Advisory Services in Payments

Transcription

1 Advisory Services in Payments Copyright CleverAdvice No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means electronic, mechanical, photocopying, recording, or otherwise without written permission of a CleverAdvice authorized officer

2 About us CleverAdvice is an independent advisory firm specializing in the payment industry, in particular payment cards, contactless & mobile payments and transit-related solutions We provide strategic direction and investment counsel based on analysis of evolving markets, competitive dynamics, changing technologies and regulatory shifts. We do not sell third party services, hardware, software or products and as such provide truly independent advice CleverAdvice brings together a team of consultants and experts in strategy, market analysis and research, technology and regulatory issues with ability to provide a comprehensive support through innovative, effective and actionable recommendations The expertise of our professionals combined with dedication and attention to details allow us to offer the highest quality results CleverAdvice is an active member of the European Payments Consulting Association a pan European association of advisory services firms registered as an official European Economic Interest Grouping (EEIG) Our ability to leverage the EPCA network of companies enables us to conduct European-wide engagements offering in-depth local market knowledge along with international view and approach CleverAdvice professionals are active members of ESOMAR World Association for market, social and opinion research, the leading organization for encouraging, advancing and elevating market research worldwide The ESOMAR affiliation guarantees the quality of our services and allow an on-going dialogue with its 4,900 members in over 130 countries through the promotion of a comprehensive programme of industry specific conferences, publications and best practice guidelines

3 Areas of expertise We seek to become a trusted partner, advisor and catalyst by promoting innovative thinking and challenging goals to ensure that our clients always stay one step ahead of the competition Strategy Market analysis & Research Marketing & Communication Project Management Business Planning Innovation Due Diligence and M&A Regulatory issues

4 CleverAdvice offers advisory support in a range of topics We may engage in stand-alone projects or multiple engagements to address specific needs Strategy Proposition Overview Identify & Size Opportunities Performance Management Market overview Proposition development Sales & Activation strategy Card porfolio migration Benchmarking & Gap analysis Co-branding strategy Communication strategy Portfolio Performance Customer Profiling Training Sales toolkit Analysis & Management of credit risk Project management & Business requirements Cardholders incentive strategy Due Diligence Sales force incentive strategy Instant Payments e-commerce PSD2 4 / 24

5 Market Overview Conducted in-depth comprehensive analysis on market trends, customer behavior, product innovation and niche issues based on up-to-date market information Developed market insights and strategic direction Retrieve geography, social-economic and products specific information and data In-depth analysis based on up-to-date market information on specific aspects: Market trends Customer behavior Product innovation Transactional activities Identify market opportunities based on up-to-date information and trends Up-to-date market analysis on: Competitive offerings Customer behavior of consumer & business segments Geo-referenced, social-economic and products data Insights and market trends useful to develop segmentspecific business offering of products and services Relevant market trends Insights on strategic directions of the competition 5 / 24

6 Benchmarking & Gap analysis Developed detailed analysis on competitor offerings with respect to features, user experience, pricing and other elements of the value proposition Performed gap analysis and identified market opportunities and quantified economic benefits Gather market data on competitors proposition offering Analysis of competitors landscape: Product features Insurance coverage & specific services Business-relevant features Specific elements of the value proposition Structure and analyze information, compare product offerings and highlight potential opportunities Segment-specific market opportunities unfilled/partly filled by the competition Identification of market gaps with respect to features, fees and other characteristics of product and service offerings Analysis of product positioning and relevant insights Identification of new business opportunity base on market gaps 6 / 24

7 Customer profiling Developed a segmentation strategy by clustering clients according to a customer behavior and customer value parameters, enabling tailored proposition and service offering Clustered consumer and commercial clientele Gather issuer's business customer data Identify segmentation parameters in line with issuer needs Profile business customers based on: Core activities Company size and legal entity Geographical reach Attitudes and behavior Other market specific Identify segment-specific profitability and focus on most profitable once Ability to focus on segments with high acquisition and utilization propensity Consolidated customer relationships by developing and offering the products, services and assistance they require In-depth understanding of your customers allowing to anticipate their needs Improved customer experience 7 / 24

8 Proposition development Developed a product/service proposition through in-depth analysis of target customer needs Defined individual products, coverages, services and created specific packages in line with customer needs identified Analyze in-depth target customers needs and interest on: Payment products Insurance coverage & assistance services Additional services Identify payment products, insurance coverage and services in line with customer needs and interests Define and structure new commercial proposition and packages addressed to specific segments Individual structure products and compelling packages that fulfill needs of specific segments Multi-level value proposition to provide differentiated offering based on level of sophistication of target business customers Increased usage through enriched proposition Improved innovative/market leader perception Opportunity to strengthen and further develop relationships with business clients 8 / 24

