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A competitive analysis of social impact companies in the financial inclusion space - Look at Juntos Global. Ideally some that are B to C and not just B to B. Please avoid Micro-finance
Hello! Thanks for asking for a competitive analysis of social impact companies in the financial inclusion space.
In short, Juntos, WiseBanyan, eMoneyPool, and PayJoy are social impact companies in the financial inclusion space. I have provided a full analysis of these companies in this report, and have also included a Google spreadsheet containing the competitive analysis of these companies here.
METHODOLOGY
In providing an answer to your request I looked at reports from McKinsey & Company, carefully looked through the website of Center for Financial Inclusion (CFI) and its collaborators, as well as Accion's "Organizations and Networks focusing on Financial Inclusion." However, it was the resource from FinSMEs that proved the most valuable in finding social impact companies in the financial inclusion space. I researched several options from the FinSMEs resource, and narrowed down to those that best fit the demand of this request. Having identified Juntos competitors in this space I proceeded to researching them using authoritative articles, their company websites, media publications, market reports, databases, and more. I have provided a competitive landscape of Juntos and the other companies in this report and in a Google spreadsheet here.
COMPETITIVE LANDSCAPE OF SOCIAL IMPACT COMPANIES IN THE FINANCIAL INCLUSION SPACE
Juntos Global serves emerging markets' low-income consumers who are first time users of financial institutions like loans, banks, insurance and others. The firm partners with banks and uses them as distribution channels for its products. The company was founded in 2010. With headquarters at San Carlos, California, USA. The company's total equity funding is $7.38 Million. Its had 3 investments rounds from 1 investor (Ulu Ventures), Juntos was last funded on January 26, 2016, with $2.68 Million.
CGAP says "The engagement gap between customers and providers is among the key challenges to increasing uptake and use of financial services and ultimately achieving financial inclusion." Juntos developed a solution to fill this gap by leveraging on behavioral research and design, customer data analytics and real-time interaction with customers.
Juntos Global targets first time users of financial institutions in emerging markets who are low-income consumers. Juntos offers a text messaging system to help low-balance customers save money.
The firm expects to generate money through joint venture partnerships where they send sales leads to companies that sell products that Juntos users would be saving to buy (for example, a camera). They also expect to generate revenues by licensing their solutions to third-party such as large employers who desire to offer their clients the Juntos tool for tracking their expenses, or by licensing their solutions to credit unions.
WiseBanyan offers customized financial advisory services for free through its online platform. This company helps clients develop personalized financial plans by making recommendations and managing an array of bonds and stocks, of which the user can track, and decide to add to or withdraw from.
WiseBanyan was founded in 2013 and has headquarters in New York City, New York, USA. The company's estimated annual revenue is $9.5 million. They have an undisclosed amounts from 2 rounds of equity funding, from 7 investors. The most recent funding is venture funding on June 20, 2016 for an undisclosed amount.
- Financial Solutions Lab
- Galvanize Ventures
- InnoSpring Seed Fund
- Sorenson Legacy Foundation
- Sorenson Legacy Foundation
- VilCap Investments
- VTF Capital (fka VegasTechFund)
WiseBanyan's competitive advantage is their elimination of the drags to most people's portfolios, which are fees for making investments and the need for thousand of dollars to make investments. The company changed that drag by giving client the opportunity to invest at no fees and no minimum amounts to invest.
The company's target audiences are Millennials and generally people who can't afford to make investments worth thousands of dollars or who value fee-free financial advisors. The company's service is simply automated investment management. The company's pricing is embedded with their investment recommendations, where clients can choose from free recommendations or there paid options.
eMoneyPool describes itself as "an online platform for traditional savings groups." The company runs as an online community portal for peer-lending groups. Founded in 2012, the company is headquartered in Phoenix, Arizona, USA. They have undisclosed total equity funding from 2 investment rounds, and 2 investors (Accion Venture Lab and VilCap Investments). Their most recent funding was on August 29, 2014, as seed.
eMoneyPool is the biggest player in the money pool space, and has made the most payout of nearly $4 million. The company targets people who want to save for their needs, such as students, and other people "who may lack access to the tools to develop more conventional credit histories — to establish credit." Pricing Plane:
PayJoy give consumer financing solutions that is smartphone based. The company helps consumers to make payments in installment on electronic items they purchase. PayJoy's technology would lock a device until the month's payment is made, driving up customer payment rates. Products that they cover include smartphone, TVs, washing machines, and air conditioners. Founded in 2015 the company is headquartered at Saratoga, California, USA, with revenue of $1.5 million. The company's total equity funding is $10.5 million, in 2 investment rounds from 28 investors. The company's most recent funding is $8.5 million, which is a Series A on July 11, 2016.
The company's competitive advantage is in helping people who are not able to afford technology that connects them to the world economy do so a lot more cheaply, using software-enabled financing solutions. PayJoy targets people who needs access to smartphones and other connecting devices but can't afford it to buy them. Repayment plans may be split in 3, 6, 9, or 12 month payment schedules; the company runs its services through local merchants.
CONCLUSION
In summary, Juntos, WiseBanyan, eMoneyPool, and PayJoy are social impact companies in the financial inclusion space. I have provided a full analysis of these companies in this report, and have also included a Google spreadsheet containing the competitive analysis of these companies here.
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