Like the elephant seal, most fintech companies are focused on growing as large as possible. That means they usually choose a free business model to facilitate growth. Kristen Berman and Wendy De La Rosa of the Common Cents Lab say there's a better way: Abandon the free model and focus on removing the true psychological barriers to financial management.
Productivity isn't the only variable in the effort to increase the world's food supply; one-third of all food gets lost or wasted. Science for Society Techno Services claims its solar conduction dryer increases the shelf life of perishable produce by six to 12 months, and the firm even buys processed food from farmers and takes their dehydrated produce to market.
There are advantages to being a digital financial services provider, but also risks surrounding questions such as: Which business model should I choose? Should I develop my own digital platform or leverage someone else’s? Do I want to deploy my own network of agents? Will I partner with an MNO? That's why UNCDF’s MicroLead program, PHB Development and The MasterCard Foundation are working together to provide toolkits for FSPs.
After five years of running a nonprofit organization, I was completely burnt out on fundraising. Now, after over two years of running HandUp, a Public Benefit Corporation (PBC), I can compare the two models. If you have the right model for scale, with a clear market, and have tested your idea, I highly recommend taking the PBC route.