Blog

Driving Viability for Banks and BCs

Posted on by MSC

“Business Correspondent (BC) model is quite often considered onerous by banks and is taken as a burden thrust on them by the regulator and policy makers. Low-income consumer segments, BCs as service providers, No Frills Accounts (NFAs) and bank’s portfolio of products are viewed in isolation of one-another and not as pieces of the same puzzle that, if put-together appropriately, can address the wide ranging financial needs of the low-income unbanked or under-banked.

This Note examines various enabling factors that can accelerate profitability for the banks and viability and sustainability for the BCs.”

Pricing for E/M-Banking

Posted on by Parul Tandon

This Note discusses customer perceptions around some of the key pricing issues for banks while implementing agent-based banking:
– Pricing across different channels: how to price new channel relative to existing channels at par, or lower or at a premium?
– Flat or percentage based pricing: Percentage based pricing works out to be cheaper for small transactions, but do the customers choose on that basis?
Pricing is one the most important aspects for the success of a mobile banking initiative. In the mobile banking landscape there is no one successful pricing scheme. From discounted/free m-banking services to charging customers differently in different channels, pricing schemes can be very different.

Pricing Mobile Banking Services

Posted on by Parul Tandon

This Note examines perceptions of transaction v. ledger fees and poor people’s willingness to pay for agent-based financial services delivered in their villages. It identifies a wide range of barriers for low income people to transact in traditional bank branches and provides evidence that they are indeed willing to pay reasonable fees for convenient service. Poor people recognise the benefits of agent-based banking but have concerns about agent-based systems that will also negatively affect willingness to pay. To cover the cost of paying agents, banks will either have to charge for deposits, or look to make money on other services delivered through their agents, including from remittances and payments selling insurance, and interest earned on loans. Pricing remains a challenge – but there are many opportunities!

Graduating SBI Tatkal Customers

Posted on by MSC

Eko’s Tatkal remittance product was introduced at a time when Business Correspondent Network Managers (BCNMs) were struggling to gain visibility and trust among their target segments, as the No Frills Account (NFA) product alone was not sufficient to meet customers’ expressed needs. This is evident from the widespread inactivity/dormancy experienced for NFA accounts. Tatkal has given BCNMs an opportunity to gain visibility and improve the business case through increased volumes.

This Note discusses when and why customers may be ready to try new services beyond the entry Tatkal product and how BCNMs could leverage the increased footfall at their agents’ outlets due to Tatkal by cross-selling other financial products, to graduate customers to use a wider range of m-money services.

Potential for Leasing Products: Asset Financing for Micro – & Small Businesses in Tanzania and Uganda

Posted on by MSC

This study explores the potential for the development of products specifically targeted towards asset finance in the micro and small enterprise (MSE) sector in East Africa. It also assesses the demand for and supply of leasing services in East Africa.

What are clients doing post the Andhra Pradesh MFI crisis?

Posted on by MSC

MicroSave conducted this study to examine the impact of the Andhra Pradesh crisis on borrowers, by collating client experiences, opinions and needs so as to help policy makers and key actors to devise solutions suited to client requirements.