Steal This Idea Part 1 - DON’T WORRY ABOUT SAVING MONEY, JUST SPEND

Steal This Idea Part 1

As part of the objectives of this blog to share innovative ideas, I will be sharing some of the ideas I had put efforts in. Some of them have been shared with top management teams, “some fell along the path, and the birds came and ate it up. Some fell on rocky places, where it did not have much soil. It sprang up quickly, because the soil was shallow but when the sun came up, the plants were scorched, and they withered because they had no root. Other seed fell among thorns, which grew up and choked the plants.” Some never saw the daylight.

What is the essence of archiving them on my PC?  Better to share them all. Others may find them useful.

This Part 1 was researched and prepared in April 2012 and will be pasted the way it was presented on PowerPoint slide. ((Full content concealed)...

DON’T WORRY ABOUT SAVING MONEY, JUST SPEND

 

SAVING IS A HASSLE

 

CUSTOMER INSIGHT

Everyone who earns income wish to save some money to meet a particular need or obligation but people tend to self-sabotage their saving goals because they want to “Keep Up With The Joneses.”

THE AVERAGE NIGERIAN LADY

—  Name:  Juliet

—  Age: 28
—  Occupation: Hotel Receptionist
—  Income: N70,000/month
—  Hobbies: Shopping and Traveling
Juliet is trendy & fashionable. Love wears & accessories.; loves to party with friends & family.

Why Do You Find It Hard To Save?

(Results of a sample survey)

—  “I wish i could but my salary is small”.
—  “Diligent savings is difficult; I end up spending it on cloths”.
—  “I often do impulse buying”.
—  “Bank’s interest on deposit is too low; why keep your money in the bank?”
—  “I have too many commitments”.
—  “I love to have fun and that is why I work”.

THE NEED

AS A BANK, HOW CAN WE HELP JULIET OUT?

?

Introducing....

easy Save

Don’t Worry About Saving Money, Just Spend

Easy-save is an automatic means of savings that deducts a particular amount from your account each time there is a debit through any medium be it cash withdrawal, ATM, Internet banking or POS terminals.

The customer does not have to worry about sequential savings. The more you spend, the more you save depending on the auto limit setup.

What easy-save offers
 
—  Automatic transfer set-up (N1,000 and above).
—  Current or Savings (or both) account activation as preferred by the customer.
—  After set up, N1,000 (not withdrawable) is credited into individual’s account to motivate savings.
—  Savings duration- from 6months to 3years.
—  Interest yield on deposit -from 2.5%


THE BREAK DOWN

If low income earners like Juliet set-up a N2,000 auto debit transfer limit, and if average debit transaction on account is 3 times per week; here is what happens:

Customer	Debit Set-up	Average Debit Tranx (x3/week)	Total Debit in a Month	In 6months
Juliet	N2,000	N6,000	N24,000	N144,000
Femi	N5,000	N15,000	N45,000	N270,000
Maxwell	N7,000	N21,000	N63,000	N378,000
				N792,000

The Bank is saving           N792,000

 What’s In It for the Customer?

—  Easy and convenient savings.
—  Interest on deposit from 2.5%
—  Helps to prepare for future obligation.
—  Students/youths will learn to save.

What’s In It for the Bank?

—  It supports the CBN cashlite policy
—  Increased liability
—  New account openings
—  Increased customer base (if publicity is gotten right)
—  Opportunity to sell other products to new customers
—  Increased maket share

 
Practical Modalities

Easy save has a high possibility of increasing the bank’s liability especially for personal banking unit. New accounts will be opened. The bank’s customer base will increase but is the bank prepared enough for this?

Restructure internal account opening process: If daily number of newly opened accounts increases by 30percent, how will it be managed? New internal process must be put in place to ensure the customers and potential customers are not infuriated. How about a campaign like “Open An Account In 20mins”. We should look into the possibility of this.

Thank You!

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Remember.....Idea is nothing. Execution is everthing.