The Nigerian Financial Industry requires new approaches and new lenses to spot new opportunities. Our brief presentation explores the problem and potential solutions in an innovative manner

1. The Latent Profit PoolNON-CUSTOMERS

2. Happy 100th Anniversary
1918 - 2018
EVERY FINISH LINE IS THE BEGINNING OF A NEW RACE
100-years of Insurance Service

3. Caveat
RELYING ON YESTERDAY’S SUCCESSES IS FAR MORE RISKY THAN CONSTANTLY INNOVATING –PETER DRUCKER
When professionals are not humble enough to admit there is a
problem, there can ever be a solution AND THE PROBLEM WILL
PERSIST to a point were it may be too late or when it may take only
a miracle to solve it.
Be Open and Humble

4. SITUATIONAL ANALYSIS

5. Where We Are -Quick Facts (Insurance)
INSURANCE INDUSTRY FACTS AND FIGURES
0.9% of Nigerians Insured
<1% of Nigeria’s GDP <2% of Nigerian Adult Insured
>50 Insurance firms
DATA SOURCES: EFINA

6. Where We Are -Quick Facts (Pensions)
PENSIONS INDUSTRY FACTS AND FIGURES
10.8% of Nigerian Workers
8.42% of Nigerian’s GDP ??% of Nigerian Adult Penetration
51 Operators
DATA SOURCES: PENCOM, NBS

7. THE FINANCE INDUSTRY MUST REINVENT ITSELF OR DIE.
The biggest threat to the Financial Industry lie outside the industry
NOBODY CAN AFFORD THE LUXURY OF COPYING THE PAST –URSULA BURNS

8. Where Are We
THE FINANCE INDUSTRY REQUIRES PALNNED ABANDONMENT- ASK THE TOUGH QUESTIONS
•What do we need to change in order to innovate and grow?
•What should we sacrifice today to achieve what we ought to be tomorrow?
•What assumptions of business do we hold which no longer fits into existing
reality?
•Who should be our customer?
•What should be our strategy?

9. Where Are We
INSURANCE AND PENSIONS ARE PROOF THAT FINANCIAL SUPPLY OVERWHELMINGLY OUTSTRIPS FINANCIAL DEMAND
1.9%
98.1%
Insured Adults in Nigeria
Uninsured Adults in Nigeria
96.4m1.8m
Frequently Held Insurance Category
• Medical/ Critical illness (41.3%)
• Car/Vehicle/Motorbikes (19.7%)
• Life assurance (17.8%)
DATA SOURCES: EFINA, NIA, DEDUCTIVE LOGIC
N201bn As at 2016
N Guess As at 2016

10. Where Are We
INSURNCE AND PENSIONS ARE PROOF THAT FINANCIAL SUPPLY OVERWHELMINGLY OUTSTRIPS FINANCIAL DEMAND
4.7%
21.6%
Financially Inclusion in 6-years
Anticipated Financial Inclusion in 3-years
0.78% inclusion rate per annum
6 years
2010 2016 2017 2020
7.2% inclusion rate per annum
923%
3 years
DATA SOURCES: EFINA, DEDUCTIVE LOGIC

11. Where Are We
NIGERIA’S EFFORT HAS ADDRESSED SUPPLY SIDE FINANCE BUT DEMAND SIDE NEEDS TO BE FIXED IN ORDER TO YEILD RESULTS
DEMAND SIDESUPPLY SIDE
EfinA
CBN
Commercial Banks
Mobile Money Operators
Insurance Firms
Pensions Firms
MFBs
etc
Who is addressing the demand side?

12. THE MAGIC IS IN FIXINGTHE DEMAND SIDE

13. Where Are We
IF WE KEEP DOING WHAT WORKED IN THE PAST WE ARE BOUND TO FAIL
CURRENT
OPPORTUNITY AND GROWTH SPACE
96.4m1.8m
DATA SOURCES: EFINA
The result of a High Supply-Low Demand market

14. Where Are We
IF WE KEEP DOING WHAT WORKED IN THE PAST WE ARE BOUND TO FAIL
CURRENT
OPPORTUNITY AND GROWTH SPACE
96.4m
1.8m
DATA SOURCES: EFINA
Same
Approach
Same
Approach
Different
Approach
Different
Approach

15. WE CANNOT SOLVE A PROBLEM BY USING THE SAME THINKING THAT GENERATED IT
Business Unusual
WE CAN TAILOR-FIT FINANCIAL SERVICES
FOR NON CUSTOMERS BUT WE MUST USE
DIFFERNET ASSUMPTIONS AND A NEW
THEORY OF BUSINESS

