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Value Proposition for Prepaid Market Segmentation

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Presentation on theme: "Value Proposition for Prepaid Market Segmentation"— Presentation transcript:

1 Value Proposition for Prepaid Market Segmentation
Rich Bialek, CEO June 24, 2015

2 Current State of Prepaid in Africa
Tunisia Morocco Algeria Lybia Egypt Cape Verde Mauritania Mali Senegal Niger Chad Eritrea Gambia Sudan Burkina Faso Guinea-Bissau Djibouti Guinea Nigeria Sierra Leone Cote d‘Ivoire Ethiopia Ghana Central African Rep. South Sudan Benin Somalia Liberia Cameroon Togo Uganda Equatorial Guinea Congo Kenya Sao Tomé and Principe Gabon Democratic Republic of the Congo Rwanda Burundi Tanzania Advanced Seychelles Angola Comoros Malawi Zambia Developing Zimbabwe Namibia Mozambique Mauritius Emerging Botswana Madagascar South Africa Swaziland Lesotho

3 Prepaid Needs by Market
Emerging Markets General Purpose Card Developing Markets Basic Segmentation Advanced Markets Advanced Targeting

4 Segmentation – Developing Markets
For developing prepaid markets, identify segments that meet three criteria: High profit potential Large customer base Relatively easy to launch Two examples are Travel and Salary card programs.

5 Travel Cards Justification Marketing
High profit potential with international travel Market to business and holiday travellers Safer and simpler than cash Protects debit and credit accounts Marketing Target companies needing to simplify per diem and expense reporting Promote worldwide acceptance of prepaid Partner with local travel agencies Print, billboard and radio advertising

6 Salary Cards Justification Marketing
Lower profit per card, but predictable monthly revenue stream Market to existing corporate clients Reduces employer expenses Employee financial inclusion Marketing Target companies currently paying with cash or cheques Promote the safety and cost reduction vs. handling cash Present to industry groups in your country

7 Segmentation – Advanced Markets
For advanced prepaid markets, identify segments that expand the customer base and prepare customers for other banking products Purchase habits require a card (online shopping, travel, etc.) Potential for long-term banking relationship (debit/credit, home loans, business owners, etc.)

8 Gen Y Cards Justification Marketing
20-35 year-olds more likely to incorporate smartphones into their lifestyle Frequent digital purchases (apps, music) Desire for online shopping capability More educated and affluent – future business and government leaders Marketing Develop banking programs that fit – not one-size-fits-all Card and advertising should be exciting and innovative Partner with online shopping sites

9 University ID Cards Justification Marketing
Low revenue, but predictable monthly revenue stream Also includes a faculty salary/travel card Provides their first banking experience Establishes bank loyalty just as they’re entering the workforce Marketing Develop ongoing relationship with students (and parents) throughout university career Advertise on campus to explain the value and functionality of their prepaid card Provide a new card as they graduate to extend relationship

10 Virtual Cards Justification Marketing
Reach mass audience with low-KYC, low-velocity digital card Small revenue per transaction, but high transaction count Provides opportunity to upgrade to a physical card Marketing Digital-only experience provides opportunity for SMS, , and in-app advertising Promote added versatility of a physical card Use customer data to promote targeted banking products (home loans, etc.)

11 Government Disbursement Cards
Justification Large civil service population in many countries Low profit, but frequent usage and predictable revenue stream Government jobs often transition to corporate positions Incorporates aspects of ID cards, travel cards, and payroll cards Marketing Seek out large groups (military, pensions, etc.) where the card adds most value Promote additional banking products that fit target audience

12 GTP Example GTP has launched the Market Ready line of products to enable bank partners to reach target segments quickly, inexpensively, and successfully.

13 White-Label Travel Card
GTP assists the bank with card/carrier design, print and digital advertising, and strategies for a successful launch.

14 Summary In summary, segmenting your customer base can help your bank identify profitable and untapped markets that increase card revenue, enhance bank loyalty, and drive demand for other banking products. Questions?

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