Today ’ s speakers: Jude Anele, Head – Direct Banking, Diamond Bank

Dimension 3: Design Products, Services, Delivery Channels and Mechanisms That Meet Clients’ Needs The Universal Standards Implementation Series Today’s speakers: Jude Anele, Head – Direct Banking, Diamond Bank Jennifer McDonald, Manager – Savings, Women’s World Banking Yamini Annadanam, Independent Consultant March 26, 2015

Agenda • Review of Dimension 3 of the Universal Standards for SPM • Presentation by Jude Anele, Diamond Bank • Presentation by Jennifer McDonald, Women’s World Banking • Discussion with Participants • Wrap-up

There are 19 standards, organized into six dimensions. Today we will discuss dimension 3.

Dimension 3 of the Universal Standards • Title: Design Products, Services, Delivery Channels and Mechanisms That Meet Clients’ Needs • Rationale: Understanding client needs is key to ensuring that products and services are actually beneficial to clients in progressing toward their business and family goals. • Standards: This dimension has 2 standards and 8 Essential Practices.

Dimension 3: 2 Standards • 3A. The institution understands the needs and preferences of different types of clients • 3B. The institution’s products, services, delivery models and channels are designed to benefit clients, in line with the institution’s social goals

Reminder! Use the SPI4 Tool to Assess Your SPM Practices Dimensions • SPI4 is the common data collection and assessment tool for the Universal Standards • Evaluates implementation based on indicators Standards Essential Practices Indicators

SPI4 Indicators Corresponding to Essential Practice 3B.4

Meet your Speakers! Name: Jude Anele Title: Head – Direct Banking Organization: Diamond Bank, Nigeria Email: janele@diamondbank.com Name: Jennifer McDonald Title: Manager – Savings & Alternate Channels Organization: Women’s World Banking Email: jmm@womensworldbanking.org Name: Yamini Annadanam Title: Independent Consultant Email: yamini.avk@gmail.com

Please tell us a bit about Diamond Bank • Diamond Bank Plc was founded in 1991 in Nigeria • Diamond Bank Plc is a universal bank offering a full range of products & services in Retail, Commercial, Corporate and Investment banking • Diamond Bank is a publicly quoted company in Nigeria and the Professional Securities Market of the London Stock Exchange • The Retail division of the bank was formally created in 2008 MISSION:“WE WILL BE THE BEST RETAIL BANK IN NIGERIA BY EXCEEDING THE NEEDS OF OUR CUSTOMERS.”

What is BETA Savings? Why was it started? • PRODUCT DESIGN • BETA (“good” in Pidgin) is a simple savings account tailored for market women, that offers maximum convenience to customers by delivering a low cost banking service to their shops. • No forms, no signature, no ID required, no account references, no minimum balance • No monthly fee, no deposit fee, no withdrawal fee (ATM/branch) • Starter pack with ATM card for instant account opening • Rewards scheme with weekly cash prizes • RESULTS (as of December 31, 2014) • 100 branches • Over 154,000 accounts • Over ₦ 1.6 bln in deposits (USD 9m) • Average account balance ₦11,080 (USD 69) • 567 BETA Friends • Women – 35% of account holders

How does the product work? MULTI-CHANNEL ACCESS FAST ACCOUNT OPENING BETA Friend Market-based sales and service team. Promotes BETA & opens accounts. Collects deposits, handles withdrawals in the field. Account opened in five minutes, from anywhere. BETA Friend captures data and photo through mobile app. Customer receives account number and mobile PIN via SMS. Customer receives starter pack with debit card, PIN mailer and info guide. ATM Branch

How do clients benefit from the product? Convenience Affordability Rewards CORE BENEFITS KEY MESSAGES HOW DO CLIENTS BENEFIT? We come to you, you don’t need to leave your shop to save or withdraw. No min balance, no deposit too small, no monthly fees. Monthly cash prizes, save more for more chances to win. CUSTOMER FEEDBACK • Highly positive - removes barriers, combines security of a bank with convenience of informal savings • “It’s nice, as they’re collecting every day. I love it. It’s not every time [that] we’ll have time to go to the bank.” (Focus Group, Woman, Market Trader) • “I have been wanting to have an account with Diamond for a long time, but people scared me that you [need] a lot of money. I didn’t even try to find out. But I still had that ambition.” (Focus Group, Man, Market Trader)

