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Analytics give banks an edge

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Differentiation and creating a competitive edge are critical to the success in today’s fast-paced, highly consumerised environment. However, achieving this can be a challenging task for any business, and the banking and financial services sector is no different, writes SHAILENDRA SINGH of Wipro.

Faced with the challenge of increasingly commoditised products and services, banks need to stand out from the crowd if they are to get ahead, gain market share and improve profits. Traditional methods of business are often no longer relevant, and their continued use can hinder innovation and prevent banks from delivering appropriate customer solutions and interactions. Incorporating analytics into every stage of the customer lifecycle is the solution, and financial services institutions need to gear themselves to take advantage of the benefits delivered by this powerful tool.

In the financial services sector, particularly banking, the products and services offered by competing brands are all incredibly similar. From current accounts and savings products to investments, loans and credit cards, there are few differentiating factors between the offerings of each different bank. Competing on product is therefore all but impossible. However, often sales staff are put under immense pressure to meet sales targets despite this. Ensuring they are able to effectively market products to consumers requires that they are given the information they need to do their jobs, as well as direction that leads the way to sustainable business. Analytics is the solution to providing sales staff with the information they need to take products to market with confidence.

Enhancing the sales cycle

The sales cycle within financial institutions consists of a number of steps, beginning with knowing the target audience and ascertaining whether or not they meet eligibility and profiling criteria. From there, sales calls and follow-ups are conducted, and then deals are (hopefully) closed. Sales targets are then tracked and monitored. The cycle itself is fairly simple, but can be greatly enhanced in the first stages to improve effectiveness throughout. Providing sales staff with appropriate and timely information utilising analytics can improve efficiency down the line. Besides the basic information of probable customers, their preferences and a list of products they do not yet own, customer information can be greatly augmented using analytical capability. For example, solutions like Next Best Offer use predictive analytics to identify the products or services that customers are most likely to be interested in for their next purchase.

Improved decision making

Monitoring credit risk requires an understanding of the types of customers the bank has, as well as the ability to monitor collections, predict and reduce delinquencies and reduce non-performing assets. In order to achieve this, analytics is an essential tool. Analytics is also vital across various functions of the business, from marketing and sales to Human Resources and finance. Not only does analytics assist users to draw insight from data, it can be used to improve the decision-making process, moving from gut decisions to intelligent, fact-based decisions, which ultimately enhance business success. Analytics also helps users to develop ‘what if’ scenarios that can predict future behaviour, essential for improving planning and product offerings.

Building analytics capabilities

While analytics offers numerous advantages, many financial institutions have yet to acknowledge its importance from a strategic point of view. This is an essential first step in building the required analytical capabilities to deliver improved competitive edge. It is also essential to obtain buy-in at a senior level, as the success of analytics initiatives requires it to be driven from the top down. Analytics should become a cross-departmental function, working across different verticals, lines of business and departments within the bank. In addition, the analytics team should not consist solely of statisticians and IT professionals, but also thought leaders and leaders from within the different lines of business.

It is also important to firstly identify a high-level business problem and a potential solution, which analytics could help to solve. For example, reducing customer churn may be the problem statement, and from there the next step is to arrive at a solution and identify how analytics can be used to overcome the problem. This requires that the right tools are implemented and the right service provider is partnered with. In addition, it requires that the business problem be clearly articulated, so that the solution provider can translate this into processes and a technology solution. Analytics is a step-by-step journey, not a destination, and requires continuous improvement to yield the desired benefits.

The benefits of analytics

Successfully implemented, analytics can deliver numerous benefits across the sales cycle. Customer identification and acquisition can be improved, through acquisition analytics and intelligent campaign design. Customer relationship management can be enhanced via improved portfolio management and meeting transactional needs. Customer cross selling can be enhanced using needs analysis, family demographics, credit history analysis, and the ability to select more products for cross selling. Customer retention can be improved using churn prediction and lifetime value modelling. Customer value can be enhanced, and wallet share increased, using behavioural segmentation, product affinity modelling and differentiated pricing. Analytics can provide the senior management with valuable inputs at each stage in the customer lifecycle. This translates to a better customer experience and enhanced profitability for the bank, giving the all-important competitive edge and enabling them to differentiate on service rather than attempting to differentiate on product.

In conclusion

Analytics offers numerous benefits to banks and financial services organisations. From improving marketing efforts through enhanced targeting to ensuring optimal performance across functional areas such as risk, compliance and fraud, analytics helps to improve decision-making ability and timeframes. Using analytics, banks can not only differentiate themselves today, but will be able to continue to remain competitive in the future.

* Shailendra Singh, Vice President Banking, Africa and Europe for Wipro

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As selfie cameras rise, so must selfie etiquette

Selfies were once a sign of narcissism or self-obsession. Now they are the new normal, writes ARTHUR GOLDSTUCK.

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You can blame Oxford Dictionaries for making the “selfie” respectable. After all, being named Word of the Year, as it was in 2013, does tend to soften some of the self-consciousness in this most self-conscious of actions.

Once seen as a symbol of narcissism and self-obsession, it is now the new normal, to the extent that most smartphones are sold on the basis of the front camera. Or, as that feature is now almost universally named by manufacturers, the “selfie camera”.

