Banking and postal Services Innovation, misconceptions on market size & purchase power in Africa and strategic solutions for agent economic viability

Digestible bites of knowledge from this week [February 17th]

1. ?? Banking & Postal Services in Nigeria and examples from China
2. ?? Market Size & Consumer Purchasing Power Misconceptions in Africa
3. ?? Strategic Solutions to overcome the viability of agent economics

?? Before you start ??

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1. ?? ?? Banking and Postal Services in Nigeria: New Partnership from NIPOST

TAJBank Ltd. plans to expand its services to Nigerian Postal Service , focusing on rent, refurbishment, and rebranding.

The collaboration aims to provide cost-efficient and interest-free banking services, focusing on customer satisfaction and national economic growth. Both parties are optimistic about the mutually beneficial partnership and its potential to contribute to the #nigerian economy.

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• TAJBank and NIPOST have formed a public-private partnership to enhance financial inclusion and expand postal services in Nigeria.
• TAJBank aims to collaborate with NIPOST for branch expansion, offering cost-free, real-time services, and an innovative user experience.
• The partnership between TAJBank and NIPOST reflects a commitment to redefine non-interest banking and contribute to Nigeria's economy.

?? If you liked this story check out the latest resource added to our Blueprint Business Model Innovation!        

ULE, a Chinese e-commerce platform that is a joint venture of TOM Group and China Post , focuses on online-to-offline shopping in rural areas of China.

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2. ?? ?? Revisiting the Misconceptions About Market Size and Consumer Purchasing Power in Africa

"Frontier Blindspot," a set of biases that can affect understanding of tech markets in frontier economies. The potential for B2B business models and the significance of focusing on primary necessities make it key to network with the B2C market. Revealing Misconceptions About Market Size and Consumer Purchasing Power in Africa

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• Most people in Sub-Saharan Africa live on relatively low incomes, with the bulk of economic power concentrated among the top 10%, who consume $5 per day or more.
• There is a significant market opportunity among consumers with incomes between $4-$8/day, as they have the largest density of discretionary income and larger population numbers.
• Lowering the cost of acquisition and distribution is crucial for startups targeting lower-income populations, and innovative, low-cost ways to serve these consumers can create massive value.

That said, costs to acquire and serve these larger numbers of customers will be prohibitive to most and will be the critical factor in success. Conversely, those who can create innovative, low-cost ways to acquire and serve users in the $4-$8/day category (e.g. partnering with community groups, government, USSD interfaces, viral peer marketing, etc) have the potential to create massive amounts of value by opening these consumers to new markets. DFS Lab

?? How agent networks leverage service aggregation to reduce total customer acquisition cost for e-commerce and other VAS to improve revenue resilience        

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3. ?? ??Understanding agent network Economics and using Strategic Solutions to overcome viability challenges

The concept of agent network optimisation focuses on improving the efficiency and profitability of digital financial service networks in rural areas.

Diversifying digital financial service offerings, leveraging technological advancements, and forming strategic partnerships to create sustainable and profitable networks in rural areas are the topics of my new post. The article emphasises the need to diversify services, innovate technologically, and form strategic partnerships to create sustainable and profitable networks in rural communities. It also introduces the Barefoot Economist, which helps financial providers reach last-mile customers.

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• E-money agent networks have lower barriers to scale and reach compared to traditional agency banking models, with strategic and economic benefits for service providers.
• The expansion of digital financial service (DFS) offerings in rural areas is essential for the viability and profitability of agent networks, requiring service diversification, technological innovation, and strategic partnerships.
• Agent network optimisation involves a delicate balance between efficiency and cost-effectiveness, requiring a multi-faceted approach to create sustainable, inclusive, and profitable networks in rural communities.

Read the full article here ??

THE BAREFOOT ECONOMIST

???? My name is Hugo Pacheco ; drop a comment and let's chat!

?? I help financial providers reach last-mile customers with alternative channels

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