A career in General Insurance

| May 10, 2017

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Follow Vivian Tse’s career journey from Graduate to Director with EY Australia’s Actuarial Services team.

Spotlight

United Nations Sustainable Stock Exchanges I

The Sustainable Stock Exchanges (SSE) initiative is a peer-to-peer learning platform for exploring how exchanges, in collaboration with investors, regulators, and companies, can enhance corporate transparency – and ultimately performance – on ESG (environmental, social and corporate governance) issues and encourage sustainable investment. The SSE is organized by the UN Conference on Trade and Development (UNCTAD), the UN Global Compact, the UN Environment Program Finance Initiative (UNEP FI), and the Principles for Responsible Investment (PRI).

OTHER ARTICLES

AI in Banking – An Analysis of America’s 7 Top Banks

Article | February 13, 2020

While tech giants tend to hog the limelight on the cutting-edge of technology, AI in banking and other facets of the financial sector is showing signs of interest and adoption even among the banking incumbents. Discussions in the media around the emergence of AI in the banking industry range from the topic of automation and its potential to cut countless jobs to startup acquisitions.

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What's So Special About Embedded B2B Finance?

Article | April 14, 2021

The rise of buy-now-pay-later in the consumer world provides a powerful example of what embedded finance at the point of need can do for brands. Consumer debt ethics aside, B2C buy-now-pay-later providers can proudly point to the fact that implementing a BNPL solution can increase basket sizes for retailers by 20-30%. The concept, although around for years in various forms, has now been delightfully served as an option during the customer’s checkout process and the marketing has been simplified and on point. Even as merchants must pay for the privilege of offering BNPL (keeping it interest free for customers) upwards of 4-6% per transaction, the benefits have been too good to resist. Although let’s face it, regulation aside (there are significant hoops to become licenced in B2C finance), underwriting to consumers is easier than extending credit to businesses thanks in part for the need to understand factors such as business servicing capacity, shareholder control, bespoke pricing, industry risk and not to mention the exposure risks associated to loaning out more significant totals. Therefore B2B lending speed and embedded innovation naturally lags behind B2C. That said, there have been remarkable steps forward over the last two years as more and more millennials and digital natives take over business buying decisions. Existing B2B finance models For many B2B suppliers or merchants, a referral programme to a business finance provider is nothing new. The benefits can be obvious, especially as the alternative is to embark in to the dangers of offering trade terms and all the cashflow and collection troubles that come with it. By introducing business finance, suppliers can get paid upfront and those pesky risks evaporate. When used effectively in a negotiation, financing offers can also allow suppliers to remove expected buyer discounts. Total order values and loyalty increase (as in the consumer world) and accessible finance even helps a buyer’s businesses become more successful — resulting in increased volumes of purchasing. Still, referral programmes of this nature have their problems. Even with same day B2B funding available, finance applications can hold up the buying process. This means suppliers who are keen to leverage the buyers peak interest, antagonising don’t close sales as quickly as they could and run the risk of the of the application declining or extra customer frustration and fatigue. While the benefits for introducing finance in to the sales process still outweigh the negatives, more improvement in the experience can be achieved. Enter Fintech-as-a-Service. Embedded pre-approvals Imagine a situation as a B2B supplier or merchant