Rich Bialek, CEO June 24, 2015 Value Proposition for Prepaid Market Segmentation
Rich Bialek, CEOJune 24, 2015
Value Proposition for Prepaid Market Segmentation
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Current State of Prepaid in Africa
Sudan
Algeria
Niger
AngolaZambia
BotswanaMadagascar
Mauritius
Seychelles
South Africa
Namibia
Morocco
Mauritania
Lybia Egypt
ChadMali
NigeriaEthiopia
Eritrea
Somalia
Democratic Republic
of the Congo
Central African Rep.
Tanzania
Kenya
Mozambique
Comoros
CongoUganda
Cape Verde
Senegal
Liberia
Coted‘Ivoire
Ghana
Burkina Faso
Cameroon
Gabon
Equatorial Guinea
Sao Tomé and Principe
Gambia
Sierra Leone
Tunisia
Guinea-Bissau
TogoBenin
Lesotho
Swaziland
Zimbabwe
Malawi
Rwanda
GuineaDjibouti
Burundi
South Sudan
Developing
Emerging
Advanced
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Prepaid Needs by Market
Developing Markets
Emerging Markets
Advanced Markets
General Purpose Card
Basic Segmentation
Advanced Targeting
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Segmentation – Developing Markets
For developing prepaid markets, identify segments that meet three criteria:
1. High profit potential
2. Large customer base
3. Relatively easy to launch
Two examples are Travel and Salary card programs.
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Travel Cards
Justification• 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
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Salary Cards
Justification• 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
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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.)
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Gen Y Cards
Justification• 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
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University ID Cards
Justification• 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
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Virtual Cards
Justification• 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, e-mail, and in-app advertising
• Promote added versatility of a physical card• Use customer data to promote targeted
banking products (home loans, etc.)
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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
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GTP Example
GTP has launched the Market Ready line of
products to enable bank partners to reach target
segments quickly, inexpensively, and successfully.
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White-Label Travel Card
GTP assists the bank with card/carrier
design, print and digital advertising,
and strategies for a successful launch.
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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?