Financial Services (105)
Legal fare dodging
Launched in January, Promobilletes sells public transportation tickets in Barcelona at discounted rates of 10 to 50 per cent thanks to sponsorship from advertisers.
As well as benefiting travellers, the brands sponsoring the tickets gain exposure on the Promobilletes website and can send personalized notes out with the tickets to travellers making purchases.
Promobilletes brings commuters respite from increasing ticket prices while giving advertisers an opportunity to generate considerable exposure.
Why it matters
Sponsorship in this case is a win-win solution, as commuters and advertisers alike reap a benefit. It’s a great strategy to demonstrate brand compromise with consumers. Can you think of ways how your brand can gain more visibility by providing a useful service to your consumers?
One of the biggest challenges that poor urban entrepreneurs face is lack of access to capital. Banks and financial institutions are hesitant to lend to these individuals due to credit risk and small money lenders charge almost usurious interest rates. State Bank of India has developed a unique model where small sums (sometimes as low as $100) are loaned to individuals who form ‘Self Help Groups’ that together add up to a significant corpus. The bank benefits because the default risk is spread across multiple individuals in same social circle. Additionally peer pressure helps to prevent defaults.
With banks making it more and more difficult to borrow, people are looking for new ways to finance their projects. Dutch filmmaker and artist Alex van Warmerdam decided to take matters into his own hands when he needed money for his latest movie project. Rather than turning to traditional investors, he paints canvases that he later sells to finance his movie project.