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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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Where is the pickup truck emoji?

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With billions of emoji sent daily and nearly every mode of transportation including cars, scooters, boats, spaceships and ski lifts among the 3,000 approved icons available to emoji users, truck fans noticed a glaring omission: There is no pickup truck. Ford decided it was time to do something about this and is celebrating World Emoji Day with the debut of the pickup truck emoji.

“When customers started demanding a truck emoji, our drive for continuous innovation meant we knew we had to help make it happen,” said Todd Eckert, Ford truck group marketing manager. “Given F-Series’ status as America’s best-selling truck for 42 consecutive years, there’s no one better than Ford to help bring an all-new pickup truck emoji to hard-working texters around the globe.”

The Ford Ranger is one of the top three best-selling vehicles in South Africa having sold 12 784 units in the country in the first half of 2019.

In 2018, Ford submitted a proposal to the Unicode Consortium – the organization that reviews and approves proposals for new emoji – to add a truck to emoji keyboards everywhere. Now, the pickup truck emoji has been short-listed as a candidate for inclusion in a future version of Unicode.

The concept emoji’s capable styling has been tuned to meet current trends. “Our team spent a lot of time digging through message boards, texting influencers and watching social media feeds to really understand our customers’ needs,” said Eric Grenier, Ford social media manager. “People want a truck emoji that’s fresh, stylish, carries their ideas, and ‘tows’ the line on what a truck means. The end result is a modern icon that should give all truck fans a smiley face emoji.”

If the pickup truck emoji is approved in early 2020, the design will be customized for all mobile platforms to meet the needs of customers – from skilled tradespeople to active families and emoji lovers alike.

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How Africa tech meets Africa demands

By MVELASE PEPPETTA, freelance writer

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From Facebook to Google, the world’s largest tech companies are increasingly looking to Africa and other developing economies as key markets where to ensure the continued growth of their businesses. Policy makers in African governments are also making sure their economies are preparing for a tech-focused future.

For instance, in South Africa the government has indicated its goal of ensuring its economy is geared to answering the needs of the “fourth industrial revolution” and Malawi’s Reserve Bank announced a policy to have all local businesses offer at least one method of digital payment. But while much can still be untapped from the African tech ecosystem it is a very active scene. According to the 2018 venture investment report by WeeTracker, African startups raised a record US$725.6 million across 458 deals in 2018.

Imagining what is on the way is on the way is certainly exciting, it is also just as important that we keep an eye out for what already is out there in terms of African tech developed to provide solutions for uniquely African demands.

Abalobi Marketplace

A South African service, Abalobi Marketplace is a particularly unique service in that it is designed to ensure that small-scale fishers are supported within the fishing industry. The app which currently services 140 restaurants allows chefs to source fish directly from small-scale fisher who load what they have caught onto the app. Chefs can also place requests on the app for a particular catch. Launched in 2017 by Abalobi, a non-profit working to empower small-scale fishers, the app services restaurants primarily in the Cape Town region but has already started working with restaurants in Johannesburg. For chefs, it provides them with the ability to source far fresher fish than can traditionally be provided. But for the 200 odd fishing families who use the app, tackling decades of entrenched inequality in the South African fishing supply-chain, the app allows them to receive fair price for their catch. 

SweepSouth

Similar to Abalobi, while its most commonly referred to as a “Uber for domestic cleaners” SweepSouth is another service that also touts itself as looking to tackle decades of inequality in South Africa. At its most basic, SweepSouth is a service that allows people looking for domestic workers, whether for home or office, to book them using a mobile app. However, according to SweepSouth’s founder Aisha Pandor the service is also committed to the women finding work opportunities through the app. In that regard, SweepSouth not only provides them with benefits like accidental death and disability cover at no cost to the domestic worker but at a far more basic level, also pays domestic workers who find work through the app at a far higher rate than South Africa’s legislated minimum wage. While currently operating in South Africa only, SweepSouth has mentioned plans to scale their services into the rest of the continent. 

Mama Money

Using the internet and cell phone technology to answer the needs of immigrants working in South Africa, Mama Money looks to undercut traditional financial services by allowing its users to send money across borders at far lower rates. Described as Africa’s first completely cashless money transfer system, when answering why they launched the business, Mama Money’s founders Raphael Grojnowski and Mathieu Coquillon have said, “We wanted to get into business to help others and we knew that there were millions of migrant workers in South Africa who send money home to their families, but battle with the transfer fees. We thought this presented a perfect opportunity to disrupt and help people get more money home.”

Quicket

Established in 2011, Quicket has transformed how event organisers and ticket buyers engage with a range of events – from concerts and sports to yoga and fashion shows. Unlike traditional ticketing companies, Quicket allows organisers to create an event and start selling tickets without needing a website and imposing onerous contracts, or big fees. The company’s offerings have resulted in seven years’ of exponential growth with James Tagg, Quicket co-founder explaining that today the platform has widespread adoption from some of the continent’s largest festivals through to micro gatherings, and everything in between, including fundraising drives and school related events and funds collections.. What sets Quicket apart from its competitors is that it gives event organisers complete control, whether they are planning to host 10 or 10 000 people.  

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