It’s budget season, and for many leaders that means it’s time to prove the business case of the work they do. Quite likely, there are DEI practitioners across the credit union system who face this challenge: Prove that expanding diversity in workplaces, equity in workforce practices, or inclusion in organizational culture is good for business. The numbers show there is a compelling business case for organizations that meet the unique needs of diverse stakeholders through product innovation, and a focus on Diversity, Equity, and Inclusion paves a path for this.
Today, let’s look at this business case through the power of storytelling and a tale of how awareness of diverse consumer needs created robust growth. This is a story that spans continents and demonstrates how awareness of shifting demographics and diverse needs across those demographics can result in growth, even in a crowded and already-dominated marketplace.
This is a story of cellphones. But it is also a story of FinTechs. And economic empowerment. And cultural sensitivity. It is a story of international expansion and hyper-focused local investment.
The hero of this story is a man named George Zhu Zhanjiang. His first job out of college in 1996 was selling pagers for a Chinese phone company, but by 2006, he was managing sales for global expansion. As he started to work across new and emerging markets, he observed the different needs in different markets, all being addressed with the same solutions. He knew he could do better and his entrepreneurial spirit kicked in. He created the company Transsion in southeast Asia, but after continuing to connect the dots of opportunity (and the need to understand his local, target market), he moved operations to Africa in 2008.
George Zhu Zhanjiang’s previous work made him aware of the booming growth in mobile phones in Africa, as well as the limitations that existed. The continent had skipped landline phone adoption altogether, and in just three years had tripled mobile phone users. Even with that growth, though, there were many barriers to full access. Smart phones remained unaffordable for many, and network reliability was low. Africa had many unreliable service providers, compared to most countries having fewer, more reliable networks. By assessing consumers’ economic position and critical features for minimum viability, Transsion understood the need to roll out more than just a basic flip phone, but to keep the price low. They pulled this off by entering the market with a price point as low as $35 (compared to Nokia’s most affordable product at closer to $100).
Going beyond price, Transsion got something else right: It knew its consumers and built with them in mind (rather than what competitors were doing). Their models include multiple SIM card slots (allowing users to bounce between networks to find the most reliable signal) and camera technology that accurately captures dark skin tones. With known limitations with Apple’s iPhone camera as it relates to accurately photographing people with darker skin tones, this feature is a clear differentiator that demonstrates a level of connection and care for the end-user in Africa. Transsion broke ground to accomplish this, specifically investing in research to study millions of photos of dark skin tones and facial features that resulted in cameras that highlight darker skin tones and capture them more accurately. This willingness to invest in something other businesses considered to be “good enough,” sends a strong message of understanding of their end user.
Finally, Transsion also understood that what consumers value. A phone is not just a communication device. Knowing this, Transsion could not compete on cell phones alone. Building an ecosystem was critical, and the innovation Transsion made in this area was still designed to differentiate. What made Transsion’s ecosystem compelling was the creation of an on-continent maintenance and repair center, accessories uniquely designed to sync with all Transsion phones, and a pre-loaded FinTech (owned by Transsion) that eases consumers’ ability to integrate payments technology. This comprehensive set of solutions moved Transsion beyond a cell phone company to become a critical partner in consumers’ lives.
As Transsion celebrates its tremendous growth—top in the market with over 30% from 2022 to 2023, compared to Apple’s growth of 3.7%—there are lessons for credit unions to apply to serving their markets.
- Understand your target members’ unique economy: Transsion identified the affordable price point for their consumers, then built a quality product that could be delivered at that price point. Identifying this intersection of best possible product at an affordable price resulted in growth. Credit unions often price products based on what competition is doing or the Fed rate, but some have toyed with the idea of pricing through subscription services, inverted risk-based pricing, or flat fees (especially as they target members from younger generations). Is the way you have always priced your product the best way to reach your unique, ideal member?
- Consider the consumers’ needs (not just what others offer): As Transsion developed a better understanding of its consumers in Africa, it also understood where the competition fell short and differentiated in these areas. Transsion identified how to change elements of the phone—multiple SIM slots and better tone capturing on the camera—without increasing the price. This differentiation of the product (rather than an attempt to improve a product) shows how organizations that start with an open concept (rather than trying to improve on the competition) can meet unique consumer needs to capture the market. Credit unions often claim they are commoditized and can only differentiate on service. Has that been tested? If the concept of a third-party helping consumers with finances emerged today, would we develop the same products and services we offer today, delivered in the same way we do today? Or would a lack of historic practices allow us to build something completely different, designed to meet our members’ needs emerge?
- Seek opportunities for multiple touchpoints: Transsion could have just offered cell phones. At their price point and with the improvements designed for local needs, this would have been relevant. They took it further, though, creating a relationship with their end-user that went far beyond just delivering a cell phone. They offered entertainment accessories, ongoing service (and upgrade) options, and integrated FinTech. Consumers were not just buying a phone, they were increasing their connectivity and convenience by purchasing from Transsion. As a commoditized financial institution, your credit union might just offer savings and loan products. But as a partner in your members’ economic well-being, what else can you offer? What bundles or after-account-opening experiences can a credit union offer that will help consumers reach financial well-being? Credit unions who are deeply invested in member financial well-being must go deeper than just offering a savings account or a car loan. They must leverage those products to improve members’ lives over a long-term relationship that is easy to maintain.
Transsion’s story of identifying a specific target market, taking on market dominant competition by differentiating products to meet the unique needs of that market, then creating bundled products and services to create ease in consumers’ lives may just sound like good business. Isn’t knowing your audience and designing with them in mind what makes businesses relevant? Absolutely. It is also a good reminder that good business means understanding how the unique needs of our target market may be different than we have come to expect, that access and barriers may vary across audiences, and that innovating to offer inclusive solutions that meet unique needs of your target audience will set you apart.
Want to make sure your credit union is equipped to understand the unique needs of your target audience? Humanidei helps credit unions build inclusive workplaces designed to attract, develop, and retain the people best qualified to know and serve your members.
