DECISION MAKING Cost-benefit analysis

1. What should the team investigate to determine whether the

Diconsa network could and should be leveraged to provide a
range of basic financial services to Mexico’s rural population?
 
Benefits for the Mexican rural population
 Time, effort, and expense savings (travel time)
 Benefits of having a broader range of financial services
(better security of money)
Benefits for the gov.
 increased compliance/collection benefits (lower
administration cost)
Benefits for Diconsa network
 better financial management among the rural population
(more busienss for Diconsa stores)
Benefits for state bank
 Reduce pressure and increase efficiency for the bank
branches that re currently distributing benefit payments
 
Risks
Diconsa network
 Capacity or ability to deal with financial payments and
products
State-bank
 Capacity to operate financial services across a much greater
network of outlets
Mexican rural population
 Greater risk of fraud of theft due to less centralized control of
benefits payments
 
2. If all families could receive state benefits at their local
Diconsa stores, how much in total per year would be saved
across all Mexican rural families receiving state benefits?
 Families in rural Mexico
 Families receiving benefits
 Each family spend per year
 All families spend per year
 Total savings
 
 3. What are your observations about this information, and how
would you explain these trends?

 
 4. How the bank could sell these services effectively to this
population given the challenges?
Sug. for overcome the lack of education and familiarity wirh
banking products
 Pilot some products in certain regions
 Arrange in-store talks and demonstrations, dispel common
causes of distrust
 Partner with brands or org. that are already well known and
trusted by the rural poor
 Advertise using individuals who have benefitied from similar
products for example, people who have made successful
insurance claims, or who managed to save money for a
specific need
 Motivate Diconsa employees to encourage take-up of the
products
 Offer promotions to ecourage initial take-up, for example,
pay 50 pesos when the first savings deposit is made
Sug. for overcoming crime and fraud
 Increase security in Diconsa stores
 Impose daily or weekly limites on transactions
 Introduce technology such as chip cards to reduce fradulent
acticity and to discourage crime through less use of cash