This Working Paper tells the stories of three digital banks: TymeBank in South Africa, Kotak 811 in India, and UnionBank in the Philippines. It takes a detailed look into how the selected businesses operate in their markets, what they do differently from traditional players, and how they are contributing to financial inclusion. In each case, financial services providers, investors, technology providers, and funders will find lessons that may be applied to other digital banks.
Impact / Outcome
The most encouraging shared feature is the recognition that excluded and underserved customers represent a large economic opportunity that is increasingly within reach as technological advancements have reduced cost structures. At the same time, digital banks as fully licensed financial intermediaries do not experience the same limits to their business model as nonbank e-money issuers, including mobile money providers, which typically depend on revenue from transaction fees.
Funding sources
Private
Key Metrics
Customer acquisition costs; Use of alternative distribution channels; Digital financial services reach
Operating model
Fully privateYear published
26 October 2020 
CGAP NGOs and other non-profit