How Can MNOs Unlock New Opportunities with Mobile Wallets?
In today’s world, we need to be constantly searching for not only new revenue streams but also ways to better the lives of other human beings. Uncertainty is everywhere and we have a moral obligation to improve the quality of life where we can. On top of that, we need to be constantly on the lookout for new ways to generate revenue for ourselves to keep our own heads above water.
Creating Financial Profiles
FiDaas is a concept that addresses both of these issues and offers a very interesting solution. If you have not heard of it yet, the acronym stands for Financial Identity As A Service. Born of the need in emerging markets to offer financial services such as loans, FiDaas is the process of creating financial profiles for those that may never have had them before. In a world where one needs a plethora of documents and proof to create any sort of financial profile, it is becoming increasingly difficult for those without access to first-world amenities to do so.
Through mobile phone usage, meta data and social media an alternative to outdated banking systems are here. The fact is that 6 million people worldwide have no way to demonstrate a credit record, other than their mobile phone usage. Data and airtime are regularly offered in advance with payment needed only when the customer tops up. Why can this not then be used to create financial profiles that in turn lead to more advanced financial services?
Adding these unbanked into the world's financial platform would result in $250 billion to global GDP, as well as $400bn in global credit availability. A whopping $512bn in household savings would lead to an uplift of 236 million new insurance policies and a 6 percent increase in GDP per capita for low-income countries. Of course, all of this is very good for the world’s economy.
Increase ARPU, Decrease Churn
And what does this mean for the people who are now able to gain access to these financial services? A massive increase in quality of life. Small loans delivered into mobile wallets can lead to more expansive services being offered as a reward for good lending behaviour. Over time a customer can create their personal financial profile based on their ability to repay loans.
The opportunities don’t stop at the customers, however. For telcos, FiDaas represents a whole stable of new revenue streams. Whereas one would only offer airtime and data advances to customers, with the inclusion of FiDaas telcos can now maximise on loans and the interest that comes with them. Boosting their core revenues ultimately leads to an increase in ARPU, which is a necessity for growth. Customer loyalty will also increase due to higher brand awareness and empathy, leading to a decrease in churn.
Harnessing Technology To Future Proof Telcos
Technology driven by AI and machine learning is used to crunch data to produce these profiles. Everything that Airvantage offers is based on these complex algorithms, which results in zero risk for our partners. We can drive financial inclusion without the worry of bad debt which in turn leads to higher penetration of the customer base. Data monetisation allows our partners to future proof their offerings by the inclusion of new solutions. The fact is that although there has never been more of a demand for connectivity, revenue growth has not corresponded. This is due to several factors, including overcapacity and market disruption. If you as a telco are not on the cutting edge of technology, you will simply be left in the dust.
Of course, not every telco can afford or have the ability to harness advanced technology themselves. This is where long term partners such as Airvantage come in. We provide the science behind creating financial profiles as a part of our package. The future of telcos is here, and it is so much more than simple airtime and data advances.