where you can provide a pre-approved finance offer straight to eligible businesses through your own CRM. This level of proactivity provides you with a powerful tool in drawing in loaded sale opportunities from customers who are primed and ready to transact. The advantage over your competition is significant as your customers already know they can painlessly purchase from you once they’re ready for more stock. A new revenue stream also opens for your business as your FaaS provider hands you commission for each loan a buyer takes. This example highlights the power of pre-approving customers in a proactive capacity. For this level of FaaS to work a customer permission gate is required, either as part of a customer onboarding/sign-up process or through invitation. With a white-labelled or co-branded experience, buyers can securely connect via open banking through a third party (FaaS provider) and be reassured that no visibility of this data given to their supplier. Other business data sources (e.g. payment or accounting software) can also be connected at this point. Through providing these connections through the supplier or merchants portal, buyers can sit back with the knowledge that they will be notified if and when they qualify to purchase goods or services on finance. Once pre-approved, sellers can push a message to their buyer from their CRM system along with any sales pitch or offer they like. Convincing buyers to give this connection permission in the first place is a challenge that clever marketers and UX specialists will need to overcome. Embedded at the point of need Again, we only need to take BNPL as an example of an embedded finance solution served beautifully at the point of need. Buyers, motivated at the time to transact, are more likely to have the determination to apply for finance within the same CX process. Unlike traditional loan referral schemes that remain disjointed with long and possess awkward handover points, through FaaS, an embedded financial product is especially attractive when done right. It can merely feel as a simple ‘way to pay’ option in the buyer experience. No application forms; no double entry of business data; no waiting. The challenge therefore is to create seamlessness, integrated and quick decisioning. Again, still a relatively tall order for B2B finance especially the higher the loan total is (despite advances in innovation and same day funding). The potential for more instant decisioning will need to be enabled through a) improvements in API sharing and open finance analytics to confident business underwriting and b) buyer adoption on online services and platforms. This later point can already be seen in the growing gulf of funding accessibility between online and manual powered businesses. For example an eCommerce buyer, generating rich volumes of data through online sales and excessive B2B Software-as-a-Service (SaaS) use has the perfect data points that can be integrated in to support lending applications. In contrast, a blue collar business, with a limited online presence and who only drops a shoe box full of receipts to their accountant every 90 days, will find it more difficult to provide the data required for quick decisioning. The new normal Embedded B2B finance is here to stay and serious FaaS providers are emerging. More and more suppliers and merchants will be leveraging the power of this new technology trend to create a more successful, loyal and satisfied buyer. Through proactive pre-approvals, B2B sales teams can be armed with more empowered conversations and unique advantages over the competition. Alternative business lenders operating as an embedded finance FaaS will also benefit by leveraging the scale of the B2B supplier and merchant channel, accessing more businesses through wider mass distribution. Soon, simply plugging in an embedded finance solution in to your existing CRM system will become a painless experience. B2B lending products of the future, through speed of underwriting and integrated data points, will be commonplace as an attractive option during the sales process.a

