Market analysis and positioning

We have extensive expertise in conducting market analysis and positioning across a number of financial sectors in Africa and the Middle East. We work with our clients to understand industry dynamics and ascertain the relative position of competing businesses. Our approach focuses on understanding supply-side and demand-side issues to uncover potential gaps which our clients can then use in developing strategies to unlock value.

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Expertise Areas

Market analysis

We work with our clients to identify opportunities and threats within existing and new markets through conducting robust market analysis. Our approach to market analysis is based on using an array of methodologies, grounded in our unique understanding of macro- and micro- economic issues, which are tailored to the specific needs of our clients. 

Competitive positioning

We assist our clients in understanding their market positioning, relative to their competitors. Our approach to competitive positioning includes defining the market for services and comparing industry players across a number of metrics such as segmentation, pricing, distribution, products, business and operating models, and performance.

Segmentation

We develop pragmatic segmentation strategies to ensure that resources are allocated efficiently and our clients are best placed to create value. Our approach is based on a combination of rigorous analytical research and stakeholder engagement. We support demand-driven innovation and believe that effective segmentation is therefore essential to our clients’ commercial success. Our team’s unique strength is the ability to synthesize large volumes of data into clear, usable customer insights to inform strategy.

Customer value proposition (CVP) development and execution

We work with our clients to define and develop and implement distinct customer value propositions at corporate, business unit and segment level. Value proposition development involves a detailed analysis of the company’s unique capabilities and its relation to the characteristics of the external market, including customers, other products, competitors and pricing

Projects

Analysing the future of South Africa’s card acquiring market

Project name:
South African Acquiring Market Scan

Service:
Strategy
Market analysis and positioning
Digital

Sector:
Financial services
Payments

Area of Expertise:
Market analysis
Competitive positioning
Market entry and growth strategy

Client:
Global payment service provider

Date:
2018

Country:
South Africa


The acquiring landscape in South Africa has significantly evolved over the past few years with the introduction of new technologies and innovative offerings by new players in the market. This evolution has changed the way businesses and merchants interact with customers by making faster, more convenient transactions that improve the customer’s journey. 

Electronic payments provide an important social benefit because the cost of cash in South Africa – about R23 billion - imposes a significant cost on society. Therefore, exploring ways in which our client can capture the cash market through new acceptance technologies will help alleviate this cost of cash in South Africa.

Due to innovation in the acquiring market changing rapidly, and competition increasing, our client wanted to better understand the market to engage new partners and increase their market share. This required a strategy and go-to-market approach across the various acquiring channels.

To scope the acquiring landscape in South Africa, we determined the spending patterns of households by analysing personal-to-business (P2B) expenditure in each sector of the economy. This was compared with the profitability of merchants in each sector by analysing the net profit margins of key merchants. This allowed us to identify the sector with the best opportunities for acquiring. 

Similarly, we determined the spending patterns of businesses by analysing business-to-business (B2B) expenditure in each sector of the economy. Business spending by business size was calculated in order to determine which type of business would benefit from card acquiring methods. 

To understand what other acquirers were doing in the market, we conducted a competitor review of the acquiring banks and independent acquirers in the market.  We unpacked the offerings of the different acquirers by channel type, i.e. POS, MPOS, QR, App and eCommerce. By analysing the value proposition and customer experience of each product, we identified key pain points that customers and merchants faced with different acquiring channels. This informed our recommendations on how the client could improve future acquiring channels. 

Given the findings from the P2B expenditure analysis, Genesis identified profitable sectors with either modest or high cardable opportunities and recommend the suitable point of interaction (i.e. POS, mPOS, QR, App and eCommerce) for each sector across business types. 

Similarly, Genesis also identified B2B cardable opportunities within growing sectors and recommended the point of interaction for each sector across business types, based on average transaction value and transaction volume estimates. The competitor review revealed that acquiring banks faced stiff competition as independent service providers continued to gain market share. 

Based on the comparative analysis between acquiring banks, the client is well-placed in the market and scored well in its offerings across all the points of interactions. The analysis and recommendations were presented to the client and shaped its acquiring strategy in South Africa.

