Seeing Profitability Through a Banking Lens Case Solution & Answer

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The two things that emerging markets do not have – access to finance and loans – are the two basic factors identified as key drivers of economic growth. However, for banks, lack of access to financial services and the transfer of money in these markets represents a great business opportunity, especially among low-income segments and small and medium enterprises (SMEs). This article examines three promising new business models: upscaling, where nonbanks become existing local banks, extension, so the traditional banking infrastructure is adapted to serve new segments and banking in the open campaign , which involves the creation of new MFIs. All require a willingness to adapt to a very different type of clientele, and take an innovative and proactive to the challenges of risk assessment and effective approach. For companies in other sectors looking to expand in emerging markets, these three business models can serve as a guide. Using lessons learned from the banking sector, the authors urge all companies to see the performance of emerging markets through new eyes: A study of social diversity in depth, local partnerships and use of new technologies to compensate structural weaknesses and inefficiencies.
by
Before Francesc
Javier Santoma
Source: IESE Insight Magazine
5 pages.
Release: September 15, 2011. Prod #: IIR057-PDF-ENG
View through a case of lens solution bank profitability