16. CUSTOMERS AND NON-CUSTOMERS ARE LIKE MEN AND WOMEN- THEY REASON DIFFERENTLY
New Assumptions

17. Where Are We
TO FIX THE INDUSTRY, WE MUST FIT THE INDUSTRY TO CURRENT REEALITIES
ocus
nnovation
rustTT
II
FF

18. CHANGE THE FOCUS

19. FOCUS
Currently, Nigeria’s median age is 18.4 years and that of the
African continent put at 19.4 years. ABOUT 70% OF THE NIGERIAN
POPULATION IS BELOW 30-YEARS
Does the underlying assumptions in various sectors fit this demography?
Does the nature and application of current products/services fit in?
Proper fit in one generation has become a misfit in another.
WHAT GOT US HERE WON’T GET US THERE DUE TO SOCIO-DEMOGRAPHIC CHANGES, LIFESTYLE, ETC
“We need to give young people more access to capital so they can expand
their ideas. When a young person goes to a bank, people don’t see ideas
they just see risk, risk and risk” President, African Development Bank
• Median age in the EU is 42.9 years (index mundi)
• Median age in the US is 38.1 years (index mundi)
• Median age in Nigeria is 18.4 years (index mundi)
• Median age in Kenya is 19.7 years (index mundi)
• Median age in Africa is 19.4 years (world meters)

20. FOCUS
WHAT IS DRIVING THE CHANGES HERE
B

21. 26-54 years 55 above<25 years
7.0 %30.5%62.5%
Overwhelming Majority
FOCUS
NIGERIA HAS UNDERGONE HUGE DEMOGRAPHIC CHANGES, HAS YOUR BUSINESS STRATEGY CHANGED PROPORTIONALLY?
Large Minority Fringe Minority

22. <30 YEARS OLD
FOCUS
OUR STATISICAL INFENRENCE IS THAT MAJORITY OF FINANCIALLY EXCLUDED ADULTS ARE 18 – 29 YEARS OLD
70.0% of Nigeria's
Population below 30
41.6% of Nigeria's Adults
are financially excluded
18 YEARS ABOVE
18- 29 YEARS OLD
41.6%70%
Majority of Nigeria's
Adults are financially
excluded sits here

23. FOCUS
By 2050:
• Median age in Nigeria will be 22.4 years (world meters)
• Median age in Kenya will be 27.5 years (world meters)
• Median age in Africa will be 24.8 years (world meters)
THE AFRICAN AND NIGERIAN MARKET ARE YOUTH MARKETS - IS THIS AN OPPORTUNITY OR A THREAT FOR US?
NIGERIA IS POISEDTO BECOMETHE 3RD LARGEST
NATIONWHEN ITS POPULATION SURPASSESTHAT OF
THE US BY 2050- (UN projections) and that’s just 32-years
away. “Africa has more people aged under 20-years than
anywhere in the world and the continent's population is set
to double to 2-billion by 2050.” BBC Report

24. • No need targeting a youth segment- Nigeria is a youth
market. The other segments are just appendages.
• Copy and paste wont work. These folks are different and
require a different approach.
OUR BUSINESS HAS TO CHANGE IN FORM IN ORDER TO SERVE THE NEEDS OF A YOUNGER GENERATION
The next generation is demanding more – something different, something
INNOVATIVE. Is our product/ service appealing to youths? The innovation strategy
for this demography will be different. It’s sink or swim. Whether this is an
opportunity or a treat is up to us – the future is here, Live it.
FOCUS

25. Bank accounts could disappear within 15
years- Marcus Schenck,
Co-Head of investment Banking, Deutsche Bank
THE FUTURE AIN’T OUT THERE, ITS IN HERE – WE CREATE IT THROUGH INNOVATION.
The only way to survive extinction is to
innovate and prepare for the future.
FOCUS

26. THE BRANDS THAT DOMINATE
TODAY MAY NOT DONINATE
1- GENERATION FROM
TODAY.
THE ASSETS THAT BIG
COMPANIES HAVE BUILT ARE
BECOMING COUNTER
PRODUCTIVE LIABILITIES – DANIEL
SCHRIEBER

27. THIS HAPPENS OFTENTO BIG BRANDS

28. Rules nTools
Businesses and Competitors
S/n Business Industry Competitors Industry
1 SilverbirdCinemas Entertainment ?
2 Mikano Generator Power ?
3 MTN Telecoms ?
4 DSTv PayTV ?
5 Harpic FMCG ?
6 Shoprite FMCG ?
7 Taxi Transportation ?
Who is a ‘Competitor’

29. Rules nTools
Telecoms Industry Automobile Industry PayTV Industry
IT Industry Education Industry Banking Industry
1 2
4 5
3
6

30. Rules nTools
Telecoms Industry
Automobile Industry
PayTV Industry
IT Industry
Education Industry
Banking Industry

31. Rules nTools
Telecoms Industry
Transportation Industry
PayTV Industry
IT Industry
Education Industry
Banking Industry
IT Industry
Airtlel, MTN
Glo
Taxis
BRT
Uber
OgaTaxi
Little Cab
Skype
Whatsapp
DSTv
GoTv
Startiimes
Disney Jnr
Learning
Coursera
DexLearn
EdX
Unilag
LBS
Netflix
IrokoTV
Suntrust
Mastercard
Interswitch
Zenith
GTBank
Ecobank
How industries co-exists
Microsoft
Omatek
MainOne
Retail
Industry
Jumia
Konga

