Financial Services
Assessment of Digital Maturity

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Synopsis

According to PWC, a consulting firm, “46% of customers skipped bank branches altogether, relying instead on smartphones, tablets, and other online applications” and customers were more satisfied with direct to consumer insurers while asset managers have begun more widely offering automated advice. The trends are clear and financial sector firms must either digitalize to survive lose market share.

Financial institutions have markedly increased their digital investments in recent years, retail banks alone have spent US20 billion in 2017 according to PWC. But it is unclear if these investments have paid off as the obstacles to Digital transformation are varied and many. Changing the customer interface alone is not enough, legacy systems must also change to match the changes in the service models that are needed and most large financial institutions often lack the agility for rapid change. Small startups are better at that but they too lack the scale and staying power needed. As a result synergistic partnerships between the two has become an emerging trend.

The other obstacle is the culture shift that is needed in order for the large financial sector workforce to adapt to the new digital paradigm. The objectives, incentives and performance measurement must also change – otherwise all that investment runs the risk of good money after bad. This could be challenge more formidable than technological change for the financial services industry. Security and regulatory compliance are also impediments to rapid change.

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Digital Transformation in the Financial Services Industry - CASE STUDIES

Migrant Remittances Case Study - Malaysia

 

Migrant Remittances Case Study - Malaysia

Migrant Remittance IOM Valyou is the fastest growing mobile wallet provider in Malaysia, with a merchant network that’s over 2,000 strong and growing. Their customers use the service to send international remittances, pay their bills, and top up their mobile phones in Malaysia and overseas, all from an award-winning app on their mobile device. However, Valyou needed a way to better serve the as yet untapped Migrant Remittances market.

The Challenge

This 1.7 million migrant population urgently needed a way to send money without the inconvenience of brick-and mortar location constrained Banks or the insecurity of fly-by-night providers, but a mobile-only solution wasn’t altogether a natural fit. The inherent challenge that Valyou faced was maneuvering complicated integrations with banks and payout partners who had complex currencies and platforms.

In spite of its strong and growing merchant network, Valyou nevertheless had a steep hill to climb. The migrant community was an insular one whose buying behavior was heavily influenced by word-of-mouth. They would need a way to build and sustain trust, one customer at a time and at the same time break into a very tech-wary market.

In the Malaysian migrant consumer economy, where competition for market-share is won and lost based on peer-to peer recommendations, Valyou could not afford failure of any kind. The technology had to be stable, because even a minute of downtime could shred their reputation. It had to be designed for inexperienced users, because its target customer was not especially tech-savvy. Most of all, it simply had to work.

The Input

Which is why Valyou simply had to partner with Telepin, whose relationship with Valyou’s parent company, Telenor, had cemented their reputation as a strategic partner. First, Valyou needed a way to escort users through their initial interactions with the technology. They created a trusted “concierge” network that’s now over 2,000 merchants strong. Valyou’s technology itself is designed as an extension of this concierge experience. With Telepin helping on the backend, Valyou gave agents the means to build a standard transaction on behalf of a user and save it inside that user’s mobile wallet.

Valyou was able to create borderless pathways of stored value quickly and smoothly thanks, in large part, to Telepin’s expertise. Financials blockchain technology, introduced earlier in the year was also integral to connecting the Valyou to Easypaisa wallets.

The Output

The result was a complete end-to-end system, including a secure and robust platform with open application programming interfaces and customer focused apps and a wallet-to-wallet transfer service that connects to the APIs of providers operating in countries where most migrants send their money. This meant providing users with meaningful experiences and tools. For example, the app instantly delivers a confirmation receipt when a user sends money, reassuring them in the moment that their transfer has gone through.

This wallet-to-wallet service began with a partnership linking Valyou to Easypaisa, a Telenor entity and the largest e-wallet in Pakistan. Next came Bangladeshis, who are the second largest migrant community in Malaysia sending money home every month.

This wallet-to-wallet service began with a partnership linking Valyou to Easypaisa, a Telenor entity and the largest e-wallet in Pakistan. Next came Bangladeshis, who are the second largest migrant community in Malaysia sending money home every month.

The Outcome

As a result, Valyou has seen its customer base grow by 66% within the first year of its launch (2016), which Valyou attributes to its customer focused design backed by Valyou’s strong network of agents and ambassadors. The mobile wallet, according to Valyou, is exceeding its customers’ expectations, giving them what they’ve long needed. Valyou’s mobile wallet technology, now entering its third year of operation, has never had a moment of downtime.

Source: Telepin

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