Payment intelligence to enrich, protect & grow your business

Passionate About Payments

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Passionate About Payments

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Risk OptimisationNot Risk Minimisation

INTRODUCTIONPetrol to payments

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Risk OptimisationThe holy grail - how do we find the perfect customers

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Risk OptimisationMeasuring KPI’s that help optimise the KVIs

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Volume growth Unit margin growth

Grow customers

Grow existing customers

Reduce attrition

Extend Sales Channels

Segment to target high margin customers

Reduce fraud, bad debt

Increase self service

Operational improvement

Additional high margin products/services

Value – best in class

• # accounts• Customer life• Cust lifetime value

• Revenue/account• Share of wallet

• # dormant accts• # lost accounts• Account attrition volume

• Number of partners

• Revenue & Cost per Tx• Margin/account

• Fraud• Bad debt

• # customer support interactions

• Cust satisfaction

• Hr/core activity• # process steps

• Revenue due to add’l prod/svc

Key valu

e ind

icators

Key p

erform

ance

ind

icators

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Customer Value/Risk Segmentation

Low Value

Low Risk

High Value

Low Risk

Low Value

High Risk

High Value

High Risk

Value Risk Index

3/30/2015

Risk OptimisationSegmenting out high value/low risk

Big Companies

Risk Minimise

Have Strong Balance Sheets

Small Companies

Take greater risk

Don’t have the balance Sheet

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Risk OptimisationNot that easy

what it really looks like

what people think it looks like

SuccessThe Three Disciplines –companies should seek to excel in one

and be competent or better in the others

More complexityExplosion of innovation

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Managing Greater Customer ChoiceTechnology and adoption rates

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More customer choice = more dataCreating more and more decisions

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More customer choice = more decisionsCreating more and more decisions

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Fraud ExamplesGenuine ExamplesCrisp Decision

Boundary

ExpansionExpansion

Cgenuine Cfraud

Plausibility Range

Business Reality Under invested back offices

30/03/2015 12COMPANY CONFIDENTIAL

Banks looking for a pay-off from investments made in digital processes should focus on back office automation projects and steer clear of multi-channel integration, according to research from McKinsey.

FINEXTRA, 9th December 2014

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more risk more effort

Fraud

Rising costs

Reduced resource

Payment types

Sales channels physicalonlinemobile

Services Integrated Platforms

Demand for value added &

personalised services

more complexity

Competitors

Your business is under increasing pressure from external and internal drivers

Rapidly Evolving LandscapeWe understand your challenges

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End-to-end industry-compliant

payment service platform

Self service

Rules engine

Real time information

Operations

Sales and marketing

Credit and finance

Customer service

Customer friendly self service solutions

Self learning back office solutions

Payment data is rich with information, what, where and what time it was bought, the price ofthe goods, (some channels, who has bought, delivery address, e-mail, telephone number)

Solution – Back Office AutomationSelf services systems linked with self learning systems

Utilising payment “purchasing pattern” information;

to build customer retention, to prompt up-selling by using buying

recommendations techniques at the point of sale

to optimise price/margins and supply chain

to help better manage the credit and settlement processes

Using payment data to automate

decisions making

Data Exports

SystemAlerts

BusinessAlerts

EnterpriseLinks

Pattern Detection

Rule Optimisation

Rules Engine

Data Imports

Established Payment Data

Sources

New Emerging Data Sources

Real Time Decisions Using AutomationWe do it for fraud – why not other areas

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CustomerValue/Risk Segmentation

Low Value

Low Risk

High Value

Low Risk

Low Value

High Risk

High Value

High Risk

“AD HOC”

ProspectTargeting Criteria

New Customer

Monitoring

Existing Customer

Monitoring

3/30/2015

CustomerValue/Risk Segmentation

Low Value

Low Risk

High Value

Low Risk

Low Value

High Risk

High Value

High Risk

REFINED

Customer ManagementReal Time Portfolio Management

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Volume growth Unit margin growth

Grow customers

Grow existing customers

Reduce attrition

Extend Sales Channels

Segment to target high margin customers

Reduce fraud, bad debt

Increase self service

Operational improvement

Additional high margin products/services

Value – best in class

• # accounts• Customer life• Cust lifetime value

• Revenue/account• Share of wallet

• # dormant accts• # lost accounts• Account attrition volume

• Number of partners

• Revenue & Cost per Tx• Margin/account

• Fraud• Bad debt

• # customer support interactions• Cust satisfaction

• Hr/core activity• # process steps

• Revenue due to add’l prod/svc

Ke

y value

in

dicato

rsK

ey p

erfo

rman

ce

ind

icators

Fraud risk

• Traditional transaction rules looking for suspicious activity or changes in behaviour

Credit risk

• Identifying customers with a change of circumstances who may require credit review

Marketing

• Identifying customers who met spending milestones or where transaction activity may be applicable for product upgrade

Collections & recoveries

• Identifying customers who spend beyond means or continue to accumulate debt.

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Holistic Business ManagementMeasuring KPI’s that help optimise the KVIs

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THANK YOU FOR YOUR TIME

Questions?