Incline was hired for its consulting and analytical expertise to advise two of Kenya’s market-leading banks on how to drive revenue through cash displacement.
Kenya’s population is well positioned in financial inclusion, with 9 out of 10 citizens being financially included. This is mainly due to Safaricom’s M-Pesa (mobile money) platform which has 93% of Kenya’s population registered with its services*. In contrast, only 75% of Kenyan’s have a bank account. However, despite this financial inclusion Kenya is still has heavy cash usage with only 60% of M-Pesa users using their accounts.
Engaging with M-Pesa formed an integral component of our strategy to integrate consumers onto the bank’s system; displacing both cash, and M-Pesa usage.
The analytical solution detailed across an extensive set of documents described a 4-stage approach to cash displacement.
- Segmentation: Identification of patterns across constructed behaviour variables, grouping based on similarity using regression outcome
- Targeting: Spend displacement forecasting made on the assumption of similarity within segments
- Campaigns: Construct key messaging, and optimise channels by segment
- Execution: Files sent to bank with prioritised strategies, and associated individuals, recommended messaging, and expected displacement value
Benefit to client
- Segmentation of customer base into 8 disjoint segments by behaviour
- Identification and benefit-analysis of 9 strategies, rank-ordered in priority per individual customer by maximising joint M-Pesa and cash displacement
- Tailored approach to lead to migration of an estimated 2% of customer base
- Implementation of these strategies forecasted to lead to +13.5% lift of annual spend