Case Studies on the Impact of Mobile Data Collection in the Financial Sector
The following are real-world examples of the transformative impact of mobile data collection in financial institutions:
1. Using KoBoToolbox to Enhance Community Financial Resilience Programs in the Caribbean – Caribbean Development Bank
The Caribbean is a highly vulnerable region to a wide range of natural disasters, with hurricanes posing a significant and recurring threat with severe devastation.
The Caribbean Development Bank (CDB) has financed different social and economic programs in the face of disaster among its Borrowing Member Countries (BMCs).
Through these projects, the CDB aims to enhance the resilience of communities by helping them prepare for and adapt to natural disasters, economic shocks, and other disruptions.
CDB President Dr. Gene Leon articulated the bank’s reliance on accurate data for targeting and measuring interventions, saying “When planning for any situation, not just for an emergency, we know that we need access to reliable data.”
According to the Caribbean Development Bank (CDB), the Borrowing Member Countries Include:
- Bahamas
- Jamaica
- Barbados
- Antigua and Barbuda
- Haiti
- Guyana
- Saint Lucia
- Trinidad and Tobago
Project Details
- The Caribbean Development Bank (CDB) adopted KoBoToolBox in 2019, a powerful mobile data collection tool, to improve and streamline disaster recovery efforts across the Caribbean.
- The bank trained over 200 humanitarian aid workers and frontline disaster responders in collaboration with the Caribbean Disaster Emergency Management Agency (CDEMA).
- KoBoToolBox allowed for data-driven decision-making in the planning, resource allocation, implementation, and monitoring of crucial financial programs.
- These initiatives are part of the CDB’s Community Disaster Risk Reduction Fund (CDRRF), which operates in Jamaica, Belize, the British Virgin Islands, and Saint Vincent and the Grenadines.
Challenges Before the Adoption of Mobile Data Collection in CDB’s Relief Efforts in the Caribbean
- CDB relied on paper-based surveys for data collection, which were time-consuming and inefficient.
- There were delays in data collection and analysis of critical data, making it difficult to estimate the scale of damage or mobilize resources quickly.
A street in St. Michael, Barbados. St. Michael is one of eleven parishes of Barbados and hosts the headquarters of the Caribbean Development Bank. Picture/Courtesy
Key Benefits After the Adoption of Mobile Data Collection
- KoBoToolBox transformed the CDB’s data collection process by enabling faster, more efficient data capturing.
- KoBoToolBox’s offline capabilities proved essential in remote areas, allowing field teams to collect data even without internet access and upload it once connectivity was restored.
- KoBoToolBox mobile data collection provided features like GPS mapping and photo documentation, improving data accuracy.
Source
How the Caribbean Development Bank is using KoboToolbox to enhance community resilience in the Caribbean – KoBoToolBox.org
2. Using Open Data Kit (ODK) for Agent Network Management – Kazang Zambia
Kazang Zambia is a leading electronic micropayment processing company in Zambia.
Since its inception in 2007, the company has distributed numerous point-of-sale (PoS) devices that facilitate airtime purchases, and pay-as-you-go solar payment, among other utilities.
Also known as Spargris Zambia, Kazang Zambia operates money transfer services in the country by partnering with major Zambian mobile network operators such as Airtel, MTN, and Zamtel.
Kazang’s money transfer service also serves pay TV companies (MultiChoice and TopStar), insurance companies, and several banks.
The company, which distributes point-of-sale (PoS) terminals for various services, faced significant challenges with monitoring and supporting its large network of agents and direct sales representatives (DSRs).
Project Details
- Kazang Zambia adopted the Open Data Kit (ODK) in 2017 to enhance its agent network management.
- In partnership with the UN Capital Development Fund’s MM4P program, the payment processing company undertook a collaborative effort to enhance its operations.
- This partnership focused on addressing key challenges related to agent network training and management, while also developing a strategic roadmap for Kazang Zambia’s digital financial services.
- ODK is an open-source data collection tool that allows organizations to record data via mobile devices and track agent and DSR performance in real-time.
- The system was implemented by providing DSRs with smartphones pre-configured with the ODK Collect app, enabling them to submit data on agent visits, prospecting, and identification.
Challenges Before the Adoption of ODK in Kazang Zambia’s Agent Network Management
- The company lacked accurate data on agent locations and was unable to track performance effectively, leading to capital losses.
- Kazang struggled to monitor the performance of its DSRs, who were self-reporting their activities, leading to an overestimation of efforts and a lack of accountability.
A money transfer service kiosk along Cairo Road in Lusaka, Zambia. Picture/Courtesy
Key Benefits After the Adoption of ODK Mobile Data Collection
- ODK enabled Kazang to maintain accurate and up-to-date information on agent locations, leading to better decision-making regarding repossessions and support visits.
- Kazang could now track DSR performance through data collected via ODK, eliminating the previous issue of self-reported productivity.
- The digital system streamlined operations, allowing Kazang to respond quickly to underperforming agents and identify market gaps.
- With real-time data on agent activity and customer needs, Kazang was able to provide targeted support, resulting in increased sales and agent recruitment.
Source
Effective agent network management through a digital app – uncdf.org
3. Use of Drones for Damage Assessment and Claims Evaluation – United Services Automobile Association (USAA)
The United Services Automobile Association (USAA) is a well-known American financial services company that exclusively serves members of the U.S. military, veterans, and their families.
USAA provides insurance, banking, investment, and retirement products and services.
