Absa Bank is one of the biggest and oldest banks in Ghana and has a substantial customer base. They offer a range of banking services in both retail and corporate banking.
Absa is considered to be at the forefront of product innovation and technology in the African financial sector.
Problem
Absa was in search of a way to retain existing blue and white collar workers bank accounts as well as attract new customers to open accounts. They also aimed to increase market share in a fluid and competitive industry.
Solution
Introduction of an income replacement tool on an embedded basis, or Retrenchment Insurance, to distinguish account holders and provide a superior product offering to the client.
Implementation
MIC introduced embedded retrenchment insurance for all account holders. This helped to increase enrollment of salary accounts to blue and white collar workers in Ghana.
Results
Since the introduction of this solution, salary accounts increased from 12,000 to 20,000 accounts in the first 12 months, representing a 66% growth.
It further increased by over 300% to 43,000 over a subsequent six year period. 11,000 accounts have since been reclassified as micro/mass market customers.
The portfolio still boasts of over 33,000 accounts and continues to grow steadily. This solution has positioned Absa as a market leader and resulted in increased revenue for that vertical.
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