9 Co-Branding strategy Conducted in-depth analysis on co-branding strategy and product innovation based on purchasing behavior information Developed co-branded products in partnership with leading brands Retrieve issuer market data and identify target customers needs Research and analyze co-branding strategies/cases of best practices Cluster customers based on purchasing behavior, sophistication and demographics Recommended co-branding partners and identified mutual opportunities with issuer Understanding relevant co-branding programs worldwide addressed to both consumer and business clientele Identification of best partners to establish a long term cobranding relationship Individual co-branding agreements Increased issuer visibility Increased usage through enriched proposition Improved new costumers acquisitions 9 / 24

10 Training Structured program aimed at training bank personnel and trainers on product offering aimed at boosting sales Define scope of training and personnel/resources to be trained (train sales force / trainers) Define contents of training sessions Define training channels (direct training, videoconference training, online training etc..) Develop training material Define training plan Deliver training through expert practicians Improved acquisition and usage Knowledgeable sales force, branch personnel, contact unit resources on: Features of payment products and value added services Benefits to target customers External communication guidelines Comparison with traditional payment methods and competitor products Guidelines to effectively manage and overcome client objections on acquisition and usage 10 / 24

11 Project management & Business requirements Set-up planning material to support business units involved in the launch of new products and project timing guidelines Created business requirements and liaised with IT teams Develop business requirements Define external communication messages and material specific for each customer segments Define launch-related marketing/communication events Define internal communication and training Develop launch-related plan Identify Key Performance Indicators (KPIs) and MIS activities Develop relevant material/reports for internal usage Compelling business requirements Set up of product launch processes including guidelines Product positioning IT requirements Marketing material External communication and events Training plan Internal communication plan Project plan of launch-related activities Project management support 11 / 24

12 Due Diligence Performed independent valuation of enterprise Provided investment recommendation Analyze market opportunities in the target industry Investigating issues related to the company under scrutiny: Ownership and Control Financials, Assets, Operations and Organization Intellectual property and Competitive advantage Contracts, Commitments and Tax Matters Compliance, Litigation and Environmental issues Interviews with management, customers and competitors Understanding of company operation and insights Independent valuation of enterprise competitive advantages, long-term sustainability and cash-flow generation ability Challenge of management plan and revision of business plan Valuation of enterprise under scrutiny Investment recommendation 12 / 24

13 Sales & activation strategy Structured acquisition and activation processes aimed at improving identification of client needs and highlighting benefits of products/services Defined actions to help sales personnel in identifying and exploit up/cross-selling opportunities Size opportunities, identify target clients and define acquisition plan Structure acquisition and activation processes Define up/cross-selling opportunities and actions to support sales personnel Define processes to be monitored: Penetration & activation improvement Effectiveness of marketing & communication material Effectiveness of acquisition channels Compelling sales strategy to maximize new customer acquisition & improve utilization Understanding of benefits & potentials of acquisition and activation channels Facilitating assignment of roles & responsibilities of resources involved (branch personnel, contact unit professionals, ) Improved acquisition through a variety of channels (on-line, sale agents, telemarketing,...) Increased activation through specific actions 13 / 24

14 Communication strategy Developed compelling messages to trigger customer interest in product offering and maximize effectiveness of external communication Defined most appropriate language and tone to be used with target customer segments Analyze target customer profiles Define key messages and marketing material to be used Develop scripts, define language and tone to guide sales personnel in: Identifying business customer needs Getting key messages across to customers of different segments Managing client objections on cards sales and usage Improved ability to communicate effectively to target customers Increase visibility and interest of in product offering throughout all business segments (SMEs, Corporate & Public sector) Improved ability to manage and overcome client objections Increase acquisition of business customers Increase activation & usage 14 / 24

15 Sales toolkit Build tailored sales toolkit to facilitate sales-related efforts Benchmarked payment products and identified relevant gaps to be exploited vs. the competition Develop insights on features of commercial proposition, insurance coverage and add-on services Develop key messages, define language and tone to guide sales force in: Identifying business needs of specific clients Addressing specific business segments Develop guidelines to successfully manage clients objections on cards acquisition & usage Identify gaps with respect to the competition to highlight advantages of client offering Structured sales content on commercial products and packages aimed at supporting sales personnel Provide key sales messages, insights and communication guidelines to develop a set of tools addressed to sales personnel Provide useful hints to successfully manage client objections on acquisition and usage 15 / 24

16 Cardholders incentive strategy Defined incentive strategy aimed at increasing profitability and spend of business cardholders Assess incentives and reward mechanisms addressed to target cardholders Define incentive program mechanics & rewards Identify target customer base on domestic and international buying behavior Define incentive offering at merchants level Create marketing plan Define monitoring performance management and continuous improvement processes Increased knowledge of cardholder behavior (needs, preferences and spending habits) Increase customer profitability Increase customer loyalty through improved customer experience Attract new customers through an improved value proposition Increase visibility 16 / 24

