Segmentation studies of customers and enterprises for financial services

MSC’s multi-country expertise of working with low-income people for more than two decades helps us conduct a range of customer segmentation and market-sizing projects. We design and implement rigorous research studies to provide comprehensive end-to-end consumer insights for faster, smarter, and better decisions. We have studied the women mobile financial services (MFS) customers in Bangladesh and segmented them into seven customer segments based on two key parameters—location and age group. Our work highlighted a market of 12.5 million additional users by 2020.

Our research on low and middle-income (LMI) customers in India segmented LMI into three categories based on their savings behavior–diligent savers, ambitious savers, and cautious savers. The research highlighted an annual deposit potential of USD 155 billion among 600 million people from the LMI segment.

MSC’s customer segmentation research has been a part of developing the national financial inclusion and financial literacy strategy for the Government of Qatar. The research segmented 2.69 million people in Qatar into distinct categories and helped MSC develop a suitable financial inclusion strategy.

MSC conducted a market segmentation research in Cambodia to understand and assess the financial behavior of various market segments and measure the demand for innovative financial products in the Cambodian marketplace. Our study helped our client to improve its product offering for close to 700,000 clients.

Insights on the performance of financial inclusion and government-to-people programs in India

MSC has conducted research to gain insights into the implementation and impact of government-to-people (G2P) programs in South Asia. With lessons from these countries, we have worked closely with governments in other developing countries, such as Indonesia, Nigeria, Tanzania, and Bangladesh. Our research work in this area has primarily included program assessments, program monitoring, and district readiness assessments for G2P.

MSC’s research designs cover all aspects of G2P, starting with the theory of change and results framework, to a special focus on key areas as identified by the governments. Our focus areas include:

  • Identification of problems with cash withdrawals;
  • Benchmarking indicators of success;
  • Gender-responsive program design assessment;
  • Customer grievance resolution;
  • Examination of risks and mitigation measures.

MSC supported the Government of India to explore pathways to better nutritional outcomes through the National Food Security Act. We have quantitatively assessed the nutritional food basket of households under NFSA, analyzed gaps in the nutritional requirements of food scarce households, and developed recommendations to achieve nutritional goals at the household-level.

Documents: Bhamashah report, PMJDY round 3, DBT -F public reports.
Also check for a couple BN, which are not listed by GSI team.

Research on financial behavior of people across Asia and Africa

One of MSC’s key areas of focus and expertise is in the financial behavior of low-income people. We study the financial behavior of people in multiple countries and contexts. Notable among them is the work that revolutionized Equity Bank’s product suite, and the MetaMon Research undertaken in India and Bangladesh.

The MetaMon research identified and developed suitable metaphors to explain the money management practices of the low-income market segment, which in turn informed CGAP’s work on client-centricity. As part of the research, MSC captured the keywords and imagery that people use while thinking about financial services. We used human-centric design, participatory “life game” and customer journey approaches to map the interactions of poor clients with financial services, their financial decision-making, and money management practices.

The design firm IDEO.org collaborated with MSC to use our expertise in human-centric research, country context, and behavioral design. The engagement helped IDEO understand the current savings behavior of the poor in India and their user experiences of available payments banks and mobile money services. The research led to the development of eight design principles for financial institutions for designing inclusive digital savings products. The output of the report can be accessed here. (ADD LINK)

At the time of writing, MSC was working on behavior-centric research in Senegal to understand the pathways to adoption, usage, and impact of digital financial services (DFS) among different segments, especially the low-income, rural, and female segments. The study will understand the impact of DFS usage on financial security and well-being in an emerging DFS market in West Africa.

MSME behavior research in various countries

MSC conducts research on behavior, financing, and assesses development needs for micro, small, and medium enterprises (MSMEs). We evaluate programs that aim to promote the MSME sector through landscaping studies and quantitative and qualitative methods based on market sizing and segmentation. Highlights of MSC’s quantitative research with MSMEs include robust study design, appropriate sampling methodology, scrupulous data collection methods, and cutting-edge analytical techniques to generate insights.

