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Blog | How mobile data improve client engagement 

Written by: Lucrecia Lopez, Data Scientist and Oscar Pobre, Risk & Analytics Director

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For most people, the smartphone is an essential part of daily life. We carry it around wherever we go, and we spend an inordinate amount of time interacting with it throughout the day. As such, it’s no surprise that the smartphone reveals quite a lot about us. Traits associated with your social network, your communication habits, and technology use are all captured by the device.

In fact, smartphone data has, by now, established itself as one of the most effective data sources for credit scoring. This has been especially valuable for the so-called thin-file segment, where applicants have little or no credit history nor other reliable sources of financial information. How you use your smartphone can now help you get a loan or credit card.

However, as useful as smartphone data has been to the credit industry, there are many other use cases for this data source. In this article, we will explore how smartphone data was used to predict an individual’s need for health insurance. The following data was obtained through an engagement with a large insurer in Southeast Asia, who wanted to determine their mobile app users that would be responsive to a health insurance offer.

Let’s now see theory in action!

 

Your phone contacts shows your organizational skills.

How contacts are labeled on a smartphone can be quite telling of your personality. When a new contact is added, there are many details you can fill-in. At a minimum, you have to complete the contact’s name and phone number. However, you can also add a number of other details, such as their email, company, address, and birthday. Having more than just names and phone numbers on your contact list indicate a higher degree of perfectionism and organization. Those traits are represented by those with a high level of awareness and attention, who want to have order and control over all the events of their lives. They plan for their future. That means that they are the ideal customer to offer an insurance product which allow them to minimize potential risks.

The chart below shows the percentage of population split by the percentage of completed contact information that they have in their phones and each group propensity  to acquire an insurance product. If it is considered that population with less than 30% of their contacts information completed as the group with lowest probability to buy, it is possible to affirm that people who complete more than 50% of their contacts’ details are more than 1.5 times likely to buy an insurance product compared to those who belong to the first group.


Your phone calendar determines your daily schedule and priorities.

How you use your smartphone calendar is another good source of insight. For example, we can see how much time you spend in meetings versus how much time you spend in social events. The habit of scheduling upcoming activities is also an indicator of how organized you are and how well you plan. We have seen that people with these traits, as measured by calendar behavior, are in fact more likely to acquire an insurance product. This is most likely driven by their focus on planning for expected (and unexpected) events.

In the chart below, people were grouped according to the number of calendar events they scheduled.  The chart shows that there is a correlation between an individual’s propensity to buy an insurance product and the number of entries in his/ her phone calendar.

 

Your mobile apps show personal interests.

Another interesting data category relates to the types of apps that you have installed on your smartphone. This is particularly insightful since your apps directly correspond to your hobbies, tastes, interests, etc. People who are keen on games usually have a lot of gaming apps installed. People who are interested in finance have apps related to banking, investments, and even blockchain. If someone has many apps related to sports, health, and healthy lifestyle, that person is likely to be someone who takes good care of himself and is a good prospect for an insurance product.

Going back to our insurance use case, the plot below shows that people with health apps installed are 30% more likely to respond to the insurance offer compared to someone without health apps.

Statistics is the data not your personal information.

We should clarify that companies that use smartphone data are just interested in statistics and the insights you can infer from them. They are not interested in knowing the phone numbers of your family and friends nor the details of your mailing address. The focus is on statistics, predictions, and associations, as they are generated by complex machine learning algorithms. 

As a final note, mobile data should be used as a tool to reach more individuals in need of financial services while further enriching insights on clients, to be able to provide the appropriate products. Financial inclusion is lagging behind digital inclusion, where 1.7 billion individuals and SMEs are still unbanked while registered unique mobile subscribers is already at 5.1 billion. LenddoEFL has been working with mobile data as basis of scoring and predictive analytics for ten years. We have proven and deployed multiple models that help financial institutions with their credit and financial decisioning, at the same time allowing thin-file clients to use their mobile data to access life improving financial services.

