While it was no surprise to us that growth continues to be the #1 challenge for business leaders what did surprise us somewhat was that, in a Bain & Co.'s survey, three out of four executives said that finding the next wave of profitable growth will be the most difficult in their businesses' history.
We at iProceed believe that growth is never there for everyone to just see and grab; innovative companies connect the dots to identify growth opportunities. (Related link: A series of articles on new growth opportunities identification). Over next couple of weeks, we will be discussing a series of new growth opportunities identified by us. In this article, we want to start off by discussing a tremendous growth opportunity to serve those Americans (and while we have not yet profiled consumers outside the US, the number is much larger) that do not have any relationship with a bank for whatever reason.
Attributes of non-banking American consumers
We at iProceed believe that growth is never there for everyone to just see and grab; innovative companies connect the dots to identify growth opportunities. (Related link: A series of articles on new growth opportunities identification). Over next couple of weeks, we will be discussing a series of new growth opportunities identified by us. In this article, we want to start off by discussing a tremendous growth opportunity to serve those Americans (and while we have not yet profiled consumers outside the US, the number is much larger) that do not have any relationship with a bank for whatever reason.
Attributes of non-banking American consumers
- Estimated to be approximately 30-35 million.
- Over half of them hold steady jobs and receive regular paychecks.
- Almost half of them are interested in ecommerce and other benefits of having a credit card.
How to serve non-banking consumers?
- Just because they are disadvantaged in some way, don't try to screw them. Learn from the example set by many banks that have allowed Mexican immigrants to open bank accounts without insisting on a US driver's license.
- Along the same lines, try not to charge very high fees for the service. Lower your risk in other ways but not by screwing the consumers - it will only turn them away and any business model based on screwing your consumers is not a robust model.
- Make it convenient. One major reason they are not in the mainstream banking system is that it continues to be cumbersome and inconvenient for vast majority of low-income people. Understand their needs and then design your offering
Related article: How to develop a high-value company using ethical practices