Fraym for

FINANCIAL SERVICES

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Identify unbanked potential customers with latent demand for financial services

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Identify prospective branch locations to service these customers

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A commercial bank in Tanzania sought to expand its customer base. It came to Fraym with two requests:

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Construct Target Profile

Fraym located households with and without a bank account and identified geographic concentrations of banked households:

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Tanzanians

Almost 22 million Tanzanians, or 40 percent of the population, live in a household with at least one bank account.

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live in Dar es Salaam

One in five of these banked Tanzanians live in Dar es Salaam, where almost 80 percent of people live in a banked household.

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live in Mwanza and have a bank account

The region of Mwanza has almost 2 million people living in a house with a bank account, however, the client only has one branch in the region.

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Enhance Profile With Socioeconomic Characteristics

Fraym compared the socioeconomic characteristcis of banked vs. unbanked households to more accurately target prospective customers:

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Banked households are more likely to own assets like refrigerators and televisions.

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Heads of households with a bank account are more likely to be male and better-educated.

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On average, banked households out-earn unbanked households by $150 USD per month.

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Identify Underserved Segments

Fraym combined the consumer profile with earnings data to identify households likely to adopt bank accounts:

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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.

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3 million (or about 30 percent) of Tanzanian households earn between $200-300 per month.

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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.

Money Euro Bank of Tanzania Bill one and two Euro Coins

CONCLUSION

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.

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