PPH sets up new pension companies that service the informal sector in developing countries. To be able to realize this PPH pools investments of impact investors, governments, insurance companies and family funds.
These services are specifically designed for pension companies targeting pension participants in the informal sector in emerging economies and are based on the principal of individual savings and collective investments. To serve these clients, focus is on affordability of our high quality services and sharing knowledge and best practices.
For new daughter companies the Holding will execute:
- Feasibility studies to investigate viability of starting a pension company for the informal sector in this specific country
- Business designs in which the outlines of the local organization, product and distribution system are developed. Local entrepreneur is selected.
- Business implementation; design & implementation of processes, implement IT and train personnel
- Business excellence; standard services to companies in the group include quality control, personnel training and social impact measurement.
The value proposition PPH offers is pension knowledge, experience in setting up pension administrations, fully integrated pension (IT) solutions and a detailed micropensions customer journey.
PPH has created a unique and profitable model that enables her pension companies to administer and service pension participants for a few dollars a year. Our pension companies become experts themselves through our ongoing guidance and support in business excellence training.
PPH takes into account the challenges of pensions for the informal economy in developing countries which are; lack of pension knowledge and experience, high inflation, high administrative costs, lack of trustworthy identification, no banking access, remote locations, corruption, fraud, low financial literacy and low pension awareness.
In practice, this means that a pension member identifies with his fingerprint and is able to pay with his mobile phone. He gets a confirmation message on his phone with every contribution he makes, and is able to check on his ‘pension app’ if he is on par with his saving goals.
In 2011 the MicroPensions activities started with a research done by Enviu investigating all countries in Africa regarding the suitability to start a MicroPensions company. This study compares countries on demographics, stability, financial market, state of microfinance, and the state of mobile payments.
In 2016 the first subsidiary, People’s Pension Trust Ghana, has been founded. After thorough validation of the business concept of MicroPensions, the startup is building up its team and technology to become fully operational in the second half of 2016. Learn more about their ambition, team and product here.