The building blocks for comprehensive pension inclusion already exist in most developing countries...

1
Strong political and regulatory commitment
2
AMCs and insurers looking for new markets
3
Broad-based digital ID and payments adoption
4
Near universal mobile penetration
5
1.2b informal workers with capacity to save
6
Outreach by trusted community networks

... yet there's no easy and simple way for most people to save for old age or manage lifecycle risks.

Supply-side constraints and solutions

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Legacy platforms

Most pension systems run on legacy tech designed for mandatory pensions for the salaried. Incapable of delivering voluntary micro-pensions to the self-employed.

Constraint
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Specialized pensionTech

White-labelled pensionTech platform designed specifically to administer and deliver voluntary micro-pensions to non-salaried individuals.

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High capital cost

Building proprietary pensionTech for non-salaried from scratch is hugely expensive – in terms of capital costs, time-to-market and mistakes in design.

Constraint
...

Low variable cost model

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.

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Pro-rich sales models

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.

Constraint
...

Democratized pensions

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.

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Limited experience

Most countries do not have prior experience with building a micro-pension mass-market among low and middle-income (LMI) segments.

Constraint
...

Expert advisory services

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.

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Demand-side barriers and solutions

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Friction, low access

Cumbersome KYC and complicated paper-based processes inhibit voluntary participation, increase costs and restrict access.

Constraint
...

Simple UI, easy access

Familiar UI-UX of WhatsApp democratizes access and makes account activation as easy and simple as sending a message.

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Affordability constraints

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.

Constraint
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Integrated products

Pensions are layered with micro-SIP and insurance. Citizens enjoy single-window access to an integrated product basket.

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Modest, irregular incomes

LMI segments earn modest irregular incomes. Can't afford large, regular contributions.

Constraint
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Save-as-you-earn

Subscribers are free to save in line with their own capacity and income flows. No penalties for missed contributions

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Myopia, low confidence

Financial illiteracy and negligible experience with formal finance lowers public confidence and retail uptake

Constraint
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Trusted interface, incentives

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.

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pinBox Model: How it works

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Digital marketplace
We use secure APIs to integrate the DFS ecosystem and help “switch-on” a multi-product, omni-channel digital micro-pension marketplace. In a few months. In any country. On a variable cost basis.
...
Simple, easy UI-UX
Citizens use mobiles to access the marketplace and easily set up and manage an integrated, NID-linked pension and insurance account. Use any regulated payment solution to save in line with their own income flows.
...
Trusted interface
Credible field partners have free, plug-and-play marketplace access. Deliver financial literacy, cross-sell and prompt regular savings. Enjoy new fee income, long-term loyalty and a triple bottomline impact.
...
Aggregated demand
Governments and finance firms achieve mass-market coverage but deal only with wholesale assets and aggregated premiums. Unique NID-linked accounts enable targeted fiscal incentives without leakages.
...

How we engage

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Planning & Design

  • Mission Office set-up
  • Supply-side assessment
  • Review of existing legal and regulatory frameworks
  • Demand side study
  • Implementation blueprint: governance framework, digital
...

Build & Pilot-Test

  • pensionTech customization and API integrations
  • Limited scale rollout to field-test IEC tools, product rules, digital processes and uptake
  • Refine implementation strategy, IEC, behavioral interventions and incentives based on field experience
...

Mass-Rollout

  • Upscale deployment
  • Concurrent M&E
  • Periodic review of outcomes and implementation experience
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