EXPERIAN BUSINESS RESILIENCE BLOGS: HOW TO WORK THROUGH A PANDEMIC
Welcome to the first of our Business Resilience blogs, which is part of our ongoing series of post-COVID information, services and solutions.
Cultivating resilience in a crisis: Four business solutions for working through a pandemic
Across all sectors, consumer demand is declining as social distancing and low confidence fuel a drop in discretionary spending. As the crisis escalates, and business disruptions continue, we’re all grappling with the unknown.
Yet what is likely following the outbreak is a rethink and economic re-boot on numerous aspects of business, industry and commerce. Businesses need to be agile enough to support new and emerging trends, and find different ways of working now and in the years to come.
“Despite the short-term challenges, by working together, and using powerful insights, data and tools, both businesses and their customers can come back to a stronger, more secure, and brighter future,” says Veronica Flyckt, Head of Analytics and Site Manager for Experian The Netherlands. “As trusted partners to our customers, we want to offer insights and useful knowledge, and in these blogs we cover a host of key steps to help business leaders safeguard commercial resilience in these unprecedented times,” she adds.
As part of Experian’s ongoing support for our global clients, we have distilled the following four success strategies to empower businesses in banking, telco, insurance and retail to ensure the continued acquisition of new customers, safeguard existing customers and uphold business quality, now and in the future.
1 | Banking will require greater investment in advanced modelling capabilities
Though the solvency and liquidity positions of European banks are generally sound, the crisis will deeply impact new lending, capital requirements and the profitability of banks. As new regulations are introduced to mitigate the economic impact of the crisis, success hinges on continually meeting evolving commercial and regulatory requirements, and planning successful risk strategies.
To help businesses interpret complex and shifting information, having advanced modelling, forecasting and stress-testing capabilities at your fingertips becomes indispensable. Regulatory models, economic forecasting, stress-testing and scenario analysis will all provide banks with crucial insights into the downturn capital requirements.
Particularly where expert opinion can differ on critical issues, combining lending policy and economic forecasts enables more future-proof risk modelling. See our Business Resilience blog focused on Banking.
2 | Telcos must transition to digital acquisition to protect their customers
Even before the start of 2020, analysts were predicting scaled opportunities for greater connectivity. During the next decade, 5G’s arrival is expected to drive US$620 billion in business opportunities, especially from video analytics and real-time automation.
But while digital channels offer convenience to businesses communicating remotely, they can also provide an easy route for fraudsters – especially during periods of economic duress. The challenge for telco leaders lies in consistently delivering the right customer experience while safeguarding their customers and the business from fraud.
For cost-effective fraud prevention, telcos must support the increased use of digital channels for both acquisition and continual transaction monitoring. Leveraging application scoring, ID verification and digital fraud prevention solutions will also empower customers with genuine self-service purchase options. See our Business Resilience blog focused on Telcos.
3 | Insurance institutions will likely benefit if they focus on customer management
In tougher market conditions, investment is likely to decline as the pandemic impacts business confidence and cashflow. Now with a growing number of projects postponed or cancelled, and export demand limited by overseas lockdowns, some long-term scarring to the economy is expected.
Of course, policy coverage will depend on the specific insurance, but a greater focus on customer value, relationship and retention management remains essential. Bureaux, alternative data and scores, as well as machine learning and AI will strengthen insurers’ strategies for digital acquisition and customer management.
Coupled with advanced analytics, external data also becomes powerful for helping insurers improve fraud detection, whilst making more informed decisions that benefit both their business and customers. See our Business Resilience blog focused on Insurance.
4 | Retailers can gain a competitive advantage by leveraging digital capabilities
As foot traffic falls and restrictions on the maximum capacity of stores are imposed, critical and appropriate medium-term tax breaks are being made available for vulnerable sectors such as retail and e-commerce.
But forward-thinking retailers are already using their greater reliance on online channels to build long-lasting commercial resilience. By diversifying the distribution channels and growing digital customer acquisition, retail businesses can benefit from data-driven insights thanks to ‘live’ performance technology.
Therefore, bureaux, transactional and alternative data will be crucial elements in retailers’ online growth strategies, offering further advantages through customer targeting, profiling and risk assessment solutions. See our Business Resilience blog focused on Retail.
How Experian can help
Visit our COVID-19 Resource and Support page for the latest white papers and other information relevant to the business resilience of you and your customers.
The circumstances we find ourselves in are unparalleled and changing daily. But by mobilising to weather the short-term impact and adapting business strategies in line with emerging opportunities, businesses can protect both the customers in their care and themselves.
If you’d like to discuss any aspect of this report or find out more about how we can support you through this crisis, please get in touch with your Experian account manager today or contact us here.