Evolve2020UNLT
In the age of rapid technological advancement, the financial and telecommunications sectors are experiencing unparalleled transformations. Mobile money systems and the strategic pivot of Mobile Network Operators (MNOs) represent two sides of the same coin, highlighting a converging path towards digitalization that is reshaping the global financial and communication landscapes.
With the demand for traditional mobile services, like voice calls and text messages, ever on the decline, customer churn and dwindling revenues are becoming increasing concerns for mobile network operators (MNOs). As an MNO, evolving and adapting needs to be part of your DNA to remain competitive and relevant to customers.
The telecom industry is experiencing technological growth and innovation never seen before, propelled forward by the advent of 5G broadband as well as the internet of things (IoT) capabilities. Artificial intelligence (AI) is currently experiencing a boom, with many mobile network operating (MNO) companies adopting AI to assist in their complex management operations. With its multipurpose and multifunction capabilities, AI has the potential to be a key driver for growth in numerous areas, ranging from infrastructure maintenance to sales and retail operations.
Mobile Network Operators (MNOs) currently find themselves in a bind. Their primary service – the service which has, up to this point, always defined their identity – of instant communication no longer has the value it once did. Landline, mobile and broadband services have all been eclipsed by instant messaging services and social platforms powered by wireless connectivity. And MNOs are feeling the sting in their pockets. By no longer being the gatekeepers of analogue and digital communication, operators are struggling to redefine themselves in a post-call landscape.
Success is better when it’s shared – whether it’s among friends, family, loved ones or communities. Success should be available to all, irrespective of where they come from or what their dreams are. With a large majority of Basotho being unbanked, access to loans and other financial services are limited and often hard to obtain, making it all the more difficult to access the capital they need to turn their dreams into tangible success stories. Recognising this gap in service delivery, Vodacom (VCL) financial services and Airvantage Lesotho decided to work together to find a solution that combines the benefits and capabilities of mobile money with the need for instant access to financial services. By leveraging the data gathered from individual mobile money users, both parties were able to build a custom solution capable of bringing greater financial inclusivity to the people of Lesotho.
For mobile network operators, churn is an ongoing concern – one thatis, unfortunately, worsening instead of improving. MNOs face incoming challenges from every direction, market saturation,stiff competition both inside and outside the mobile communications industryand growing customer disinterest in the services they’ve always offered. The mobile network industry is getting more saturated by the day. Newmobile network service providers are entering the market daily, offering morefor less and compelling customers to window shop, impacting their loyalty.
Across the continent of Africa, mobile money has experienced a massive rise in popularity. Large populations of people across developing markets who have limited access to formal banking systems or the documentation required to open a bank account are drawn to the easy availability of mobile banking and the minimal processes required to obtain mobile money.
Across both developed and emerging markets, technology can act as the ultimate equaliser, bridging the divide and providing more equal opportunities to people around the world. In particular, mobile devices and the capabilities they offer can help people to access services they might otherwise not be able to procure and help businesses and customers to stay connected 24/7.
For mobile network operators, feature phones that rely on the legacy of 2G are no longer worth servicing. With the mass usage of 4G and introduction of 5G, and their abilities to power mobile broadband services, there’s no longer the same reason or incentive to keep providing coverage for 2G featurephones when that spectrum could be re-farmed into more profitable 3G, 4G and5G. This effectively means switching off service to older feature phones that still rely on 2G. Although many customers hold onto legacy devices out of habit or to spend less on mobile costs, the returns of continuing to service them are no longer worth the effort for MNOs. It’s time for MNOs to stop providing coverage feature phones and migrate customers over to more robust and serviceable smartphones. Keep reading to find out why it’s in MNOs best interest to stop servicing feature phones.
According to the World Bank, around 2 billion individuals around the world remain unbanked and have no bank account. These people struggle to access basic banking services like loans and credit and are drastically underserved by these financial institutions. MNOs, with their vast access to customer data, are in a unique position to step in and help bridge the gap between banks and the underbanked. Airtime-based credit scoring is the way to do this. Through airtime-based credit scoring, MNOs can safely and incrementally offer credit to existing customers without taking on exorbitant risk and ultimately increase their bottom line. Dubbed the “mobile identity market”, credit profiling based on advanced airtime usage represents a lucrative opportunity for pursuing new service avenues and growing their customer base. Read on to learn how airtime-based credit scoring can help MNOs and the underbanked.
