This Note assesses if there is an adequate business case for micropensions in India. It also identifies the uniqueness in the existing micropension models in India. Delivering a long term savings instrument like pensions to the low income segment is a huge distributional as well as behavioural challenge. The success of any micropension scheme will ultimately depend upon: 1) The level of trust a distributor enjoys from its clients, which is essential for a long term association; 2) The outreach of the distributor, to bring scale; 3) Efficiency, to handle operations in a timely manner, and 4)The revenue model of the scheme, which will decide whether the commission is sufficient to motivate the distributor to mobilise resources.
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Health Emergencies: How Do The Poor Pay?
This Note details the ways low income families in India deal with their medical exigencies in the absence of quality public heath care facilities – through a variety of savings, loans and distress sales. Thus medical emergencies create very difficult situations for the poor, depleting their resources – financial, social and physical. Health insurance programmes may provide an opportunity to help the poor manage health risks. However, the idea of health insurance is new to the low income population. Reasons like inappropriate products, lack of insurance awareness, limited trust in the insurance agents, previous experiences of fraud, or lack of trust in insurance companies add to the poor penetration of such schemes.
Understanding Demand for Financial Products among the Youth of Central Java
In Indonesia, over 20% of youth are neither in school nor employed, and over 50% of youth in the labour market are unemployed or underemployed. MicroSave conducted market research to understand the needs for financial products and perceptions of existing financial products amongst the youth of central Java. MicroSave’s Product Development Framework was used to design a suite of client responsive products. Major financial stress points and aspirations of the youth were assessed. The team further segmented the market based on age and marital status. The preference of the segments were analysed using a segment preference matrix. Finally the team suggested a mix of products to be piloted for the youth.
Understanding Demand for Financial Products among the Youth of Central Java
In Indonesia, over 20% of youth are neither in school nor employed, and over 50% of youth in the labour market are unemployed or underemployed. MicroSave conducted market research to understand the needs for financial products and perceptions of existing financial products amongst the youth of central Java. MicroSave’s Product Development Framework was used to design a suite of client responsive products. Major financial stress points and aspirations of the youth were assessed. The team further segmented the market based on age and marital status. The preference of the segments were analysed using a segment preference matrix. Finally the team suggested a mix of products to be piloted for the youth.
Youth-Inclusive Financial Services (YIFS): Lesson & Key Considerations (Part II)
Youth between 10 – 24 years of age constitute 1.77 billion (27% of the total global population). This constitutes a huge potential market for FIs seeking to extend financial services to the youth. MicroSave together with the Population Council have been managing – The Safe and Smart Savings Products for Vulnerable Adolescent Girls (SSSVAGs) project – implemented in Kenya and Uganda. The project, among other objectives, seeks to extend financial services and build financial capability amongst young girls 10 – 19 years of age. Under this project, savings products were designed specifically for the adolescent girls using MicroSave’s systematic product development approach which begins with market research to understand the target clients’ current financial behaviour, needs, coping mechanisms, gaps and preferences. This Note presents key lessons learned from this project, on youth-inclusive financial services using the “8Ps of marketing” as a framework. The lessons, derived from the success and challenges experienced, offer an opportunity to inform future YIFS programmes.
Banks: The Preferred Remittance Services
This Note discusses the features of two agent-based remittance models introduced by banks: 1. Direct remote deposit into a bank account from business correspondent agent (BC agent) location (referred as direct deposit); and 2. Money transfer between two no-frills savings accounts (NFA). It concludes that with a well explored and researched strategy focussing on customer service and agent satisfaction, banks can service significantly higher number of remitters and receivers with a safe, fast and trusted remittance product/channel.