Identify unbanked potential customers with latent demand for financial services
Identify prospective branch locations to service these customers
A commercial bank in Tanzania sought to expand its customer base. It came to Fraym with two requests:
Enhance Profile With Socioeconomic Characteristics
Fraym compared the socioeconomic characteristcis of banked vs. unbanked households to more accurately target prospective customers:
Banked households are more likely to own assets like refrigerators and televisions.
Heads of households with a bank account are more likely to be male and better-educated.
On average, banked households out-earn unbanked households by $150 USD per month.
Identify Underserved Segments
Fraym combined the consumer profile with earnings data to identify households likely to adopt bank accounts:
The largest increase in the proportion of households owning a bank account occurs when monthly income rises from $200-300 to $300-400 per month.
3 million (or about 30 percent) of Tanzanian households earn between $200-300 per month.
Locate Potential Branch Locations
Fraym used this enhanced consumer profile to estimate the number of potential financial services consumers in 10x10 kilometer grids across all of Tanzania, revealing promising concentrations of target customers.
Using this data, Fraym pinpointed 15 potential branch locations for further exploration.
Fraym uncovered that areas near Lake Victoria, specifically Kagera and Simiyu, had the highest concentrations of potential customers. In Kagera only 19 percent of people have a household bank account, while 40 percent of the population earns between $200-400 per month.