Do the maths." I think just reflects the fundamental economics...

Do the maths.

" I think just reflects the fundamental economics in those countries with far lower average wealth.."
GDP per capita in Indo is $3,800.
GDP per capita in Aust is $51,000 Australia. 13x.

This is 130x smaller balance. GDP differences does not explain this.

Put it another way. The cost of a Big Mac in Djakarta is $2.20USD, approx $3.27AUD.

The Indo customers have $3.60 in their account.

You cant tell me this is just the effect of lower wages. Of course you'd expect Indo customers to save less. But their current savings in Raiz TOTAL the approx price of one Big Mac in Djakarta. En masse, they are clearly not using this as a savings product.


"I don't see anything wrong with the fundamental strategy"
It doesnt matter if you got 10% of the 330m Indo population as a customer.

What fee do you suggest charging on a $3.60 balance? 3 cents is just under 1%. Seems reasonable.

33m people (10% market share) x 3 cents = $990k. And with this $900k you have a customer base of 33m to serve. 33m! Do the numbers on 50% market share... it doesnt work.


More Big Macs...
I got side tracked and looked up The Economists "Big Mac Index". Indo: $2.20 USD. Australia $4.40 USD. On that basis, you'd expect middle class urban Indonesians to save at about half the rate in Australia - making the RAIZ result there look much worse.


People have been going to giant asian economies for hundreds of years with the dream of "if I can only get 1%...". It's called the 1% fallacy. https://www.inc.com/erik-sherman/the-1-percent-fallacy-that-trips-many-entrepreneurs.html