A winning strategy for deepening financial markets in Uganda

Project name:
FSD Uganda strategy refresh

Service:
Strategy
Financial inclusion
Digital

Sector:
Financial services

Area of Expertise:
Market analysis and positioning
Fintech market enablement

Client:
Financial Sector Deepening Uganda

Date:
2006 - 2018

Country:
Uganda


Financial-sector deepening aims to improve access to, and usage of, financial services that are instrumental in improving the livelihoods of vulnerable and poor communities. It is the objective of financial-market facilitators, set up as Financial Sector Deepening (FSD) Trusts, to be active in a number of African markets.

The FSD approach is unique in prioritising interventions that are systemic, i.e. self-sustaining shifts in the market system rather than supporting individual market actors that require ongoing support. FSDs work at the “macro” level to create an enabling regulatory environment, at the “meso” level to improve financial and digital market infrastructure and information, and at the “micro” level to pilot and diffuse innovative financial-service models into the market.

Market facilitation is challenging for a number of reasons. It requires a large amount of information to ensure that interventions are targeted at the binding constraints preventing financial-sector deepening at each “level” of the market. These interventions also need to be targeted because market facilitators invest heavily in relationships to influence key market actors, and this requires time and committed resources. Lastly, market facilitators need to show that these targeted interventions do result in systemic change. The ultimate beneficiaries are the same groups of vulnerable consumers whom donors (who control much of development funding) care about. Genesis has partnered with FSD Uganda (FSDU) over the last two years to assist it with these three key challenges.

Our partnership began at a point where FSDU required a re-invigorated approach to facilitating financial-sector deepening in Uganda. We developed a vision and definition for financial inclusion in Uganda, reviewed the state of barriers to access and usage of financial services, identified key technology trends likely to reshape the prospects for financial inclusion in the coming years, and identified a high level list of strategic initiatives that FSDU should engage in to facilitate systemic change. This helped FSDU with the first challenge – ensuring that interventions are targeted at the binding constraints for specific beneficiaries.

We then helped FSDU develop a refreshed strategy for the next three years. We spent time with the FSDU team to understand its planned interventions, and engaged extensively with market actors in Uganda to test which of these interventions were likely to generate systemic change. The outcome was a concise and well-evidenced strategy document that provided FSDU with a clear vision and three workstreams that focused interventions at all levels of the market on generating impact on target beneficiaries. This helped FSDU with the second challenge – targeting interventions and resources where it can make the biggest impact.

With a refreshed strategy, we then assisted FSDU with a critical part of strategy execution related to fundraising. We helped FSDU develop a funding application for the Gates Foundation on the basis of the revised strategy document. We also developed a new fundraising strategy which helped FSDU identify new potential funders aligned to FSDU’s strategic priorities and provided actionable initiatives for FSDU to increase its presence in the donor market. This assisted FSDU with the last challenge – communicating the value of its work to secure donor funding.

Navigating increasing competition for large South African retail bank

Project name:
Transactional Product Strategy

Service:
Market analysis and positioning
Digital

Sector:
Financial services
Retail banking

Area of Expertise:
Market analysis
Competitive positioning
Digital transformation

Client:
Confidential

Date:
2018

Country:
South Africa


Retail banks face the challenge of maintaining and growing core customer relationships, and consequently market share, in a competitive market that attracts agile, digital, customer-centric competitors.

Our client, a large retail bank, was exposed to these pressures.

Traditionally the customer’s main banking relationship was determined by where a customer held their transactional banking account. However, the bank found that other features – among these access to credit, loyalty programmes, service models and digital channels - were impacting customers’ choice of bank.

Transactional products themselves were no longer a customer acquisition tool. As a result, the bank required assistance to redefine its growth strategy for transactional products, focusing on how to grow transactional revenue.

To begin we determined that there were four areas we needed to consider: attracting new customers, ensuring that existing customers were offered appropriate transactional products, encouraging customers to transact more, and retaining existing customers.

We began our analysis by identifying key global themes impacting transactional banking and international examples of transactional banking innovations.

We completed an extensive analysis of the competitive retail banking landscape, looked at service standards and product offerings, and compared loyalty schemes, digital channels and self-service options. We analysed the business unit’s revenue drivers to identify revenue streams that could be improved. We also identified key dependencies between the transactional banking business unit and other areas of the bank.

This top-down approach allowed us to recommend areas in which the bank could positively differentiate between these areas and grow transactional revenue in the four identified.

At the end of the project we had helped the client identify a winning customer value proposition that fused product centricity with client centricity by recommending a dynamic product suit that was simple and appealed to customer behaviour and attitudes, thus serving them at every stage of their life journey.