Reference:

https://cybersecurityventures.com/how-many-internet-users-will-the-world-have-in-2022-and-in-2030/

https://www.statista.com/statistics/570389/philippines-mobile-phone-user-penetration/

https://www.gsma.com/r/mobileeconomy/

PRWeb.com | Oxfam & LenddoEFL Partner to Help Disaster-Hit Communities, Aligned with BSP Initiatives

A partnership between an international organization and FinTech company that aims to improve financial inclusion and digital finance economy in the Philippines.

LenddoEFL CEO Paolo Montessori (left) and Oxfam Philippines Country Director Maria Rosario Felizco (right) during a meeting with BSP Deputy Governor Chuchi Fonacier (center) on June 6, 2019.

LenddoEFL CEO Paolo Montessori (left) and Oxfam Philippines Country Director Maria Rosario Felizco (right) during a meeting with BSP Deputy Governor Chuchi Fonacier (center) on June 6, 2019.

MANILA, PHILIPPINES (PRWEB) JUNE 06, 2019

A financial technology innovation will help more people from remote communities affected by disasters get faster and more convenient access to financial services.

The innovation is the result of a partnership between international development organization Oxfam, together with a licensed financial institution, and software company LenddoEFL, which aims to give financial inclusion support “to the poor, underserved, and unbanked” in line with the initiatives of the Bangko Sentral ng Pilipinas (BSP).

Oxfam in the Philippines Country Director Maria Rosario Felizco expressed optimism that this partnership would not only provide more efficient registration disaster-affected populations and ensure financial inclusion, but also help boost local economies by increasing access to financial services such as micro-credit and weather-based insurance.

“We have seen how the innovative use of digital cash technologies has transformed the lives of Filipinos, particularly women from marginalized communities. In contributing to their economic empowerment, we also amplify efforts in fighting poverty and increasing resilience in the face of disasters and conflicts,” Felizco said.

At least 1,000 farmers from Cagayan province who were affected by Typhoon Ompong in 2018 have benefited from the electronic Know Your Customer (eKYC) product, which is an alternative digital verification process to register unbanked and unserved people.

This means the registered farmers may now be able to access a wide-range of financial services, including savings accounts and loans from Philippine financial institutions, in line with regulations of the Bangko Sentral ng Pilipinas (BSP)

At least 1,000 farmers from Cagayan province who were affected by Typhoon Ompong in 2018 have benefited from the electronic Know Your Customer (eKYC) product, which is an alternative digital verification process to register unbanked and unserved people.

This means the registered farmers may now be able to access a wide-range of financial services, including savings accounts and loans from Philippine financial institutions, in line with regulations of the Bangko Sentral ng Pilipinas (BSP).

Currently, Know Your Customer regulations in the Philippine have always required face-to face or real-time online interviews to register new-to-card or new-to bank current account/savings account customers.

With this innovation, farmers will be verified faster and more conveniently from their mobile phone.

Oxfam Philippines Country Director, Maria Rosario Felizco sharing about their work in Cagayan region.

Oxfam Philippines Country Director, Maria Rosario Felizco sharing about their work in Cagayan region.

“With our end-to-end fully digital verification solution, we are able to prevent fraud, ensure Oxfam aligns with Bangko Sentral requirements and quickly and efficiently onboard beneficiaries at scale” said Paolo Montessori, CEO of LenddoEFL.

He added, “We are proud to partner with Oxfam and help Filipino communities that need urgent financial support. Providing a solution to help disaster-stricken Filipino communities get access to financial services at a lower cost, faster and more conveniently is a step further to LenddoEFL’s mission of financial inclusion.”

Data from BSP’s latest Financial Inclusion Survey show that 52.8 million, or 77.4 percent of adult Filipinos, remain unbanked. Of these, 60 percent cited not having enough money as a reason, while 18-percent of the respondents said they do not have the documents required to open an account.

