Deriv’s Missed Opportunity: Untapped Potential in Africa's Female Early Adopters

Summary

This article explores Deriv ’s success in Botswana and broader African markets, noting its dominance with an estimated 40% market share. However, it critiques the platform’s missed opportunity in targeting female early adopters, who are crucial financial decision-makers, particularly in Botswana's motshelo savings groups.

By shifting focus to this demographic and promoting trading clubs, Deriv could significantly enhance its market penetration and drive further growth. Recommendations include targeting female affiliates, promoting financial literacy, and leveraging existing informal savings structures to capitalize on untapped potential.

An Interesting Observation

Deriv , one of the world’s leading online brokerages, has achieved significant traction in Africa through its affiliate model, and is now the leading online brokerage platform in Botswana with an estimated 40% market share.? However, Deriv and other platforms in the online retail trading space, have yet to capitalize on a crucial demographic: female early adopters. These women, who are the primary custodians of household savings across Africa, represent a substantial untapped market.

A typical female early adopter in Botswana and other African markets is a young professional aged between 25 and 40. She is well-educated, tech-savvy, and typically employed in urban areas. These women are open-minded, innovative, and are keen on exploring new opportunities for financial growth. They are often the financial planners of their households, making decisions not only for personal savings but also for family investments.

In Botswana, many of these women are involved in motshelo groups—informal savings clubs where they pool funds to achieve financial goals. Their participation in these groups reflects a strong community-oriented mindset, with a focus on collective growth and security. This demographic values progress, financial independence, and the ability to manage and grow their wealth through modern financial tools and platforms. Despite their potential, they are often overlooked in marketing strategies that tend to focus on younger, male audiences.

Deriv’s operations span across Africa, with significant footprints in countries like Nigeria, South Africa, Kenya, Rwanda, Tanzania, Namibia, Botswana, and Angola. In these markets, retail trading interest has surged, particularly as more individuals seek financial independence through trading platforms. Deriv’s strategy has been largely successful, focusing on young, male affiliates aged 18-25. However, this focus has left a significant gap: the lack of engagement with young professional women, who are crucial players in the financial landscape.

In Botswana, for instance, the prevalence of motshelo presents a golden opportunity that Deriv and similar platforms have yet to fully exploit. These savings pools represent a $100 million industry and are a perfect match for Deriv’s trading platform. Women who manage motshelo funds would be highly receptive to opportunities for investment and financial growth through informal trading clubs or other collective trading opportunities promvided by online platforms.

Despite its success in the country, Deriv’s affiliate program remains heavily skewed towards young men with some college education who are largely unemployed. This group, while valuable, does not represent the full spectrum of potential users in these markets. For example, in Kenya and Nigeria, as well as Botswana, women are often the key financial decision-makers within households and communities, yet they are underrepresented in Deriv’s user base. Engaging this demographic could significantly boost the platform’s growth and deepen its market penetration.

Conclusion

Deriv’s current position as the leading online brokerage in Botswana is commendable, but its reliance on a narrow demographic has limited its potential. The company’s lack of focus on women, particularly those involved in informal savings mechanisms, is a missed opportunity. This is a market not only with substantial financial resources but also with the communal structure to adopt trading platforms en-masse if approached with the right strategy.

Moreover, Deriv’s experience in Botswana reflects a broader trend across African markets. Women, who often control household savings and play a pivotal role in financial decisions, are frequently overlooked by fintech companies. Given the surge in retail trading interest across Africa, engaging this demographic could be key to unlocking further growth and ensuring long-term sustainability.

Recommendations

1. Target Female Early Adopters: Deriv should seriously consider a shift in its focus to young, professional women, particularly those involved in informal savings groups such as motshelo in Botswana. Marketing campaigns highlighting how Deriv can help grow and diversify their savings would resonate strongly with this audience.
2. Promote Trading Clubs: Leveraging the motshelo model by promoting group trading clubs within these savings pools would open up new avenues for deposits and trading activity. Educational resources tailored specifically to women’s savings groups would foster trust and engagement.
3. Affiliates for Women: Revamping the affiliate program to include women-centric promotions and partnerships would diversify the affiliate pool and attract higher-value clients. Collaborations with women-led organizations and financial influencers would be a strategic move.
4. Financial Literacy Initiatives: Developing workshops and content aimed specifically at educating women on trading and financial growth, using Deriv’s platform, could enhance brand trust and loyalty. Partnerships with women’s organizations, local NGOs, and community groups would amplify these efforts.