Quantifying the true cost of cash in South Africa

Project name:
Consumer cost of cash in South Africa

Service:
Market analysis and positioning
Digital

Sector:
Financial services
Payments

Area of Expertise:
Market analysis

Client:
MasterCard

Date:
2016

Country:
South Africa


South Africa has a high proportion of banked adults but cash still accounts for over 50% of the total value of all consumer transactions. While digital payments innovation is taking place at an unprecedented speed with significant benefits for consumers, cash remains sticky. 

Cash usage is particularly prevalent among low-income earners who have lower access to digital channels and who live in communities where digital payments are not always accepted. International studies have shown that cash usage incurs both direct and indirect social economic costs.   

Genesis partnered with MasterCard to quantify the true cost of this reliance on cash for consumers in South Africa. While most consumers are aware of the direct costs of using cash, such as bank transaction fees, the indirect social economic costs of cash usage are often overlooked. These indirect factors include the cost of travelling to cash points, the time forgone, the interest foregone by holding cash, and the risk of loss or theft, among others.  

Genesis undertook a comprehensive quantification of these costs through rigorous assessments of secondary survey data of consumer behaviour. Quantifying the direct costs of cash such as ATMs, branch costs and cash back at point of sale was relatively straightforward using available data. However, quantifying the indirect costs was significantly more difficult and required developing new quantification methods. 

After identifying all the components of the indirect cost of cash through literature reviews, Genesis calculated the opportunity costs associated with cash usage for different income segments in South Africa. We did this by incorporating multiple data sources, sound assumptions and probability theory into an economic model. The study found that cash cost consumers in South Africa about R23-billion, or 0.52% of GDP, and that poorer communities carried a disproportionate share of these costs.

This was a landmark study because no other South African study on consumer costs of cash has conducted an analysis at this level of detail. The research concluded that any strategy to reduce the cost of cash for consumers in South Africa would have to be centred on behavioural adjustments as well as improving accessibility to alternative payment channels through product innovation, particularly in rural and semi-urban areas. 

The study was presented at the World Economic Forum on Africa in 2017 and provided a resource for MasterCard to contribute to policy discussions on the benefits of migration to digital payments.  

R23-billion cost of cash in SA is carried by low earners


Sizing Africa’s Vehicle and Asset Finance (VAF) market

Project name:
Sizing Africa’s Vehicle and Asset Finance (VAF) market

Service:
Market analysis and positioning

Sector:
Financial services
Retail banking
Corporate and Investment Banking
Business Banking

Area of Expertise:
Market analysis

Client:
A large Pan-African bank

Date:
2015

Country:
Angola
Botswana
Ghana
Kenya
Mozambique
Namibia
Nigeria
Tanzania
Uganda
Zambia


A large Pan-African bank approached Genesis to conduct a market-sizing exercise for vehicle asset finance (VAF) across its operations in 10 countries encompassing personal, business and commercial vehicles.

The research focused on a macroeconomic analysis of the 10 countries and the trends that may influence VAF in the future. It also focused on a review of both sector and industry developments to identify opportunities for growth.

A market-sizing exercise was then conducted using import data, regulator information, client data and industry association data. The report also estimated the client’s potential market share based on the trends and gaps in the asset finance market. 

The client used the research to develop its Africa go-to market strategy for VAF products.

Market opportunity analysis for card acquisition

Project name:
Market opportunity analysis for card acquisition

Service:
Market analysis and positioning

Sector:
Financial services

Area of Expertise:
Segmentation
Competitive positioning

Client:
A global point-of-sale manufacturer

Date:
2014

Country:
Angola
Ghana
Kenya
Mozambique
Nigeria
Tanzania
Uganda
Zambia


Genesis was commissioned by a global point-of-sale manufacturer to investigate market opportunities in eight sub-Saharan countries.

The first step was the selection of the focus countries through a filter of selected macroeconomic indicators: GDP, individual spending power and the level of financial deepening. This resulted in the selection of Angola, Ghana, Kenya, Mozambique, Nigeria, Tanzania, Uganda and Zambia.

The next step was to analyse specific elements of each economy to identify key trends and potential opportunities. The broad areas of investigation were the nature of the banking industry, the possible threat level of the mobile payments space, the strength of the formal retail sector and the possible ticketing and value added service opportunities. All of these areas related to the different product types offered by the company.

The project recommended a targeted deployment by first focusing on core markets and secondly, targeting specific opportunities within those markets with existing offerings. The opportunity in the card space (both point of sale and mobile point of sale) was dwarfed by the possible value-added services and ticketing market opportunity.

