Telco eBook

MAXIMIZE ACTIVATIONS: THE POWER TO SAY YES MORE

You know the challenges in the telco industry, and even observers can see how fast the industry moves. So in this environment how do you manage fraud before a decision is made? How do you decrease your vulnerability to account defaults? And… reduce the risk for subscriber churn, even in an increasingly competitive market? You need decisioning superpowers. But, you don’t have to go it alone to find these powers… Do you have a partner that can empower you to do all of the above and continue to execute on daily business goals? Did you know the right partner can decrease credit losses by up to 40% 1 . So why are most telcos still constrained by legacy solutions? Though the industry has made efforts to modernize, incorporating advanced decisioning solutions into existing systems is still a challenge, exposing companies to revenue risk. Choosing the right decisioning solution will unlock your power to: • Maximize activations without increasing risk • Reduce losses with better fraud detection and prevention • Minimize churn to optimize customer lifetime value (CLV) Transform your risk decisioning and strike the perfect balance between revenue and risk across the entire subscriber lifecycle.

One click. Done. That’s the experience your subscribers crave when it comes to signing up for a new service. Much like any other service, they expect an easy, fast, and fully digital onboarding service. But quick and easy can often feel counterintuitive to maintaining a robust risk management strategy. To maximize activations, you have to walk a fine line between streamlining the onboarding and activation of new subscribers and maintaining your risk parameters. When creating subscriber-winning onboarding processes that maximize activations, there are two major areas of opportunity: • Actioning fraud risks faster • Expanding your lendable market SPOTTING FRAUD Comic villains used to be easy to recognize with their simple disguises. Today, they’ve gotten better at hiding, using complex tactics that take special skill to uncover. The same is true of telco fraudsters, many of whom have become geniuses when it comes to finding new victims. Fraud costs telcos an estimated $40 billion each year 2 . The industry has seen an increase in fraud - up 28%

from 2019 to 2021 3 - and with it, an increasing number of tactics employed by fraud rings, including synthetic ID fraud, subscription fraud, credit card fraud, and chargeback fraud. One study estimates that more than 200 types of telecom fraud exist 2 . But how do you catch fraudsters without hindering your activation growth goals? With a legacy decision engine, your process may be limited to basic fraud checks, leaving you to only automatically approve low- risk profiles who you can be sure are real. More complex cases are handled manually, which slows down approvals and can give your activation numbers a significant hit - half of fraud professionals in a recent survey said that more than 50% of applications were abandoned due to a review process that was too long 4 . To recapture those lost applications, invest in technology that can: • Run complex KYC and fraud checks as part of your decisioning processes • Increase the speed of checks to offer real-time decisions • Use alternative data to create more robust views of risk

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