The company was founded in 1922 in San Antonio, Texas, by a group of U.S. Army officers, to provide affordable auto insurance to military officers who were considered high-risk by other insurers.
Project Details
- In 2014, USAA adopted drones to assess damage and evaluate claims in the aftermath of disasters.
- The company first tested the idea by seeking approval from the Federal Aviation Administration (FAA) to use unmanned aircraft systems (UAS) for surveying damaged areas before dispatching claims adjusters.
- The company intended to use small, lightweight drones to capture aerial imagery and assess the extent of disaster damage before sending personnel into potentially hazardous zones.
Challenges Before the Adoption of Drones in Assessing Insurance Claims
- Traditional damage assessment was slow and difficult, requiring on-site visits by insurance adjusters, especially after disasters like hurricanes.
- Traditional data collection methods led to slow claims evaluations, frustrating customers who needed quick assistance.
A drone covers a fire team in action as they battle a fire emergency. Drones are useful in damage assessment operations by insurance agencies. Picture/Courtesy
Key Benefits After the Adoption of Drones
- Drones enabled USAA to survey disaster sites quickly, collecting real-time data and providing more immediate assessments.
- Drones allowed USAA to reach areas that were previously difficult or unsafe for human assessors.
- Drones captured high-resolution images and videos, improving the accuracy of damage evaluations and ensuring that claims were processed based on reliable data.
Source
USAA Wants to Survey Disaster Site Damage With Drones – Carrier Management
4. Using Cresta AI to Improve Collections at a Major U.S. Bank
In American banking, bank collections involve pursuing outstanding debts, a process that frequently encounters client objections.
These objections are caused by various reasons, including financial hardship, disputes over the validity of the debt, or simply a lack of understanding of the collection process.
Different banks have developed playbooks that guide collectors on how to handle clients and deal with any obstacles arising in the recovery processes.
Project Details
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- A major bank in the United States adopted Cresta AI as part of an initiative to streamline its collections process.
- The bank struggled to effectively monitor its collection team’s adherence to the playbook in real-time client engagements.
- The bank chose to implement Cresta AI’s Agent Assist, Cresta Coach, and Cresta Insights to address the challenge.
- These AI tools provided real-time guidance for agents, ensuring that they adhered to the negotiation playbook, and enabled managers to monitor agent performance in real-time.
- Agent Assist guided agents through the negotiation flow with checklists, hints, and reminders to maintain compliance and achieve collection results.
- Cresta Coach gave managers real-time data on the performance of collecting agents, allowing them to provide timely and targeted coaching.
- Cresta Insights offered actionable data on agent performance and helped managers understand which behaviors were driving success.
Challenges Before the Adoption of AI in Bank Collections
- Collections agents were not consistently following the bank’s established negotiation playbook, which led to less effective collections outcomes.
- Managers had limited data on the day-to-day performance of agents.
- The lack of real-time oversight raised concerns about adherence to compliance requirements and regulatory guidelines.
A collage of bank debt collection rubber stamps. Picture/Courtesy
Key Benefits After the Adoption of AI Data Collection Solutions
- Managers were able to provide more effective coaching by seeing detailed insights into how agents were adhering to the playbook and where improvements were needed.
- There was a significant increase in negotiation playbook adherence.
- Real-time data provided by Cresta meant managers no longer had to listen to individual calls to evaluate agent performance, saving time and allowing them to focus on higher-value activities.
- Bank customers benefited from more efficient collection processes, as agents became more effective in their negotiations.
Source
How a major bank improved collections yield with Cresta – Cresta
Also read: Transforming M&E with Mobile Data Collection: From Paper Forms to Mobile Devices
5. Tata AIG Livestock Insurance App for Agent-Assisted Enrollment of Cattle – India
Cattle ownership is very prevalent in India, playing a significant role in the country’s economy and culture. Cattle provide income to rural Indian families through milk and agricultural labor.
In Hinduism, cattle are considered sacred, and their protection is deeply ingrained in the culture.
Tata AIG Insurance is an Indian general insurance company serving diverse sectors, including agriculture.
Project Details
- The leading Indian insurer developed a Livestock Insurance App in 2021 to facilitate the enrollment of cattle for insurance.
- The mobile app was designed for use by agents in rural areas, streamlining the process of insuring livestock and improving access to coverage for farmers and cattle owners.
- It integrated real-time data collection features, such as capturing photos and identifying cattle, which enabled immediate policy issuance.
- The Tata AIG Livestock Insurance App is available and can be downloaded from the Google Play Store.
Challenges Before the Adoption of Mobile Apps in Livestock Insurance Enrollment
- The traditional method of enrolling livestock in insurance policies was slow and cumbersome, often requiring paper forms and manual processing.
- Many rural farmers lacked access to proper insurance products due to geographical barriers and insufficient knowledge.
- The administrative costs of processing livestock insurance claims were high, limiting the efficiency of the system.
A screenshot of the Tata AIG Livestock Insurance Mobile App on Google Play Store.
Key Benefits After Adopting Mobile Data Collection
- The app significantly reduced the time taken for agent-assisted enrollment of cattle, speeding up the entire process and making coverage available to farmers more quickly.
- The app minimized human errors and eliminated the need for paper documentation. Real-time data capture ensured better quality control.
- The mobile app extended Tata AIG’s services to remote and rural areas, where farmers had limited access to financial services.
- The app helped in lowering the operational costs associated with livestock insurance.
Source
Mobile Phones and Microinsurance – The Center for Financial Regulation and Inclusion.
