The Consultative Group to Assist the Poor (CGAP), administered by the World Bank, has published a report on digital retail banks.
A new generation of digital retail banks is reaching mass-market customers with promising results for financial inclusion. They have the capacity to simultaneously overcome challenges faced by customers themselves & obstacles encountered by financial services providers (FSPs) in building an offering with depth and scale.
Digital banks analyze financial & nonfinancial customer data and tailor their products to the needs of #unbanked individuals & #underserved customers. This approach allows #digitalbanks to offer a better customer experience. Products are priced more attractively than the market average because the modern #technology stack underlying digital bank operations unlocks cost efficiencies. Alternative, branch-lite distribution channels extend the reach of #digital banks to underserved areas.
This Working Paper by Ivo Jenik, Arisha Salman, & Mark Flaming tells the stories of three #banks in #emergingmarkets: TymeBank in South Africa, Kotak 811 in #India, & UnionBank in the #Philippines. It takes a deep dive at their business models & how they are contributing to #financialinclusion.
