Business consultancy project

Value Creation of Mobile Financial Services

The implementation of the new service can constitute the absolute benefits for all stakeholders. The cooperation between Azercell and Pasha bank can create mutual benefits and generate affirmative solutions from the revenue and customer retention perspectives. Companies, mainly Pasha, will get the opportunity of the enlargement the customer quantity and reinforce the efficiency. The new cooperation will sustain the new preposition for Azercell and sustain the company attractiveness. Additionally, the new service will differentiate both companies from competitors and create outright advantages. At the same time, the new service will be favorable from the customer aspects as well. The new service will simplify the interaction of the customer with banks and create a new channel for executing personal financial management.
Figure.45 Advantages for the all Stakeholders

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  Advantages for Azercell
  

The difference between the traditional services of mobile operators is steadily shrinking, and the establishment of a differentiating strategy is getting harder to achieve. The new service can give the opportunity to launch the various services and develop the new revenue stream for Azercell in the long run. The additional value-added service can enlarge the product range and create the possibility of constituting the diverse campaign management based on the segmented customer profile. In addition, the newly obtained service can also strengthen customer faithfulness. Nowadays, customers are shifting mobile operators very easily without any hesitations. According to the survey result, 12% of the total respondents are using Azercell and the other mobile operator at the same time. Customer loyalty is one of the fundamentals in the mobile service management as customer retention requires no fewer efforts and attractiveness than acquisition. The additional service in the financial area can seduce the customer attention and prolong the lifetime with Azercell. Comparing with other customer retention campaigns, the new service will not require the sacrifice from gross margin proportion, and conversely has a positive influence on the bottom line.
Moreover, digitalization is a key outline in strategic planning, and the company is aiming to endorse digitalized communication in all procedures of customer management. The development of the new service through innovative approach can emphasize more effective relationship by delivering the real-time personalized financial service management channel. Besides, MFS can be included as a complementary service in the different bundled offers. The combination of MFS with traditional services or with other value- added services can enhance the consumption and sustain the total revenue.

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  Advantages for Pasha Bank
  

Currently, Pasha bank is possessing a leading position in the enterprise market. Meanwhile, the launching of a new service with Azercell can serve as a motivation of driving retail banking strategy to a successful level. The implementation of the new business line can sustain the productive business process and reinforce the market penetration for Pasha bank. The new business line will sustain the new revenue stream for the company and increase the company productivity
Pasha bank has already established the relevant mobile application for customers, but this application is used only for the specific Pasha bank customers and the new communication through Azercell can create the additional mobile channel with customers and trigger acquisition of new customers. In fact, the number of Azercell customers is around 4.5 billion, and almost half of the subscribers are smartphone users. These two factors create the enormous advantageous for Pasha bank in customer management. The vast amount of Azercell customer quantity will positively influence enlargement Pasha bank customer profile and formulate the new segment. The correlation analyses proved the positive relations between smartphone users and data and value-added service consumptions. Considering that there is a strong probability that smartphone users will constitute the main target customers for Pasha bank as well.

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  Advantages for the Customers.
  

Together with entities, the release of the new service can construct several benefits for the customers as well. The implementation of the digitalized mobile financial service through mobile phone number will integrate the customer experience to a higher level of service management. Customers will be able to have touchpoint connections both to mobile operator and bank and through one application.
In fact, in the era of high technological generation, the mobile application is an inevitable part of service operations. Most of the banks are having online banking service. However, the main privileges of this service from other mobile application will be a more simplified approach. For opening a new line or making any change in bank account customer must apply to bank and proceed the required documentation process in the working hours. Azercell already has Mobilbank service, which enables the payment service through Azericard.
Nevertheless, according to the survey results, the awareness about this service is very low, and customers do not use this service very often. In order to activate Mobilbank Azercell subscribers must proceed with all banking procedures, whereas in the new service Azercell customer will not require to apply to Pasha bank directly and sign an agreement and open balance account. By activating the new mobile financial service customer will eliminate any bureaucratic procedures and save time. Customer will need only the mobile identification number and activate the service through SMS or short code. The connection to the service will be available in the 24/7 period. Customer will also be able to download the embedded application or connect to the service through Azercell website. The mobile number will be operated as a bank account, and the customer will be able to make payment for utility services and payment of bills by using the mobile number.

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  Advantages for Aggregator
  

The Data Processing Center of the Ministry of Transport Communication and High Technologies will be limited on establishment the connection between Azercell and Pasha bank. The Data processing center will be worked as an aggregator on transaction of the money and will get the share from the transferred amount. (Data Processing Center (DPC), 2019)

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