We had a fantastic conversation with Jacquie Amacher and Gabriel Gallegos from Juvo a few weeks back, and even after over a half hour on the phone, it still took us a while to fully understand what the firm does. And once we did, we realized it was QUITE wonderful.
Juvo helps the "underbanked" throughout the world create an "identity score" - better known in our part of the world as a "credit score". The US has a great banking & financial system (for all its flaws), and while much of our population is considered underbanked, the majority can build credit relatively easily.
Much of the rest of the world is not so lucky. So Juvo has created a way for people to get credit from their mobile carriers, and by repaying that credit/loan in a timely fashion, they can then build their "identity score" (credit score) further. This benefits BOTH the customer and the mobile carriers. Furthermore, it can save people who are in developing countries significant amounts of time. Whereby previously they have had to travel to a specified location to pre-load their mobile credits each time they run out (can you imagine?!), now, they can simply get extended credit through their mobile device/cell phone. So, while this company may not touch you personally with their product mix, they're definitely one to watch and are poised for massive growth.
(Cindy Taylor/Publisher)
"A new report by Juvo, the pioneer in mobile Identity Scoring, reveals that data-science driven mobile financial services will significantly impact the global pre-paid market, increasing operator revenues by as much as USD $70 billion. The report, Data Science: Driving Mobile Operator Digital Transformation, demonstrates how establishing financial identities for prepaid subscribers improves operators’ business performance and their broader pursuit of digital transformation, delivering up to 10 percent lift in Average Revenue Per User (ARPU), a 50 percent reduction in churn and a two-fold increase in lifetime value.Juvo’s report highlights how data science-based mobile financial services dramatically increase engagement across the entire prepaid market, regardless of demographics or geography. When machine learning and predictive credit algorithms are applied to usage data continuously and in real-time, individual subscribers can be assigned personalized financial identities. As intelligence grows, credit worthiness is established and access to a wider array of mobile financial services is unlocked. The report demonstrates that establishing credit is independent of wealth or income, increasing the value of financial identities to users regardless of circumstance.
“We’re only scratching the surface of what is possible with data science-led digital transformation," said Steve Polsky, CEO and founder of Juvo. “Identity-based services deliver unprecedented performance gains - just the impact of credit extensions alone to the global prepaid market could improve revenues, dramatically reduce churn and capture billions of dollars in lost revenue, and more broadly over 1.5 billion people globally lack any form of legally recognised identity. . When data science is used to turn anonymous subscribers into identified subscribers, operators can unlock the full potential of their brands and subscriber relationships.”
Identifying, understanding and driving individual customer behavior allows operators to transform their customer relationships and is a critical ingredient in delivering on digital transformation. According to the GSMA, more than 75% of mobile users around the world are anonymous prepaid subscribers. By adopting sophisticated data science methodologies, operators can shift to identity-based relationships and lay the foundation for broader digital transformation.
Real World Impact
Based on aggregated data across multiple markets and operators, data science-led digital transformation is proven to have the following business impact, simply by enabling credit extensions to increase the availability of mobile services:
- Prepaid ARPU increases by 10-15% within the first 30 days of deployment
- Prepaid churn reduced by 50% within 90 days of deployment
- Lifetime value for each subscriber doubles
When applied to the global prepaid market comprised of 3.7bn subscribers, with an average annual ARPU of $150 per user, data science could boost operator revenues by $70bn.
The report Data Science: Driving Mobile Operator Digital Transformation, which reveals the strategy, the methodologies, and real-world impact of data science on mobile operator businesses, is available for free download.Source: www.juvo.com