I was one of the hold-outs, having a near-allergy to the selfie. I still resist, but succumb more often than I would like. The reason for continued resistance is that it remains a big leap from the word becoming respectable to the action itself shedding its narcissistic image. 

For most, it’s already happened, and for that you can blame Ellen DeGeneres. She  choreographed the most famous group selfie yet at the 2014 Oscars, when she roped a bunch of actors into a group selfie, using the then-new Samsung Galaxy S5 smartphone. Her tweet of the photo became what was then the most retweeted posting ever on Twitter, and was estimated to have been worth a million dollars in marketing value to Samsung.

Ironically, it was Samsung’s up-and-coming challenger, Huawei, that came up with a new word for this type of selfie: the “groufie”. Thanks to an 8 Megapixel front camera on the new Huawei Ascend P7 camera that year which took the highest quality selfies – and groufies – possible on a smartphone at the time.

It didn’t end there, and selfies and groufies have morphed into variations like selfscapes (selfie in a landscape), skyfies (selfies from the air, using remote controlled devices) and jerkies (selfies to make an idiot out of yourself). I invented all of those on the fly, so it’s easy to imagine a new word emerging for every type of selfie.

Continue reading about selfie improvements through the years.

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Mickey’s 90th for SA

Disney Africa announced the local launch of the Mickey the True Original campaign, joining the global festivities honouring 9 decades of Mickey Mouse, his heritage, personality and status as a pop-culture icon.

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As 18 November 2018 marks 90 years since his first appearance in Steamboat Willie in November 1928, a series of world-wide celebrations will be taking place this year and South Africa is no different.

The campaign will come to life with engaging content and events that embrace Mickey’s impact on the past, present and future. The local festivities kick off in earnest this month, leading up to Mickey’s 90th anniversary on 18 November 2018 and beyond:

  • An exclusive local design project where ten highly talented South African artists will apply their own inspiration and artistic interpretation on 6-foot Mickey Mouse statues.
  • Once revealed to the public, the statues will form part of the Mickey the True Original South African Exhibition, inspired by Mickey’s status as a ‘true original’ and his global impact on popular culture. The exhibition will travel to 3 cities and delight fans and families alike as they journey with Mickey over the years. Featuring 4 sections highlighting Mickey’s innovation, his evolution, influence on fashion and also pop culture, the exhibition is in collaboration with Samsung and Edgars, and will visit:

o   Sandton City, Centre Court: 28 September – 14 October

o   Gateway Theatre of Shopping, Expo Explore Court: 19 October – 11 November

o   Canal Walk Shopping Centre. Centre Court: 16 November – 26 November

  • Samsung continues their collaboration with Disney as they honour Mickey’s 90th anniversary nationally at all Samsung and Edgars Stores. Entitled Unlocking the Imagination, fans are encouraged to visit these stores, take a selfie with a giant Mickey plush toy using their Samsung Galaxy Note9 and stand a chance to win not only a giant Mickey plush, but also an international family trip. Visit www.Samsung.com for more information
  • Mickey’s 90th Spectacular, a two-hour prime-time special, will be screened on M-Net 101 later this year. The elegant affair will feature star-studded musical performances, moving tributes and never-before-seen short films. Superstars from music, film and television will join the birthday fun for the internationally beloved character.
  • In addition, look out for special programming on Mickey’s birthday (18 November) across Disney Channel (DStv, Channel 303), Disney XD (DStv, Channel 304) and Disney Junior (DStv, Channel 309).
  • In retailers, Edgars will be stocking a complete collection of trendy fashion, accessories and footwear for the whole family, inspired entirely by Mickey Mouse.
  • Mickey will be the central theme of an in-store campaign nationwide this November and December, with brand new products, apparel, toys, as well as titles from Disney Publishing Worldwide, including books, arts & crafts and comics
  • Discovery Vitality and Disney are celebrating healthy, happy families this festive season by offering helpful and exciting tips and tricks on how to eat nutritious, yet delicious, foods, all inspired by Mickey. There’s also a trip to Disneyland Paris up for grabs. Log on to www.discovery.co.za/vitality for information.
  • And much more – check the press for updates

“Binding generations together more than any other animated character, Mickey Mouse is the “True Original” who reminds people of all ages of the benefits of laughter, optimism and hope,” says Christine Service, Senior Vice President and Country Manager of The Walt Disney Company Africa. “With his universal appeal and ability to emotionally connect with generations all over the world, no other character quite occupies a similar space in the hearts and minds of a global fan base and we are thrilled to be sharing these local festivities.”

Mickey’s birthday is celebrated in honour of the release of his first theatrical film, Steamboat Willie, on 18th November 1928, at the Colony Theatre in New York City. Since then, he has starred in more than 100 cartoons and can currently be seen on Disney Channel (DStv, Channel 303) in the Mickey Mouse cartoon series and on Disney Junior (DStv, Channel 309) in Mickey and the Roadster Racers.

South African fans are encouraged to share their Mickey Mouse moments on social media using the hashtag#Mickey90Africa.

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