What benefits have accrued for Diamond Bank? • Supports Diamond Bank’s growth objectives – financial inclusion as market development • Uses existing network of market branches to offer an innovative value proposition and reach more customers • Savings as an entry product to gain footprint and get to know the segment • Offer convenience at reduced cost through alternative channels • Opportunity to increase participation of women in customer base • Expansion of proposition to cross sell other products including credit

Meet your Speakers! Name: Jude Anele Title: Head – Direct Banking Organization: Diamond Bank, Nigeria Email: janele@diamondbank.com Name: Jennifer McDonald Title: Manager – Savings & Alternate Channels Organization: Women’s World Banking Email: jmm@womensworldbanking.org Name: Yamini Annadanam Title: Independent Consultant Email: yamini.avk@gmail.com

Tell us a bit about Women’s World Banking 35+ years focused on women’s access to finance 21million active clients 68% women 38institutions $8.5 billion in outstanding loan portfolio $5.5 billion in deposits EUROPE Countries: 1 Institutions: 1 MIDDLE EAST & NORTH AFRICA Countries: 5 Institutions: 5 ASIA Countries: 6 Institutions: 12 LATIN AMERICA AND THE CARRIBEAN Countries: 7 Institutions: 10 SUB-SAHARAN AFRICA Countries: 9 Institutions: 10

What is your approach to product design? Detailed, targeted and insightful assessment of women as target group through in-depth customer research Comprehensive, qualified and efficient assessment of institution Product Design Marketing Operating Model • Remove barriers • Instant account (in-field account opening with starter pack) • Simplified account – low KYC • Make it accessible • No monthly fees • “Pay-as-you-go” transactions fees • Low minimum balance requirements • Incentive savings • Provide rewards and prizes • Interest on deposits • Close the emotional gap • Simple, local language • Use visuals for key messages • Below-the-line activation • Key influencers • Market activation • Educational marketing • Practical, relevant, delivered in-field • Aimed at increasing confidence in using financial services and promoting consumer protection • Take the bank to the customer • Direct sales team to open accounts • Offer a convenient and safe place to save • Build wider distribution network • Agency banking and mobile partnerships • Integrate with bank network • Incentivize branches • Train staff • Metrics and performance monitoring • Change Management: • Business case with financial model and projections • Leadership development to engage decision-makers at different levels • Exposure to best practice in other markets

What was Women’s World Banking’s role in developing BETA? • 2014 • 2011 • 2012 • 2015 • 2013 Roll-Out & Product Extension • Pilot & Prep for Roll-Out • Pilot Design & Preparation • Preparation BETA 2.0 • Institutional Diagnostic • & Project • Planning • Customer • Research • Product Design & Business Case • Exposure Visit • Marketing Strategy & Pilot Planning • Pilot Preparation • Pilot • Evaluation & Measurement • Preparation for Roll-Out • Pilot • Evaluation & Measurement • Preparation for Roll-Out • National Roll-Out • Further Customer Research • Business Case • Product Design & Development

What were the market research findings and how did it influence the BETA Savings product design?

What were the challenges involved? How did you address them? 1) Proving the business case • BETA offers little fee revenue – business case is based on margin earned on deposits • Developing new products to meet customer demands, as well as to increase balances and diversify revenues • “BETA 2.0” will offer credit, target savings and mobile value-added services 2) Reaching women • Women are strong and active customers once they are convinced • They are risk averse, ask more questions and need more information • Institutional commitment is key to reaching them • “Focus on Women” bonus boosted women to 50% of new clients – but challenge to sustain

What are the things practitioners should keep in mind for developing appropriate products for clients? • Product based on customer understanding, building on observed savings strategies. • Generic products often do not reach women; inclusive products designed for women also appeal to men. • Improving product through product review cycles to respond to customer feedback.

Take Action: Use the Implementation Guide! • Download the guide here: http://sptf.info/spmstandards/universal-standards

Take Action: Consult the Resource Center! • Visit the resource center here: http://sptf.info/resources/resource-center

Where to find more information: • The Universal Standards of SPM Manual: http://sptf.info/spmstandards/universal-standards • The SPI4 social audit tool: http://cerise-spi4.squarespace.com • The presentation and recording from today’s session: http://www.sptf.info/onlinetrainings/universalstandards implementation • The SPTF Resource Center: http://www.sptf.info/resources/resourcecenter • The SPM Implementation Guide: http://sptf.info/spmstandards/universal-standards

Thank you for your participation! @womensworldbnkg @DiamondBankNG Please join us on 23 April 2015 for a discussion about how to improve practice in: Dimension 5, Treat Employees Responsibly

Today ’ s speakers: Jude Anele, Head – Direct Banking, Diamond Bank