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Effective Use of Intent Data for Financial Institutions

Article | June 30, 2021

The world began its course to become a digital open book after the internet came into existence. With almost everything available for purchase, the internet has brought the world to the buyer's doorstep. With the purchase, comes the data, and with effective use of the data collected within a period, any industry can speculate the buyer’s journey and take compelling steps to attract the buyer. Looking at the facts, around 93% of purchases start with internet research. Intent data is the name of the collection of the behavioral signals that a user shows while purchasing anything. This data helps businesses be available at the right time and the right place to pitch their product to the customer who is already interested in buying what they are selling. Businesses can analyze these signals, accurately understand where the prospect is in its buying journey and can give a solution to the problem. With intent data, even financial institutions can up their game and generate greater ROI while accurately predicting the buyer’s position in its purchase journey, and provide the best value to attract him/her. With over terabytes of intent data available for use, financial institutions can use it to flourish in this pandemic hit economy, using fewer resources and marketing their services to ready to buy consumers. Since its inception, intent data is on the top priority of every marketer’s to-do list, with its usage in advertising campaigns, outreach campaigns, content creation, SEO, etc. This article covers how financial institutions can use intent data to their advantage, provide value to the user, and draw massive attention to their platform to reach their ultimate goal and generate more revenue. Before going further, let’s understand the basic concept of intent data and its type that comes into the use for financial institutions. WHAT IS INTENT DATA? Intent data refers to collecting information on online behavioral insights of internet users or prospects, allowing you to better focus on the audience that has more chances of buying your products or services. To put it simply, intent data will help you display your product or services to those already searching for it. For example, your financial department is facing challenges to keep the accounting on track, checking the organization’s financial status, etc. While, you look for the solutions online, you Google “best financial tool for in-house accounting.” Out of millions of search results, your search concludes with some of the top tools like Robotic Press Automation (RPA) in accounting kept aside. Now, your search would be more specific and according to the selected tools. Now, for comparing and selecting the best tools, you may Google- “How RPA keeps track on accounting?” “What is the ROI of RPA in accounting for small enterprises?” “What is the role of RPA in accounting?” And so on. Notice how your search query got specified after some informative searches. Imagine having the power of intent data of your customers and satisfying them with your content. Intent data helps you nurture a highly targeted audience and eventually convert them into your clients. When prospects face challenges, they search for the solution online. While providing the solution for any specific query, websites ask the prospects to accept their cookies. These cookies monitor their intent of searching and this data is then pushed to the marketers to mold their campaigns suited better for these targeted customers. Let’s look at how financial institutions can focus their campaigns on highly targeted prospects with types of intent data. TYPES/SOURCES OF INTENT DATA The types of intent data divide the vast information of intent into three types - first party, second party, and third party. First-party The data you now gather on known contacts and anonymous visitors is first-party intent data. It can also involve prospective website connections, newsletters, emails, and social media. You can use the first-party intent data to segment messages, build workflows, and get more leads. You can assist your marketing and sales team in determining how to approach and convert a prospect. Second-party Second-party data refers to data collected by another company. It is like gaining insights into your prospects from the shops they have visited earlier. The second-party intent data includes review websites and publishing networks. And all this information is voluntarily provided by the user. Sometimes, the user may also share the contact details and their business email id. Third-party While some systems only track a network of pages, third-party intent data is gathered from all across the web. In several cases, this intent data is extracted using one of 3 techniques: reverse IP lookup, Bidstream data from ad networks and widgets, and media exchange/publishing participants. Third-party intent data can show the user’s intent that is relevant to your campaign. STEPS TO BUILD GREATER ROI FROM INTENT DATA How can a financial institution decide whether a particular lead is worth its investment? Answer: By lead qualification. By segregating each lead into three types, you can decide whether the prospect is an active buyer or someone who wants some information over the web. It allows the marketing team to use their time efficiently and target the leads which are likely to convert. For significant ROI from intent data, financial institutions should gather intent data and segregate it into three types of B2B data- Fit data, Intent data, and Opportunity data. Fit data Fit data shows how well your product or services fit the need of the customers. Imagine if a financial institution provides loans on a low credit score, and a user searches for loans on a low credit score, we can call this collection of information as fit data. With this information, you can efficiently use your time and investment to target a specific prospect. This information collection may include the prospect’s age, sex, job level, job function, and the residing location. Fit data is generally the data that won’t change quickly. It may give you a right fit of prospects for your campaign but cannot tell you the right time or context of search intent. Opportunity data Opportunity data is event-based data on particular prospects. Suppose, you are a financial institution providing a car loan on reduced interest rates, and you come to know that a specific company is crediting bonus salary to its employees. If you market your car loan services to their employees, you can have more leads as you know they have a bonus salary in their account. This is called an opportunity data, which sometimes is also referred to as data scoops that give you information about favorable conditions for sale. As the name suggests, the opportunity data gives you the data of a perfect opportunity to market your services to targeted