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E/M-Banking Booklet: Volume IV

Posted on by Parul Tandon

The E/M-Banking Booklet – Volume IV is the eighth publication under the Optimising Performance and Efficiency (OPE) Series. The OPE Series brings together key insights and ideas on specific topics, with clear objective of providing microfinance practitioners with practical and actionable advice.

In response to repeated demands from practitioners, MicroSave has developed this fourth compendium of brief publications on e/m-banking. This compendium examines various aspects of costing and pricing of financial services from the perspective of users, intermediaries and banks. There has to be a fine balance to ensure that the user feels he is getting value for money using the service; agents and network managers are sufficiently remunerated for the work they do (and the capital they have to invest); and the banks find the proposition sustainable. The compendium also includes insights gained from customer and channel satisfaction surveys conducted over a long period using MicroSave’s Customer and Channel Satisfaction Measurement and Management (CSM) tool. ANMs have used the CSM results to improve their systems and services and thus significantly improved customer and agent satisfaction.

Product Marketing Strategies for E/M-Banking (4/5)

Posted on by Parul Tandon

This Note focuses on explaining the importance of product marketing strategy for e/m-banking service providers. It briefly introduces the reader to the key elements of the product marketing strategy and attempts to explicate each of these components by providing examples of current practices adopted by e/m-banking service providers across the globe.

The Note exhibits the example of e/m- banking service providers from the countries like Kenya, Tanzania, South Africa, Pakistan and India, which are the leaders in mobile banking services. It concludes by imparting important lessons to be followed by e/m-banking service providers for designing marketing strategy.

Role of Branding to Promote E/M-Banking Products & Services (3/5)

Posted on by Parul Tandon

This Note discusses the first element of MicroSave’s Strategic Marketing Framework, i.e., “Corporate Brand Strategy” as applied to e/m-banking context. This Note examines the role that branding can play in promoting e/m-banking products and services to the un-banked and under-banked. It discusses how e/m-banking providers create a brand (in most cases leverage an established brand such as that of an MNO or bank) and corporate identity, and then communicate it internally as well as externally through marketing/promotions and public relations.

Top Marketing Challenges for E/M-Banking (2/5)

Posted on by Parul Tandon

Marketing cannot only be seen as an expense to avoid or incur as little as possible. Through marketing, customers are told about a service and how it addresses their need and gives them a reason to use the service. In case of e/m-banking, while there has been significant investment in marketing and promotions, not many providers (except for a few) have achieved significant scale in customer adoption.

This Note attempts to summarise the key challenges that the e/m-banking service providers face while promoting their services and also covers potential, actionable steps that could address the challenges.

Individual or Institutional BCs: The Banker’s Perspective

Posted on by MSC

This Note provides perspective on how individual and institutional BCs are perceived by banks. The Note examines how banks might choose between the two approaches, by using the decision parameters such as:

(a) Customer Acquisition and Outreach,
(b) Customer Relationship and Retention,
(c) Control: Monitoring and Support, and,
(d) Resources.

It serves as a starting point for discussion and decision-making for banks interested in entering the BC business, and for BCNMs interested in partnering with them.

Individual or Institutional BCs: The Client’s Perspective

Posted on by MSC

This Note is the first of a two-part series, which provides some perspective on how individual business correspondents (BCs) and institutional BCs are perceived by clients and banks.

This Note approaches the question from the client’s perspective. It concludes that institutional BCs have the advantage of delivering better on most of the key parameters: trust and customer relationship; quality of service delivery; consumer protection and cash availability, primarily because the BCNMs are dedicated to, and focused on, the success of the overall system. In the case of individual BCs, clients may find that the local bank branch does not have the motivation or the resources to provide dedicated teams to provide superior service. This is especially true in India where the banks prefer to outsource their priority sector/financial inclusion activities (for both credit and savings).