
DISTRIBUTION
04
SCALE
● Offline & Boots on the Ground
● Secure Distribution Partners
● No Distribution, No Impact.
● Go Big, Go Niche or Go Home
● Secure backers (if you can)
● Ensure Regulatory Compliance
Channels… In my view for Low-Income Users
USSD
60%Most Low Income Users are
getting used to USSD as their preferred Channel for services
from bill payment to loans.
AGENT
30%Banking & Financial Services through Agents will only get
bigger with the new Payment Service Bank licenses.
MOBILE / WEB
10%Mobile-first is an ideology for Middle Income users. Web is
still relevant but less valuable in this age.
Start Simple: Avoid too wide a Problem Class
05
- Competition: Don’t Worry so much about this
- Collaboration: Very Important
06
- Risk Management is not optional
- Don’t put yourself in a ‘fix’ you can’t get away from
07
- Prevent Fraud and Loss of Value at all cost.
- Trust built can easily be lost
08
- Listen and learn, especially from your Customers
- Consult widely, Research Deeply, Learn & Iterate
09
DON’T STOPDON’T QUITGIVE IT YOUR ALLIT’S EASILY A JOURNEY OF
10YEARS
