payment strategies for irregular income streams in the lower...
TRANSCRIPT
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Payment strategies for irregular income streams in the lower income demographic
Study goal: How do they manage their household finances on irregular income streams?
Study focus: Rural bop households in Philippines, India and (remotely) in Malawi
Study Findings: Actionable insights for business transaction models (design of products and services)
Seasonality
Lack of liquidity/rapid conversion of cash to goods
Increase span of control over timing and amount for the end user (why prepaid works)
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Framing the problem correctly
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What led to this research project – nicknamed “prepaid economy”
• Observed “failures” in the marketplace such as consumer durables purchased by time payments, health schemes, microfinance loans, insurance programs
• Problem statement: Inherent conflict between rigid payment plans and irregular income streams
• Yet prepaid models very successful – what can we learn about how and why they work to inspire better design of products and services for informal and cash based economy?
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Exploratory Research using design ethnography methods
• Identifies gaps in existing solutions versus customer needs – unmet needs, inappropriate or insufficient solutions
• Uncovers opportunities for innovation
• Leads to insights for relevant and appropriate products, services and messaging
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Sampling across a scale of uncertainty of income – time and money
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Rapid prototyping in the field refines focus and orientation
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Complex protocol distilled into to three and half simple questions:
• How do you manage your daily expenses?• What do you when there is an emergency?• How do you plan big ticket (expected) items – buying a
house, a funeral or a wedding etc?• And is there any influence of seasonality in your income
stream over the course of the natural year?
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emerging futures lab
Narrow perspective, broad focus – regional clustering
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Seasonality
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emerging futures lab
Pattern recognition
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Broader perspective but narrower focus – behavioural clustering
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emerging futures lab
Stored wealth
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emerging futures lab
Stored wealth
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emerging futures lab
Cashless transactions
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emerging futures lab
Cashless transactions
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emerging futures lab
Investment
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emerging futures lab
Investment
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emerging futures lab
Insurance
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emerging futures lab
Conversion to goods
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emerging futures lab
Conversion to goods
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emerging futures lab
Cooperative Economy
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Niti Bhan
www.nitibhan.com
This research study was carried out with the aid of a grant from the iBoP Asia Project (http://www.ibop-asia.net), a partnership between the Ateneo School of Government and Canada's International Development Research Centre (www.idrc.ca)