Tag Archives: strategy

Implementing ADC projects: What does it take?

Photo credit: Owens BPO

This post is written by Shital Shah, SBI Associate Consultant.

Making sure a mobile money venture is able to weather Death Valley and come out successfully while reaching clients and finding financial sustainability requires strategy, an understanding of the local context, and technical know-how.

SBI’s Alternative Delivery Channels (ADC) team works across regions and focuses on implementing innovative and sustainable projects with financial institutions and technology companies.  Across the ADC projects, SBI’s team of experts focus on any, or all, of the following components, which are really the main ingredients to any mobile banking venture:

  • Strategic guidance, including financial modeling and business planning – by working with the executive management, experts are able to provide business insights and strategic guidance on issues such as regulations and partnerships
  • Agent network management – experts that were involved in building up agent networks elsewhere in the world help figure out the nuts and bolts of channel management, from recruitment, selection, training, to management
  • Cash/float management – managing liquidity with the agents is a critical factor in making the business work, and needs the right policies and procedures
  • Technology – although technology is just one tool within the overall business, it does need to be well integrated and well functioning; the proper guidance can help secure core banking systems, integrate platforms, and meet business requirements successfully
  • Customer uptake – insights through market research, appropriate product development, pricing structures, and effective marketing are all some factors in creating rapid customer uptake Continue reading →

Chickens, Eggs and Death Valley: The Mobile Money Life Cycle

This post is written by Ryan Falvey, SBI Manager, ADC Strategy & Execution Group.

Recently a client asked SBI’s Strategy and Execution Group for assistance in helping them understand the strategic implications of developing a mobile money solution. To help describe the costs, risks, rewards and opportunities associated with mobile money, we developed the graphic below.  In particular we wanted to highlight, for those who are not familiar with branchless and mobile solutions, why so few mobile money programs have been successful and the importance of developing and maintaining strategic focus.

As one can see below, the curved line represents the financial cost and returns associated with a mobile money program (negative at first, positive eventually) with the straight line serving as a hypothetical breakeven point. Labels which are red represents costs, green represents revenue drivers, black text represents break-even activities and the blue captures some of the terminology – I believe originated by our friends at the Bill and Melinda Gates Foundation – to describe the pitfalls that many programs have encountered. A more detailed explanation can be found below.

Continue reading →

Data analytics to build better businesses

This post is written by Shital Shah, SBI Associate Consultant.

Photo credit: KeralaEvents

In our data driven world, how important is an integrated analytical framework for mobile financial services?  During a recent meeting with a pair of business school professors, we sat down to dissect an approach to framing business analytics in SBI’s mobile banking initiatives.  Business analytics, or data collection and analysis in general, hold several useful purposes:

-        A tool for business decision making

-        Assessing wider impact of service

-        Understanding the added ‘value’ for customers and agents

The business analysis will help companies navigate potential obstacles better – with real time data outputs and consolidated reports tracking tends and patterns, management will be understand what is happening with key areas of their operations. However, the analysis can also have a broader purpose. Many of these mobile money ventures are the first of their kind in these markets, which presents a unique opportunity to understand the role of financial institutions in building large scale transaction platforms. Continue reading →