The innovation will also aim to support communities frequented by typhoons in Eastern Samar, and those displaced by the armed conflict in Maguindanao, where Oxfam and its local partners currently implement humanitarian responses.

The initiative builds on the lessons learned from previous humanitarian cash transfer programs during Super Typhoon Yolanda and the Marawi crisis, which pioneered affordable digital financial services for poor communities in the Philippines.

Originally posted on PRWeb.com

FintechNews.SG | 12 Companies Score SG$1.2 Mil at The Singapore Fintech Awards 2018

The Monetary Authority of Singapore (MAS) and The Association of Banks in Singapore (ABS) today awarded 12 FinTech companies a total of SG$1.2 million divided for 12 different companies at the Fintech Awards, which took place at the third Singapore FinTech Festival.

This time around, the awards featured a greater ASEAN representation, with a focus on financial inclusion,  spanning different business areas like credit-scoring, mobile security, anti-money laundering, and digital investment. The Fintech Awards, supported by PwC, recognises innovative FinTech solutions that have been implemented by FinTech companies, financial institutions and technology companies.

This year, 40 finalists were shortlisted from more than 280 global submissions including the companies who participated in the ASEAN PitchFest6. The winners were selected by a panel of 17 judges who represent a cross-section of international and local experts from the private and public sectors. The entries were evaluated based on four criteria: impact, practicality, interoperability, and uniqueness and creativity.

The panel of judges includes representatives from Accenture Technology, Allianz, AMTD Group, Credit Ease, DBS, Deloitte, GIC, Grammen Foundation India, HSBC, Insignia Venture Partners, Jungle Ventures, Mastercard, The Boston Consulting Group, The Disruptive Group, True Global Ventures, UOB and Vertex Ventures.

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ASEAN Open Award

Top 3

First Place: LenddoEFL (Philippines)


The company wants to provide people access to powerful financial products without exorbitant costs, quickly and more conveniently by using AI and advanced analytics to bring together digital and behavioural data. This helps lenders serve the underbanked. LenddoEFL has provided credit scoring, verification and insights to 50+ financial institutions, serving over 7 million people.

To continue reading, click here.

MAS.gov.sg | Twelve innovative FinTech solutions recognised at the 2018 FinTech Awards

Singapore, 14 November 2018… The Monetary Authority of Singapore (MAS) and The Association of Banks in Singapore (ABS) today awarded 12 FinTech companies a total of S$1.2 million at the FinTech Awards, which took place at the third Singapore FinTech Festival.

ASEAN Open Award

1st place – LenddoEFL (Philippines)

2nd place – SQREEM Technologies (Singapore) 

3rd place – Finantix Asia Pacific (Singapore) 

ASEAN SME Award

1st place – FinAccel Teknologi (Indonesia)

2nd place – Katipult (Thailand)

3rd place – MoneyMatch Transfer (Malaysia)

Singapore Founder Award

1st place – CCRManager

2nd place – Cynopsis Solutions

3rd place – Thin Margin

Global Award

1st place – Everspin (South Korea) 

2nd place – Naffa Innovations (India)

3rd place – Keychain (Japan)

APAC CIO Outlook | 8 AWS Do's and Don'ts Learned from 8 Years Scaling Across 20 Countries and 300 Serviers

Posted on APAC CIO Outlook website. Refer to this link to read full article.

by Howard Lince III, Director of Enginerring, LenddoEFL

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At LenddoEFL, we work at the intersection of big data, machine learning, and financial inclusion in emerging markets. Each of these imply a level of server sophistication that would be cripplingly difficult without Amazon Web Services (AWS). Our mission is to provide one billion people access to powerful financial products at a lower cost, faster and more conveniently. We use AI and advanced analytics to bring together the best sources of digital and behavioral data to help lenders in emerging markets confidently serve underbanked people and small businesses. To date, we have provided credit scoring, verification and insights products to 50+ financial institutions, serving seven million people. We’ve been able to manage all of this with a team of three infrastructure engineers managing 300+ servers. Read full article.