32. INCREASED COMPETITION IS COMING FROM OURSIDE THE FINANCIAL SECTOR AND PROPERLY TARGETING YOUTHS
Whatsapp and Facebook are already targeting this generation with
financial services that can create massive competition for the banks
thus banking will be possible with little recourse to banks.
FOCUS

33. WHEN A 17TH CENTURY SERVICE IS FORCED ON A 21ST CENTURY GENERATION, THE REUSLT IS A MISFIT
FOCUS
A service invented in the 17th Century is forced
down to a generation in the 21st century in a copy
and paste manner
IT WILL NOT FIT IN BUT WE CAN TAILOR-FIT
FINANCIAL SERVICES FOR THIS GENERATION

34. BUILD TRUST

35. TRUST
WHAT IS DRIVING THE CHANGES HERE

36. TRUST IS LIKE PERFUME. YOU CAN SEE IT BUT YOU CAN PERCEIVE THE FRAGRANCE.
Do you check for expiry date or insects before
you drink a Coke? That’s because you trust the
brand. Do your non-customers trust you like that
TRUST

37. ATRUSTED SERVICEWITH 138M CUSTOMERS IN 107 COUNTRIES

38. TRUST

39. TRUST

40. ITS EASIER TO PUT HUMPTY-DUMPTY TOGETHER AGAIN THAN TO BUILD TRUST ONCE BROKEN.
TRUST

41. TRUST IS THE BEDROCK OF ANY KIND OF RELATIONSHIP- WHEN ITS LOST BUSINESS DIES.
People trusted MMM, Nospetco and the likes. How can we build trust
so non-customers can have confidence in us? Can they trust you with
their assets with fear of ‘stories’ in the future?
TRUST

42. INNOVATION

43. EVERYTHING THAT WORKS IS WORKED UPON

44. INNOVATION
WHAT IS DRIVING THE CHANGES HERE

45. GLOBALTREND , LOCAL IMPACT

46. GLOBALTREND ,LOCAL IMPACT

47. BUSINESS AS USUAL HAS TO BECOME BUSINESS UNUSUAL BY APPLYING STRATEGIC INNOVATION
GLOBALTREND ,LOCAL IMPACT

48. GLOBALTREND ,LOCAL IMPACT
BUSINESS AS USUAL HAS TO BECOME BUSINESS UNUSUAL BY APPLYING STRATEGIC INNOVATION

49. WE MUST MOVE FROM BEST PRACTICE TO NEXT PRACTISE
GLOBALTREND ,LOCAL IMPACT

50. INNOVATION
BUSINESS AS USUAL HAS TO BECOME BUSINESS UNUSUAL BY APPLYING STRATEGIC INNOVATION
• How do we capture this demography.
• What is the definition of risk relative to this generation?
• How do we mitigate and manage those risks?

51. WE CAN SERVE CORNFLAKES TO A GENERATION THAT WON’T EAT CORN- SAME PRODUCT, DIFFERENT FORM.
• Create an augmented services layer in order to spur
innovation and take mitigated risks
• It also helps build a layer of trust
Core Business
Augmented
Services
INNOVATION

52. INNOVATION

53. WE CAN SERVE CORNFLAKES TO A GENERATION THAT WON’T EAT CORN- SAME PRODUCT, DIFFERENT FORM.
Core Service
Augmented Services
INNOVATION
Black
Panther
Comic
Movie
Video Game
Cartoon
Merchandize
$1-billion
Horrible
$500-million
$150-million
$700-million

54. What We Need
TO FIX THE INDUSTRY, WE MUST FIT THE INDUSTRY TO CURRENT REEALITIES
ocus
nnovation
rustTT
II
FF

55. CHANGE IS A RISK BUT IT IS ALSO AN OPPORTUNITY FOR GROWTH; WE MUST INNOVATE!
• Innovation will unlock a generation
• Bring a new vista to the business
• Empower and boost the industry
• Unleash growth and prosperity
Business Unusual
How do we reinvent our business?
How do we change the offering
How do we leverage on innovation
How can we capture a vibrant, young and restless generation
Where do we begin?
WE CAN HELP WITH THESE ANSWERS AND MORE
Strategic InnovationStrategic Innovation

56. he Choice is Yours…
EVERY FINISH LINE IS THE BEGINNING OF A NEW RACE
Another 100-years in
the same or a new era
into prosperity
through Innovation

57. KEY CONTACT
Contact [ Martin Ejenobor ]
Email [ martin@reveleconsulting.com ]
Telephone [ +234 (0) 802 8437 039 ]
Address [ 4 Fola Jinadu Crescent, Gbagada Estate, Lagos ]