Cash is not the enemy – Stickiness of Cash Part 1

Why is cash so sticky in our society? Many of us have argued for the need to build convenience, security and ubiquity for digital payments. And then cash would start receding. No debate there. But we forget that as individuals our brains are wired to go back to cues that are triggered at the sub-conscious level. We are not always the rational individuals economists would have us to be. Our decisions are influenced more by emotions. CASH IS NOT THE ENEMY To appeal at the emotional level, we need either a villain or a hero. While bankers and payment professionals

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Unit Economics

Unit Economics in the times of Auction Marketing Models

Unit Economics is all we hear these days in the consumer technology world. Unfortunately for many start-ups seeking venture funds, this is the biggest hurdle they need to cross to build a strong case for their business. What is the concept of Unit Economics I will not go into the definition and relevance of Unit Economics. That’s well documented here and here. Or just Google it. Lets refer to Microeconomics 101 for our discussion – Marginal Costs(MC) and Marginal Revenue(MR). We all know that its a healthy sign if Marginal Revenues are higher than Marginal costs. And this delta (MR-MC)

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3 tips for New To Bank Acquisitions – Digital Banking Toolkit

Why Online Acquisitions Acquiring New To Bank (NTB) customers is a key agenda for most Digital Heads at Banks. Its only logical that online acquisition budgets are getting bigger, given the following: Consumers are spending more and more time online. Digital is the best channel to start a dialogue Digital channels are tracked exhaustively. You can measure the return on each dollar spent. Digital channels allow data to flow at higher speeds. This could translate into better context, targeted products, straight-through-processing, upfront checking of applications etc etc. Tablets have provided the ideal form-factor to do an assisted digital sourcing, as

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Play to your strengths – Digital Banking Toolkit

Nadal is the king of clay. Given a choice of surface, I guess he would choose clay 9 out of 10. We all get it – one should play to one’s own strength. Its obvious in sports, but most of us fail to apply the same rule(s) in business. As most banks embrace digital, this is one rule we should not forget. Look at the bigger PSU banks in India – it’s fair to assume that they have a big list of areas to focus on when it comes to going digital: Channel migration of customers onto internet banking and

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Digital success needs a matured partnership mindset

I believe that smart matured digital players will need to develop deepĀ  partnerships. Let me explain why. With the growing consumption of digital media, there is considerable noise that a consumer is now exposed to. This would mean that the brands have a fast shrinking window of opportunity where they have their prospects attention. Most brands do understand this and hence have started investing heavily in better designs and more meaningful content. But when it comes to acquisitions, it seems that this underlying assumption is usually forgotten. Maybe the acquisition teams are overwhelmed by the amount of digital data they

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9 challenges in digitizing the sales force

Very few of us embrace change.Most of us would try our best to avoid any change in the status quo. Especially if it drastically impacts the way we work. Hence any initiative to convert an offline banking/insurance sales channel into a digitally-enabled online one, is sure to face a lot of resistance from the existing teams and one must be prepared to weather these strong head-winds. While there is no single solution which you could adopt, but a deeper understanding of what causes this overall resistance, would help you understand what needs to be done in your specific instance.  

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