Inclusive marketing strategies enhance financial service accessibility for vulnerable populations
Category: User-Centred Design · Effect: Moderate effect · Year: 2021
Banks can effectively reach and serve financially vulnerable customers by developing tailored product portfolios, employing innovative marketing approaches, and leveraging inclusive technologies.
Design Takeaway
To serve financially vulnerable populations, design and marketing efforts must focus on creating user-friendly products, accessible communication channels, and supportive educational resources.
Why It Matters
Understanding the unique needs and challenges of financially vulnerable segments is crucial for expanding market reach and fostering financial inclusion. This research highlights how strategic product development and communication can bridge the gap between financial institutions and underserved communities.
Key Finding
Financial institutions are successfully engaging vulnerable customers through specialized products, creative marketing, and technology adoption.
Key Findings
- Banks develop diverse product portfolios to cater to different customer segments.
- Innovative traditional marketing schemes are employed to reach target audiences.
- Inclusive technologies are utilized to extend services to the unbanked and financially vulnerable.
Research Evidence
Aim: How do financial institutions in emerging economies market their services to financially vulnerable customers?
Method: Multiple case study
Procedure: Researchers conducted semi-structured interviews with directors of three commercial banks and two microfinance banks, and analyzed their annual reports and archival images.
Context: Financial services marketing in an emerging economy (Nigeria)
Design Principle
Design for inclusion by understanding and addressing the specific needs and barriers faced by underserved user groups.
How to Apply
When designing financial products or marketing campaigns for diverse user groups, consider their specific financial literacy levels, access to technology, and preferred communication methods. Pilot test solutions with representative users before full-scale implementation.
Limitations
The study is focused on a specific emerging economy and may not be generalizable to all contexts. The findings are based on a limited number of case studies.
Student Guide (IB Design Technology)
Simple Explanation: Banks can reach people who don't have bank accounts or struggle with money by creating special products, using clever ads, and using technology that's easy for everyone to use.
Why This Matters: Understanding how to market to diverse user groups, especially those facing financial challenges, is key to creating inclusive and impactful designs.
Critical Thinking: To what extent can the marketing strategies identified in this study be transferred to developed economies, and what adaptations would be necessary?
IA-Ready Paragraph: This research demonstrates that successful engagement with financially vulnerable customers in emerging markets requires a multi-faceted approach, integrating tailored product development, innovative marketing strategies, and the adoption of inclusive technologies. This highlights the importance of a user-centred design process that deeply understands the specific barriers and needs of underserved populations.
Project Tips
- When researching user needs, consider the socio-economic context of your target audience.
- Explore how different communication channels can be adapted for users with varying levels of digital literacy.
How to Use in IA
- Use this research to justify the need for user-centred design approaches when targeting specific market segments in your design project.
Examiner Tips
- Demonstrate an understanding of how market context influences design and marketing strategies.
Independent Variable: ["Product development portfolios","Innovative marketing schemes","Inclusive technologies"]
Dependent Variable: ["Reach and extension of services to unbanked and financially vulnerable customers"]
Controlled Variables: ["Type of financial institution (commercial bank vs. microfinance bank)","Emerging economy context"]
Strengths
- Provides empirical evidence from an emerging market context.
- Utilizes a mixed-methods approach combining interviews and document analysis.
Critical Questions
- What are the ethical considerations when marketing financial services to vulnerable populations?
- How can the long-term financial well-being of these customers be ensured beyond initial service access?
Extended Essay Application
- Investigate the effectiveness of specific inclusive technologies in improving financial literacy and access for marginalized communities in a chosen region.
Source
Marketing bank services to financially vulnerable customers: evidence from an emerging economy · International Journal of Bank Marketing · 2021 · 10.1108/ijbm-07-2020-0379