Sizing the SA digital banking market

Project name:
Sizing the digital banking market

Service:
Financial institution expertise
Market analysis and positioning
Digital

Sector:
Financial services
Retail banking

Area of Expertise:
Market entry and growth strategy
Competitive positioning
Digital transformation
Fintech market enablement

Client:
A Pan-African bank

Date:
2015

Country:
South Africa


Genesis was commissioned to complete a comprehensive market sizing of the digital banking platforms in South Africa. This involved a market view and a detailed competitor sizing for online channels.

This project put in context the demand and supply sides of the market in order to gear a large Pan-African bank for innovative digital practices in the future. Genesis, in conjunction with Moxon, developed up-take and adoption predictive models for the bank’s team.

With this the bank identified customer sets within its client base to actively target for adoption campaigns. We also developed a comprehensive insights report on the digital landscape within South Africa.

Specifically, this report touched on the demographics of the country, cellphone, PC and tablet usage statistics, as well as market share analysis of device and digital channel usage. These insights were used by the bank in the development of the bank’s digital strategy.

Assessing SA's ATM market for consolidation

Project name:
Assessing South Africa’s ATM market and opportunity for optimisation

Service:
Market analysis and positioning

Sector:
Financial services

Client:
A large cash-in-transit company

Date:
2014

Country:
South Africa


Genesis was commissioned by a large cash-in-transit company to conduct an end-to-end analysis of the ATM industry and the factors shaping it, with the view to quantify the consolidation opportunity and industry cost savings. 

The top-down analysis estimated the true value of cash in the South African market, using two approaches (Reserve Bank data and bank data). From this a five-year view on cash was formed. 

Recent developments in ATM and cards – such as the effect of SASSA, payment innovations and regulatory changes – were also incorporated into the analysis. The top-down approach yielded a significant opportunity for consolidation.

The bottom-up analysis involved a more detailed quantification of the consolidation opportunity. ATM supply data was extracted from a number of sources and then reconciled to form the most complete data set possible. 

The demand for ATMs was determined at a municipal level through the use of regional data. The supply and demand findings were overlaid to define over-capacity at the municipal level. The significant opportunity for consolidation was verified, however, as the expected magnitude of this opportunity was lower in the bottom-up.

Based on these findings the client presented a detailed opportunity for consolidation to its board.

Review of the Ugandan Microfinance Sector

Project name:
Review of the Ugandan Microfinance Sector’s Effectiveness (2004 to 2014)

Service:
Financial inclusion
Market analysis and positioning

Sector:
Financial services
Public and Social

Client:
The Department for International Development (DFID)

Date:
2014

Country:
Uganda


Genesis was commissioned by DFID and the Ugandan financial services inclusion programme to conduct a review of the progress made within the microfinance industry in Uganda, consider the emerging trends in the sector as well as to provide a look into the future and recommend new strategies for increasing the level of financial inclusion.

The review served as an update of a similar study that was conducted in 2004. The review highlighted the changes in the market, in particular the impact of government programmes and mobile money, and highlighted the range of donor support currently available to the sector.

Meet the Team

Areas of Service Expertise

  • Market analysis
  • Competitive positioning
  • Segmentation
  • Customer value proposition (CVP) development and execution

Related Sectors

  • Retail banking
  • Corporate and investment banking
  • Business banking
  • Insurance and asset management
  • Capital markets
  • Payments

Projects

Project

Analysing the future of South Africa’s card acquiring market

Due to innovation and competition increasing, a global payment service provider wanted to better understand the market to engage new partners and increase their market share. This required a strategy and go-to-market approach across the various acquiring channels.

View Project
Project

A winning strategy for deepening financial markets in Uganda

Genesis Analytics have been working with Financial Sector Deepening (FSD) Trusts on a number of projects. FDS commissioned Genesis first to re-invigorate their approach to facilitating financial-sector deepening in Uganda. We then helped FSDU develop a refreshed strategy for the next three years and then assisted them with a critical part of strategy execution related to fundraising.

View Project

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Leading the team

Richard Ketley

Director and Managing Partner (Financial Services Strategy)

Richard Ketley
Director and Managing Partner (Financial Services Strategy)
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Bavani Naidoo

Partner (Financial Services Strategy)

Bavani Naidoo
Partner (Financial Services Strategy)
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