The consulting firm Accenture estimates that banks could generate up to $380 billion in annual revenues by closing the small business credit gap and including un/underbanked adults into the formal financial system.
The three main areas where we find countries where most of the adult population is unbanked is South Asia (626 million), East Asia and the Pacific (508 million), and Sub-Saharan Africa (345 million).
59% of adults in developing economies don’t have an account at a financial institution, and 800 million people live on less than $5 a day.
Introducing the Unbanked
There are 2 billion people in the world in the category of unbanked or underbanked, meaning they have limited or no access to the financial services. Access to affordable financial services is linked to overcoming poverty, reducing income disparities, and increasing economic growth. Blockbonds strives to democratize the access to financial markets for everyone in the world, by bridging the cryptosphere with traditional finance.
The Global Findex shows 3/4 of the world’s poor do not have a bank account, not only because of poverty, but also due to costs, travel distance and paper work involved. E-wallets are in most scenarios created as a pan-global solution, meaning it will work everywhere on the globe as long as the user has a smartphone and Internet connection. This puts Blockbonds in a exciting position to identify the technologies, and companies that will disrupt the estimated $380 billion in revenues banking the unbanked will generate.
Blockbonds is currently operating a closed Beta version of its product, SPENN, in the Philippines, a country where 43 million of the adult population have no choice but to live in a solely cash based environment – most of whom have never had the opportunity to utilize services found ubiquitous decades ago in the western world like a safe way to save, or transfer money to friends and family.
The digital banking and payments revolution have only just started, and Blockbonds will play a tremendous role in moving it forward. SPENN is scheduled for full launch during Q1 of 2017, both in the Philippines and Kenya. Simultaneously, Blockbonds is working together with its partners in Vietnam, Morocco, Indonesia and India to obtain the required licensing. SPENN, is created as a pan-global solution, meaning it will work everywhere on the globe as long as the user has a smartphone and Internet connection. The platform is designed with direct inputs from our target demographic to best suit their needs.
The mobile money revolution can be seen in the 590 million mobile phone owners who bank using their phones today, a number expected to top 1 billion by 2017. The trend is most notable in the developing world, where millions of people who lack bank accounts use their mobile phones as electronic wallets, accessing the financial system for the first time.
The Global Smartphone Market
Looking at the global smartphone sales forecasts, one will find indicators that the market is expected to slow considerably over the next few years. This is due to the mature markets being close to reaching their peak, meaning most sales of new devices are mostly current users upgrading their phones, instead of new users shopping for their first smartphone.
Meanwhile, emerging markets will continue to see robust shipment growth. India and Indonesia, for instance, will help fuel a large share of the shipments growth within the global smartphone market over the next few years. Analyzing the adaption numbers from developed countries, we find that they are about saturated when the smartphone penetration reaches about 60-65% – which is where they are today.
A recent report from BI Intelligence notes down the following key points when looking at the smartphone forecasts from today until 2021:
The global smartphone market is still growing at a steady pace due to more widespread adoption in emerging markets. They estimate the global market will hit about 2.1 billion units shipped in 2021 growing at 6% CAGR during 2016-2021.
Shipments growth over the past few years has been driven by the falling price of smartphones, which has made handsets more accessible in emerging markets. The average selling price of a smartphone in India nearly halved between 2010 and 2015.
With relatively low smartphone penetration, we forecast Indian smartphone shipments to grow rapidly over the next five years. Nevertheless, India has a long way to go before it surpasses China as the world’s leading market for smart handsets. India is estimated to account for roughly 10% of the global smartphone market in 2016, considerably less than China’s 30% share.
The global platform wars are over, even as smartphone adoption continues to rise across various markets worldwide. Android and iOS are estimated to account for 97.3% of global platform market share in 2015, compared to 96.3% last year.
Saturation Rate Emerging Markets:
Smartphone adaption rate of the total addressable market in the countries Blockbonds are entering. 100% on the progress bar, equals a 65% adaption rate, which is when the market is estimated to be saturated in developed countries.