17 Sales force incentive strategy Improved issuer value proposition and understanding customers behavior Develop methodology & processes to increase motivation of the sales personnel based on: Achieving sales targets Commercial card acquisition & usage Define sales force achievable objectives Develop financial model to value sales incentive program and ensure issuer s profitability Develop continuous improvement framework Increase acquisition and activation Motivated sales force to maximize acquisition and activation Increased ability to plan sales objectives 17 / 24

18 Instant Payments Identified use cases where Instant Payments offer value added benefits over and above those of other payment services Recommended pricing options and positioned Instant Payment services alongside existing payment offering Identify use cases of F2F and remote outgoing and incoming payments for consumer customers (P2B, P2P, B2P) and business customers (B2B, B2P, P2B) Analysis of benefits, issues and perceptions of existing payment methods vs. Instant Payment services Define pricing options for Instant Payment services based on value provided in the use cases for consumer and business customers and competitor offerings Positioned Instant Payments in the context of the existing payment offering aimed at avoiding cannibalization Overview of Instant Payment services offerings Positioning of Instant Payment services alongside existing payment offering Recommendations of how to structure and price an Instant Payment proposition for consumer and business customers Key marketing/communication messages to be used for successfully promoting an Instant payment services proposition 18 / 24

19 e-commerce acquiring Designed and implemented an e-commerce acquiring on-boarding service entirely web-based (end-to-end) Benchmark e-commerce acquiring on-boarding offering Design onboarding (front-end) and back-end processes Embedded KYC and AML requirements within the end-toend web-based onboarding process Designed a userfriendly user experience Create FAQ material Design customer support services and trained helpline staff Structure back-end, after-sales processes and user interfaces Understanding competitor offerings, market share in the e- commerce acquiring space Identification of opportunity and positioning of client offering Actionable end-to-end onboarding process (front-end), backend processes and user interfaces FAQ Trained customer services personnel Project management activities during the entire project cycle 19 / 24

20 PSD2-related opportunities Provided strategic direction, recommended opportunities along with relavant use cases Analysis of key impacts of the PSD2 regulatory framework on Banks, Third Party Providers (TPPs), Customers and Merchants both near term and longer-term Analysis of strategies and tactics on how to cope in a PSD2 payments ecosystem Analysis of relevant opportunities provided by a more market-driven environment Identify use cases that command relavant opportunities PSD2 impacts on relevant players Strategies to benefit from PSD2 for Banks, Third Party Providers (TPPs) and Merchants Recommendations of relevant opportunities provided by a PSD2 world along with operational examples Operational insights and recommendations 20 / 24

21 Card porfolio migration Structured migration process to maximize acceptance of new proposition through specific actions on clients, roles and responsibilities of personnel and appropriate timing Defined actions to help sales personnel in identify and exploit up/cross-selling opportunities Design and structure compelling migration strategy Define specific messages to be delivered and actions on customers to maximize: Awareness of new product/services to replace the current on offer Migration towards new product/service Effectiveness of up/cross-selling initiatives Define external communication channels and manners (scripts, language & tone) Monitor migration process Improved success of migration initiatives with aid of tailored structured framework Facilitating assignment of roles & responsibilities of resources involved (branch personnel, contact unit staff, ) Effective monitoring of migration targets Exploit opportunities to up & cross-sell Consolidated customer relationships Ability to quickly implement corrective actions through continuous improvement process 21 / 24

22 Portfolio management Developed monitoring tool of key performance indicators (KPIs) to track card portfolio performance and effectiveness of portfolio management activities Developed and implemented a set of improvement actions to improve portfolio performance Identify Key Performance Indicators to monitor all aspects of the portfolio, including Risk Management Develop ad-hoc performance reports Develop monitoring tool that will gather transaction data, perform necessary analyses on all relevant KPIs Develop structured portfolio management process, define roles and responsibilities of personnel, management activities and timing Increased profitability of commercial card portfolio through on-going monitoring of relevant KPIs to enable continuous improvement through appropriate actions Proactive actions through a structured portfolio management approach Ability to take timely improvement actions based on a continuous improvement process via a alert mechanism of relevant KPIs 22 / 24

23 Analysis & management of credit risk Developed tactical recommendations based on an analysis and segmentation of risk profile of the commercial card portfolio Retrieve relevant data: accounts/cards/customers Conduct in-depth analysis to understand: Customer behavior Segment characteristics and profile Existing scoring performance Scorecard validation Transactional activities Define actions to monitor customer exposure Monitor unusual behavior to mitigate portfolio risk Segment-specific profitability that include risk assessment Segment-specific risk profile and insights key to develop a compelling credit risk management strategy Identification of opportunities to develop collaboration between product & risk teams Identification of new opportunities based on risk profile (eg. extend credit lines to improve revenues) Mitigate overall portfolio risk and reduce losses 23 / 24

24 CleverAdvice Via Ferrante Aporti Milano, Italy T F e postmaster@cleveradvice.eu w cleveradvice.eu Results not Reports.