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- 3. BytheNumbers:$141BillionMarket Overall Pay Day Loan Market grew by 5.1% in 2017 2018 The Online Lending loan market in India is estimated at $10.27 billion (Rs 70,000 crore) The Market was projected that it will touch $14 Billion by 2017 year end The value of loans in India increased 5.1 percent year-on-year. The Loan Growth in India averaged 12.08 percent from 2012 until 2017 Market is expected to increase by 2.1% to $144 Billion
- 4. DRIVERS Consumers Seeking Small-Dollar Credit: What’s on the Menu? Changes in provider product offerings mean consumer spending continues to shift away from the single payment model of payday loans, including those offered online, and toward short term credit offered through installment loans and Subprime Credit Cards New Routes for Growth While some lenders work as the front-end technology providers to large non- banking finance companies (NBFCs), many like EarlySalary and InstaPaisa have acquired NBFC licenses themselves from the Reserve Bank. It is expected that FinTech and e-Landing platforms will lead the next batch of innovation. Youngsters are adapting more towards to such kind of payment platforms as they are the ones tapping more into their diverse needs like education, travel, honeymoon plans etc. Rise in Credit Cards usage Millenials Spending Patterns- 69% of their monthly income on family, household items, EMIs and entertainment. Rise in Consumerism Urbanisation- India's millennials (which 60-70% of the population)to be catalyst for consumption.
- 5. SWOTAnalysis Online Lending provide fast cash— immediately or at least within 24 hours from requesting the loan. They are convenient, and for some consumers they're the only available loan source. Their widespread use indicates that many consumers rely heavily on payday loans. Looking into payday lending—the structure, the high fees, the high rates of renewal and loan sequences, the cycle of debt— provides reason for concern. Consequently, some regulations prohibit payday loans, while others heavily regulate them.
- 6. Weaknesses Monthly borrowers are disproportionately likely to stay in debt for 11 months or longer.Most borrowing involves multiple renewals following an initial loan, rather than multiple distinct borrowing episodes. Strengths Unlike traditional loans, borrowers do not need collateral or a particular credit score to get a payday loan. Opportunities Fintech generates a comprehensive data view of customers which AI can be used to refine and better shape the customer experience and service offering. Threats There is a limitation with regards to the human empathy in understanding the underlying need for the fast cash which the Machine might not be able to determine.
- 7. TAM,SAM,SOM Analysis It will enable a long-term societal change in the way services are provided for those who are financially excluded and under-served.
- 8. TAM The total market worth $141 Billions where it last reported the growth of $7.8 million or 5.9% from 2014 to 2015. SAM Consumers that are credit challenged have subprime credit scores below 600, or are unscorable due to a lack of sufficient credit file information.There are approximately 121 million U.S. adults who are credit-challenged. SAM In 2017, estimates show that among U.S. households, 6.5 percent (8.4 million) were unbanked; and 18.7 percent (24.2 million) were underbanked—that is, they had a bank account but used alternative financial services, such as payday loans.
- 9. Strategy Strategy is to utilizes social media-based underwriting decision making to deliver an amazing and improved lending experience to its customers, thereby helping young professionals achieve their financial goals effortlessly and in time. Tactics Brand communication consists majorly of conveying messages effectively to generate or simulate a connect or relevancy. It starts off with creating Marketing Personas and deriving ideal customer profiles Execution Strategic Partnerships should enable to scale business, build brand reputation, provide access to a broader audience, and help increase market share. It can be in any way, Strategic Sales Partnerships, Strategic Integration and Referral Partnerships, Cobranding. Strategy, Tactics, and Execution
- 10. ImplicationsofAIforpaydayloans EnhancesCustomer Experiences LowersOperational Costs IncreasedCross Selling GreaterOnline EnagagementThe promise of AI is that theoretically it can analyze all of the data sources together to create a coherent decision of creditworthinessand streamline the loan process while mantaining the privacy. A major goal is to use modern data science to automate the loan proces. Some companies have also automated some of the data entry, processing of paperwork, and verification processing. Hence reducing the cost. The idea is that extra data provides not just more insight into people with established lending scores, but also suggest to individuals how much more they should contribute to the product and recommend new offers and services. With the application of AI, the companies are aiming to create personalised and proactive user experience more than doubled click to action and also boosting avearge number of clicks across the websites.
- 11. MarketingStrategy Remarketingcanbetriggeredbyvariouseventsusing analytics Session Visit Frequency Specific Clicks Use of Feature
- 12. TargetingStrategyforDisplayADS Interest categories + Demographics + Keywords - Run of Network - Medium Impressions + Medium CTR Placements + Demographics - Relevant High Traffic Sites - High Impressions + Low CTR Topics + Keywords Contextual - only on specific keywords pages brand specific + service specific low impressions + High CTR
- 13. ContentMarketingKeeping content and good values at the center of marketing help attain goals while educating and engaging customers/ users . Content and digital Marketing has a Symbolic Relationship Type of content Time of posting Frequency of posting 3 main components to social media content strategy: This can be accomplished by maintaining a pre-planned editorial calendar. Content should be educative, engaging, promotional, descriptve depending on the position of user in the buyer's journey
- 14. Exclusivity of offer Remarket/Activation User Acquisition Customer Success Referral Program Marketing automation is about as close as we can get to scale this Can be used for:- EmailMarketingisultimatelyapursuit ofsendingtherightmessagetothe rightpeopleattherighttime EmailMarketing Does the conatct Match the following conditions ? (has not clicked any link in campaign Ask customers for review Contact Purchases a product Add New Product Wait for 1 day(s) Send Email Ask customer for a review (View Reports) Wait for 2 day(s) Y Send Email Reminder - Ask customer for a review (View Reports) N End this automation
- 15. MediaMix PaidMedia Search Advertising (PPC, SEO) Display (GDN, Other display networks) Influencer Marketing PR Social Media Facebook Retargeting (GDN, Social, Other networks) Video Preroll / Content Promotion
- 16. FINANCIALLY-UNDERSERVED-MARKET-SIZE-STUDY_CENTER-FOR-FINANCIAL-SERVICES HTTP://WWW.AUTONOMYINSTITUTE.ORG/ HTTPS://FILES.CONSUMERFINANCE.GOV/F/201403_CFPB_REPORT_PAYDAY-LENDING.PDF HTTP://WWW.MEDIANAMA.COM/2017/01/223-INDIA-27-3M-CREDIT-CARDS-739- 3M-DEBIT-CARDS- OCTOBER-2016/ HTTP://WWW.BUSINESS-STANDARD.COM/ARTICLE/COMPANIES/INDIA-S- MILLENNIALS- TO-BE-CATALYST-FOR-CONSUMPTION-116060200033_1.HTML Sources: