Financing the Chinese Migrant Workers

Designing financial products for migrant workers

THE CHALLENGE
Vulnerable financial situation of the migrant workers

THE METHODOLOGY
Migrant workers Focus Group Discussion

THE OUTCOME
Financing products development directions

• Migrant workers are secrets to the booming Chinese economy. Chinese migrant workers exceed 277 million in 2015 according to the state’s statistic bureau (Stats.gov.cn, 2016). Encouraged by the flourishing economy of the cities, they abandon the generations work of farming to seek better job opportunities in town. However, their life is not easy. ​Tumbled by their humble education, small urban social networking, and village HUKOU, regular jobs they land are labor-intensive ones like nannies or product line workers which generate a basic payroll. Their life is hand to mouth because they sent most of their money to their families staying in the village, One woman told the project team that she sometimes spends only 1RMB (less than 2 cents) a day for food. What makes it worse, they pay premium for public services in the town like medical care and school because they do not have city HUKOU. What if emergencies arise and they need to borrow money? Lending from the bank is hard. Most even do not own a banking account. It is impossible to borrow a significant amount from family and friends because they are tight with money as well. One migrant worker joked that he could not afford to have anything bad happen.

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• Our client, a world-famous banking, and investment institute, takes the challenge to improve the financial flexibility of the migrant workers. Our project team investigated migrant workers' financing needs. This report includes the specific financial situations and needs of immigrant workers and also serves as the building block for the ideation phase of the new product.