BIMA Insights & Research

Understanding the emerging consumer is the first step in reaching them


Insight into the emerging consumer remains decidedly limited.This lack of understanding constrains innovation, resulting in a failure to design products and distribution models that work for low-income families. BIMA's customer base represents one of the largest collection of mobile financial services clients, giving us unique insight in to the people who will shape the future of this nascent industry. We are committed to sharing our learnings in order to promote better understanding of the need, behaviours and ambitions of low-income families.

Our first research report shares the results of a survey of over 4,000 respondents living at the 'bottom of the pyramid' in 10 developing markets. The study examines demographics, the effectiveness of mobile to reach previously unbanked / excluded families, and consumer preference and behaviours.

It also provides a call to action for regulators and mobile operators to address the lack of regulatory framework for Mobile Financial Services, which constrains the ability of the industry to deliver effectively while protecting vulnerable consumers.

DOWNLOAD BIMA INSIGHT REPORT: UNDERSTANDING THE EMERGING FINANCIAL SERVICES CONSUMER

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DEMOGRAHICS AT A GLANCE


MOBILE CAN REACH EMERGING CONSUMERS ON AN UNPRECEDENTED SCALE

75%

ACCESSING INSURANCE FOR FIRST TIME


93%

INCOME >$10 PER DAY


TECH-SAVVY CONSUMERS AGED 18-35 WILL DRIVE GROWTH


THE ROLE OF MOBILE IN REACHING UNINSURED

INTRODUCTION BY CRAIG CHURCHILL, CHAIR OF MICROINSURANCE NETWORK


It is ironic, and indeed unfortunate, that the people who are most vulnerable to risk, low-income households, the people who need insurance the most, are least likely to have it. They are not likely to have insurance because they are not seen as a profitable market by insurance companies, given the high cost of servicing a prospective customer with limited disposable income. And because insurance companies do not have products for this market segment, there is also very little demand for insurance by low-income households.

To break this vicious cycle of no supply-no demand, BIMA is stepping in the middle, leveraging mobile phones to solve both problems at the same time. On the supply side, by using the mobile phone for enrolment, premium collection, renewals and customer engagement, BIMA minimizes transaction costs while serving huge volumes of customers, thus creating a business model that previously was not possible.

On the demand side, by making the product affordable and extremely easy to access, and providing consumer education through its army of agents, BIMA is making it possible for a tepid market to try insurance out and see how it works. The fact that three-quarters of its 24 million subscribers are first-time insurance clients is a testament to this revolutionary approach, breaking down barriers to enable those who need insurance the most to be able to purchase it.

Given the power of technological advancements to dramatically reshape the insurance market, hopefully regulators will carefully consider ways to update the regulatory framework to accommodate the innovative approaches necessary to foster financial inclusion.

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LOW-INCOME CONSUMERS CAN AND WILL PAY FOR SERVICES THAT ARE VALUABLE TO THEIR FAMILY

UNLOCKING THE FULL POTENTIAL OF MFS


The full potential of MFS is yet to be unlocked. Outdated regulation or slow regulatory processes often stifle innovation, and mobile Operators have been slow to make changes required to capitalise on the inherent commercial opportunity. Operators and regulators alike need to work together to create an environment that supports innovation and builds an accessible market. This will set the stage for MFS to ourish and drive inclusion at an international level. 

RECOMMENDATIONS FOR Operators

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75%

no other insurance

90%

Prefer mobile payment channels

RECOMMENDATIONS FOR REGULATORS

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