prospects. Intent data Intent data indicates that the time has come to engage with folks who actively express a desire to acquire a solution. When the intent data is integrated with other signals and a solid fit, the chances of conversion increase dramatically. It's helpful to know when there's movement at a company, but if you don't know who to connect with and don't have a phone number or email address for them, it's only informative. You need actionable data along with intent data to perform a perfect marketing campaign. COMMON USE OF INTENT DATA A Segment to sort out active prospects With the use of intent data, B2B marketers find companies actively looking for products or services they are serving. Intent data solutions provide segmentation tools that you can utilize to sort out active prospects that fit perfectly with your services. This segmentation tool can help you filter your prospect with an unlimited combination of the type of company, contact details, location, industry, and technology they use. Intent data for Account-Based Marketing Leading B2B marketers use intent data to drive their ABM campaigns as it naturally fits these campaigns. ABM and intent data are the two sides of the same coin, as ABM delivers results through specific account’s interest and intent data provides timely opportunities to initiate the contact. Integrating both helps you elevate your marketing reach. Intent Data for marketing campaign Optimization Integrated marketing strategies help financial institutions because marketers can pump useful insights to drive effective and relevant demands. The sales team of financial institutions get into the conversation with the buyer while having more information on their pain points and what solutions they are looking for, giving them an upper hand in exchange. SIGNIFICANT FINANCIAL MARKETING TREND Insight-driven marketing With the help of effective machine learning and artificial intelligence, insight-driven marketing helps financial institutions to offer financial assistance to the right fit of customers. Marketers can further collect the right type of customers that fits the services and not the other way around. Prospects with other financial needs can be routed to more appropriate services you offer. Awareness of the customer journey Intent data helps financial institutions optimize and understand the customer journey and correctly map customer interactions. It enables to influence the end-to-end experience of the customer. By having a perfect understanding of where the customer stands in the customer journey, financial institutions can market their services according to their needs. Increased personalization Intent data allows the marketers to look further into the minds of their prospects. It enables them to read the customers as an open book while segmenting them on their thought process. For example, which customer is more savings-oriented? Which one is planning for their retirement? With these insights, marketers can match the right customers to their services with the relevant type of marketing to compel the audience. TYPES OF MARKETING SIGNAL AVAILABLE Signals are the hints prospects resonate, showing financial institutions they are ready for being potential customers. These signals are everyday actions like Googling stuff they need orLike hard searching online, clicking on financial institution ads, applying for any loans, and paying off debts. Financial institutions can use these signals to run highly specific marketing campaigns. Let’s look into these marketing signals further. Most marketing signal falls into three major categories, such as: Behavior-based The behavior-based marketing signal includes hard searching like credit inquiries and online searches that signal intent to look for services. It may also include some minor changes that indicate future requirements like a change of residence or buying intent of large purchases like automobiles and real estate. Event-based Event-based marketing signals include automobile lease expiring, mortgage rate settings, or child passing the high school. These are the hints that indicate the prospect is going to have a requirement for your services. These signs show that the customer is about to have a significant financial shift, and financial institutions can use this opportunity to market their services. Predictive Predictive signals are passive hints that prospects show. It may not be as obvious as behavior-based, but it can set a boundary to your targeted customers. Some of the predictive marketing signals could have data of savings, debit consolidation, and mortgage refining. Predictive marketing signal can give low fidelity and can assure you the maximum coverage of your marketing campaign. CONCLUSION Using signals to attract and retain consumers is an effective component of a well-thought-out marketing strategy. Moving to a signals-based strategy, on the other hand, does not have to be a huge overhaul of your current procedures. Continue to use your tried-and-true strategy, but experiment with new ways of analyzing and responding to signals. Worried about how much money you'll need to set aside to fund the signal-based marketing strategies? You can assess the ROI of the marketing strategy before expanding your program if you start with a scalable service with no commitments. Traditional signals continue to be relevant and form the basis for customer-focused marketing. Combining them with potentially powerful signals that indicate purchase intent will enable proactive communication and elevate financial marketing initiatives to the next level.

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Dangerous Intersection Ahead: Privacy and Banking Fintech

Article | March 9, 2020

Bankers in the fintech space are familiar with the FFIEC’s Guidance recommending multi-factor authentication for certain financial transactions. Multi-factor authentication, at least for “high risk” transactions, requires a combination of something you know, something you have and something you are. This last factor is often referred to as biometric information. While biometric authentication is making great strides around the globe, its adoption in American banking is not yet common and poses its own set of legal issues.

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Spotlight

United Nations Sustainable Stock Exchanges I

The Sustainable Stock Exchanges (SSE) initiative is a peer-to-peer learning platform for exploring how exchanges, in collaboration with investors, regulators, and companies, can enhance corporate transparency – and ultimately performance – on ESG (environmental, social and corporate governance) issues and encourage sustainable investment. The SSE is organized by the UN Conference on Trade and Development (UNCTAD), the UN Global Compact, the UN Environment Program Finance Initiative (UNEP FI), and the Principles for Responsible Investment (PRI).

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