Advantages of Mobile Banking
Leading financial establishments are well-aware of the ongoing innovations and the impact of FinTech in revolutionizing the banking practices. In an effort to reach up to the increasing customer demands, banks that offer mobile banking services must adapt to the latest innovations and keep abreast with the changing market trends. However, the biggest outlier in the FinTech industry so far is the mobile banking services segment, which is set to take over the world of banking.
Here are a few advantages of mobile banking for both banks and their customers:
- Mobile banking does not restrict businesses to a specific location/time
- It empowers customers to transfer funds, invest, and exchange currency without interruptions
- Helps customers to stay relevant and compliant
- Enhances service efficiency
The client – a global mobile banking services provider with several business units spread all over the globe.
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Project Background and Solution Offered
Over the past few years leading mobile banking service providers have been subjected to increasing competitive and economic pressures to stay relevant in the industry. Due to such factors, several financial firms have ventured into the mobile banking services segment to gain a competitive edge in the market. Today, customer demographics, demands and their behaviors are constantly evolving, which signifies that banks and others who offer mobile banking services require a 360-degree view of each customer to target the right individuals, increase up-sell and cross-sell opportunities, and to adapt effectively to their changing needs.
The client- a well-known player in the financial services industry, specializing in offering high-end mobile banking services was looking at assessing different customer segments to identify the customer lifetime value. Such challenges were major factors that pushed the mobile banking services provider to collaborate with Quantzig to help them devise a customer lifetime value model to understand customer lifetime value at a more personalized/individual level across all their financial products and service offerings.
Value Delivered to the Client
Companies that offer mobile banking services require a detailed understanding of their customers at an individual level to enhance their customer retention and acquisition strategies. Customer lifetime value model acts as a valuable tool that helps financial service providers to stay competitive in the market.
By leveraging analytics-based methodologies we defined a set of external and internal transformational objectives to aid the process of customer lifetime value calculation. This helped them gauge potential near-term gains for individual customers while helping them identify potential future opportunities over a prolonged time-frame.
Our initiatives for customer lifetime value calculation basically revolved around the use of prescriptive and predictive analytics techniques to assess the following operational challenges:
- Lack of data standardization procedures
- Lack of an on-going customer feedback mechanism
- Non-uniformity and inconsistency in data collection procedures
- System and functional silos
Furthermore, as a result of our solutions and recommendations, the client witnessed a drastic change in the revenue obtained from existing customers which increased by 80%, leading to a rise in inbound sales by 120% across all their business units.