A new report by Backbase, the global innovative banking solutions provider, highlights the need for tailored products in Ethiopia banking sector targeting women, rural users, and small and micro enterprises.
“A tailored value proposition is a customer-centric approach to delivering financial services that address the specific needs, pain points, and aspirations of distinct market segments. Unlike one-size-fits-all solutions, tailored value propositions enable financial institutions to: For women: Microloans, flexible savings goals, and wallet-based daily expense tools. For SMEs: Unified business/personal banking, credit tied to digital sales, spend tracking, and self-service onboarding. For rural users: Voice-enabled interfaces, tiered KYC, offline mobile money, and personalized saving nudges,” the report stated.
According to the report, women still manage money without mobile tools. “Small businesses operate without reliable access to credit. Rural communities rely on workarounds instead of services. These gaps hold people back, and they hold banks back, too. Bringing more people into the system benefits everyone. It’s a chance for banks to drive real impact, open new markets, and build the kind of trust that grows over time,” it said.
The report also stated that with a clearer view of everyday financial behaviors and underserved segments, banks and fintechs are better positioned to respond. “Not with generic products, but with solutions that are adaptive, relevant, and built around real needs. Tailored value propositions help banks move beyond simply offering access. They enable experiences that resonate. For underserved customers, relevance matters just as much as availability. Personalization, not just digitization, is what makes the difference,” it said.
It also stated that financial inclusion is about more than access. “It’s about giving people the tools to participate, grow, and thrive. Across Ethiopia, millions of people remain outside the reach of formal banking. Not because they aren’t active in the economy, but because financial systems were never designed with them in mind,” the new report by Backbase stated.
