C5i Case Studies Using statistical models to understand a decline in remittance transactions

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	Using statistical models to understand a decline in remittance transactions C5i

Using statistical models to understand a decline in remittance transactions

C5i

Technology Category	Analytics & Modeling - Predictive Analytics
Applicable Industries	Finance & Insurance
Applicable Functions	Business Operation
Use Cases	Predictive Quality Analytics
Services	Data Science Services
Challenge	The client, a leading money exchange company, experienced a decline in remittance transactions from Country X to Country Y. They identified several factors responsible for the decrease in transaction volume and sought the expertise of Blueocean Market Intelligence to investigate and develop a plan to address these challenges. The client needed to understand the transactional and customer trends by key variables such as age, emirate, and send agent. They also wanted to measure the impact of exchange rate, margin percentage, and competitor pricing on transactional volume. Read More
About Customer	The customer is a leading money exchange company operating in the financial services industry. They specialize in facilitating remittance transactions between different countries. Recently, they experienced a decline in transaction volume from Country X to Country Y, which prompted them to seek solutions to understand and address this issue. The company is committed to understanding its customer trends and transactional patterns to improve its services and maintain its leading position in the market. Read More
Solution	Blueocean Market Intelligence approached the problem by first conducting an exploratory analysis to understand the transactional and customer trends by key variables such as age, emirate, and send agent. They then created statistical models to estimate the impact of margin percentage on transactional volume and measure the impact of exchange rate and competitor pricing on transactional volume. Through this comprehensive analysis, Blueocean was able to identify the key issues impacting the transaction volumes and provide actionable insights to the client. Read More Log in to view content
Contents

Technology Category

Analytics & Modeling - Predictive Analytics

Applicable Industries

Finance & Insurance

Applicable Functions

Business Operation

Use Cases

Predictive Quality Analytics

Services

Data Science Services

Challenge

The client, a leading money exchange company, experienced a decline in remittance transactions from Country X to Country Y. They identified several factors responsible for the decrease in transaction volume and sought the expertise of Blueocean Market Intelligence to investigate and develop a plan to address these challenges. The client needed to understand the transactional and customer trends by key variables such as age, emirate, and send agent. They also wanted to measure the impact of exchange rate, margin percentage, and competitor pricing on transactional volume.

About Customer

The customer is a leading money exchange company operating in the financial services industry. They specialize in facilitating remittance transactions between different countries. Recently, they experienced a decline in transaction volume from Country X to Country Y, which prompted them to seek solutions to understand and address this issue. The company is committed to understanding its customer trends and transactional patterns to improve its services and maintain its leading position in the market.

Solution

Blueocean Market Intelligence approached the problem by first conducting an exploratory analysis to understand the transactional and customer trends by key variables such as age, emirate, and send agent. They then created statistical models to estimate the impact of margin percentage on transactional volume and measure the impact of exchange rate and competitor pricing on transactional volume. Through this comprehensive analysis, Blueocean was able to identify the key issues impacting the transaction volumes and provide actionable insights to the client.

Impact #1	Blueocean Market Intelligence was able to help the client understand which key issues had the most impact on the transaction volumes, including total margin percentage and send agent margin percentage.
Impact #2	The analysis showed the need for a loyalty program as a significant percentage of customers did not make any transfer in the subsequent twelve months after making a transfer.
Impact #3	The statistical models identified agents where the drop in volume was relatively higher, thus bringing this to the client’s immediate attention for further action.

Impact #1

Blueocean Market Intelligence was able to help the client understand which key issues had the most impact on the transaction volumes, including total margin percentage and send agent margin percentage.

Impact #2

The analysis showed the need for a loyalty program as a significant percentage of customers did not make any transfer in the subsequent twelve months after making a transfer.

Impact #3

The statistical models identified agents where the drop in volume was relatively higher, thus bringing this to the client’s immediate attention for further action.

Benefit #1	67% of the customers who made a transfer in six months had not made any transfer in the next twelve months

Benefit #1

67% of the customers who made a transfer in six months had not made any transfer in the next twelve months

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Overview

Using statistical models to understand a decline in remittance transactions

Operational Impact

Quantitative Benefit