MSC conducted a comprehensive  study on MSE owners and key stakeholders in Bangladesh as part of a project for Nathan Associates London Ltd. The study sought insights on the use of mobile financial services (MFS) by MSMEs in the country. Through the study, MSC addressed key challenges and identified opportunities to meet the needs of MSEs while accessing finance from MFS providers in Bangladesh.

MSC’s key work in the MSME research space has been with Michel and Susan Dell Foundation (MSDF). We produced market insights on credit behavior and preferences for urban MSMEs. The mixed-method research generated insights that contributed to the design of financial products.

MSC conducted research studies to assess the state of finance for MSMEs in various African countries including Malawi, Uganda, and Rwanda. The research centered on evaluating three main areas—the current functioning of MSMEs, their role in the economy, and their financial needs. The study findings also addressed possible product development opportunities for financial service providers.

MSC recently conducted a study on the MSME landscape in Fiji with support from DFAT MDF. The study provided recommendations for regulators and policymakers.

Documents: MFS for MSEs study, MSDF MSME study, Fiji MSME landscape study (Sadly None are in public domain) BN 143, BN 169, BN 171, BN 172

Comprehensive reporting on Agent Networks Across 14 Countries

The Agent Network Accelerator (ANA) program identifies the factors responsible for the success or failure of agent networks globally. Our partners include leading providers such as M-Pesa, MTN, Orange, Vodafone, Tigo, Airtel, bKash, and EasyPaisa, as well as the Gates Foundation and UNCDF. Through large-scale quantitative surveys and strategic assessments, ANA evaluates agent networks at both national and provider levels, having analyzed 81 providers across 14 countries and covering 31,500 agents.

MSC teams analyze this data to produce country reports for public consumption and customized business analytics for specific providers. The program has completed baseline research in 14 countries, including Kenya, Tanzania, Uganda, Nigeria, India, Indonesia, Bangladesh, Pakistan, Nepal, the Philippines, Zambia, Senegal, the Democratic Republic of Congo, and Benin. Additionally, second-wave surveys have been conducted in countries like Bangladesh, India, Indonesia, Kenya, Nigeria, Pakistan, Tanzania, and Uganda.

As part of ANA, MSC also conducts qualitative strategic assessments in nascent markets such as Nigeria and Indonesia, where scoping visits and stakeholder consultations help understand ground realities and digital financial service developments. The research team has recently developed benchmarks that define the key drivers of successful agent networks, refining our survey tools for the second wave of research. These benchmarks translate into tailored analytics and rapid assessment tools for providers, focusing on operational metrics that align with their strategic value propositions.

The impact of ANA’s work is evident: 11 providers have revised their agent network strategies, 23 have enhanced their liquidity management systems, 14 have refined their agent selection, training, and onboarding processes, 10 have improved agent monitoring, and 13 have diversified their marketing and communication efforts while strengthening agent value propositions to reduce churn.

Institut Helix: Digital Finance and Agent Network Management Trainings in Francophone Africa

MSC’s Helix Institute offers superior training based on quality data and MSC’s latest expertise and knowledge. Our mission is to support financial service practitioners to equip industry practitioners with strategies and tools to achieve sustainable impact and success in their business and program objectives. All our courses provide practical guidance and tools and facilitate unique peer-to-peer learning opportunities. Most courses include both field visits and action planning processes to help participants implement what they have learned once they return to their institutions.

The Helix Institute delivers training courses in three broad ways:

  1. Bespoke courses tailored to the needs of the institutions that sponsor them;
  2. More generic public offerings;
  3. e-learning courses.

Over the years, The Helix has trained more than 10,000 people drawn from over 450 banks, telecommunication companies, MFIs, and third-party service providers that cumulatively serve more than 1 billion people across the globe. Our trainees drive real and positive changes within their organizations. Our courses for regulators and policymakers inform these key decision-makers and help them navigate the increasingly complex digital age.