The building blocks for comprehensive pension inclusion already exist in most developing countries...
... yet there's no easy and simple way for most people to save for old age or manage lifecycle risks.
Most pension systems run on legacy tech designed for mandatory pensions for the salaried. Incapable of delivering voluntary micro-pensions to the self-employed.
Building proprietary pensionTech for non-salaried from scratch is hugely expensive – in terms of capital costs, time-to-market and mistakes in design.
Countries and finance firms license a customized and ready-to-deploy pinBox pension platform. Avoid large capital investments on building proprietary pension Tech for LMI segments.
Finance firms use tax incentives and/or agents to drive product sales. But sales commissions on small-ticket pensions and insurance are unattractive for agents. Also, most LMI segments are not taxpayers.
Secure APIs help leverage the existing DFS ecosystem to "switch-on" a multi-product omni-channel marketplace. Governments and finance firms don't face millions of tiny transactions. Deal only with wholesale assets/ aggregated premiums.
Most countries do not have prior experience with building a micro-pension mass-market among low and middle-income (LMI) segments.
An expert pinBox team supports product and process architecture design, provides field-tested financial literacy tools, and helps set up an effective customer protection and governance framework.
Cumbersome KYC and complicated paper-based processes inhibit voluntary participation, increase costs and restrict access.
Familiar UI-UX of WhatsApp democratizes access and makes account activation as easy and simple as sending a message.
Most informal workers are uninsured. Use savings and/or expensive loans for risk management. Leaves no room for savings for old age or other lifecycle needs.
Pensions are layered with micro-SIP and insurance. Citizens enjoy single-window access to an integrated product basket.
LMI segments earn modest irregular incomes. Can't afford large, regular contributions.
Subscribers are free to save in line with their own capacity and income flows. No penalties for missed contributions
Financial illiteracy and negligible experience with formal finance lowers public confidence and retail uptake
Credible outreach partners deliver financial literacy, cross-sell the solution to their clients and drive persistency. Also, fiscal incentives (matching contributions) can motivate voluntary adoption and persistency.