Challenge
A global financial organization sought to evaluate whether a simplified credit card proposition could meaningfully and responsibly expand access to formal credit for underbanked consumers. While demand for borrowing is high across emerging and developed markets alike, traditional credit card models struggle to serve lower-income and thin-file segments due to structural cost pressures, risk constraints, regulatory constraints, and misalignment with consumer needs. The institution aimed to determine whether a redesigned credit construct could bridge the gap between consumer demand and issuer constraints while aligning with broader financial inclusion and growth objectives.
Approach
KoreFusion conducted a multi-market assessment across a set of global markets, combining extensive issuer and ecosystem interviews with consumer demand analysis and secondary research. The work examined card economics, regulatory and data constraints, issuer appetite, and consumer borrowing behaviors to identify where existing credit models break down for this segment. The engagement focused on identifying practical product design, partnership, and structural levers that could improve feasibility, with insights synthesized at the archetype-level to inform scalable proposition development.
Outcome
The study confirmed strong latent consumer demand for credit alongside cautious issuer appetite driven by unit economics and risk visibility challenges. Findings highlighted the economic and risk considerations shaping behavior for this segment and outlined design principles for a simplified credit proposition tailored to the behavioral and financial needs of underbanked consumers. The work provided a robust, evidence-based foundation to guide next-phase product design and go-to-market strategy focused on responsible inclusion.