Presentation on theme: "Value Proposition for Prepaid Market Segmentation"— Presentation transcript:
1 Value Proposition for Prepaid Market Segmentation Rich Bialek, CEOJune 24, 2015
2 Current State of Prepaid in Africa TunisiaMoroccoAlgeriaLybiaEgyptCape VerdeMauritaniaMaliSenegalNigerChadEritreaGambiaSudanBurkinaFasoGuinea-BissauDjiboutiGuineaNigeriaSierra LeoneCoted‘IvoireEthiopiaGhanaCentralAfrican Rep.SouthSudanBeninSomaliaLiberiaCameroonTogoUgandaEquatorial GuineaCongoKenyaSao Tomé and PrincipeGabonDemocraticRepublicof the CongoRwandaBurundiTanzaniaAdvancedSeychellesAngolaComorosMalawiZambiaDevelopingZimbabweNamibiaMozambiqueMauritiusEmergingBotswanaMadagascarSouth AfricaSwazilandLesotho
4 Segmentation – Developing Markets For developing prepaid markets, identify segments that meet three criteria:High profit potentialLarge customer baseRelatively easy to launchTwo examples are Travel and Salary card programs.
5 Travel Cards Justification Marketing High profit potential with international travelMarket to business and holiday travellersSafer and simpler than cashProtects debit and credit accountsMarketingTarget companies needing to simplify per diem and expense reportingPromote worldwide acceptance of prepaidPartner with local travel agenciesPrint, billboard and radio advertising
6 Salary Cards Justification Marketing Lower profit per card, but predictable monthly revenue streamMarket to existing corporate clientsReduces employer expensesEmployee financial inclusionMarketingTarget companies currently paying with cash or chequesPromote the safety and cost reduction vs. handling cashPresent 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 productsPurchase 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 lifestyleFrequent digital purchases (apps, music)Desire for online shopping capabilityMore educated and affluent – future business and government leadersMarketingDevelop banking programs that fit – not one-size-fits-allCard and advertising should be exciting and innovativePartner with online shopping sites
9 University ID Cards Justification Marketing Low revenue, but predictable monthly revenue streamAlso includes a faculty salary/travel cardProvides their first banking experienceEstablishes bank loyalty just as they’re entering the workforceMarketingDevelop ongoing relationship with students (and parents) throughout university careerAdvertise on campus to explain the value and functionality of their prepaid cardProvide a new card as they graduate to extend relationship
10 Virtual Cards Justification Marketing Reach mass audience with low-KYC, low-velocity digital cardSmall revenue per transaction, but high transaction countProvides opportunity to upgrade to a physical cardMarketingDigital-only experience provides opportunity for SMS, , and in-app advertisingPromote added versatility of a physical cardUse customer data to promote targeted banking products (home loans, etc.)
11 Government Disbursement Cards JustificationLarge civil service population in many countriesLow profit, but frequent usage and predictable revenue streamGovernment jobs often transition to corporate positionsIncorporates aspects of ID cards, travel cards, and payroll cardsMarketingSeek out large groups (military, pensions, etc.) where the card adds most valuePromote additional banking products that fit target audience
12 GTP ExampleGTP 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 SummaryIn 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?