Question

Predictive analytics is being more commonly used in many areas to assist in making rapid decisions, especially within a banking environment. What are the impacts of relying on this type of technology? What things could be missing by allowing this technology to control decisions?

When looking at e-commerce and the effect mobile communication has had on advertising, where have you seen advertising appear that surprises you? Is the usage of commercial advertising increasing or decreasing due to the broader implementation of mobile technology?

The method in which businesses interact with one another has changed drastically since the implementation of business to business payment systems. What considerations need to be taken when a business is going to choose a payment platform? When looking at security considerations, what is a key area assure is in place and why?

When examining the options for Internet providers in your area, how many providers do you have to choose from? What are the limitations for Internet access? Does the provider offer a modem or is one required to be purchase

Answer 1

First Answer

Predictive Analytics is a data driven approach which facilitates better decision making for current and future activities based on historical data. A lot of statistical and machine learning techniques assist in arriving at the right decision. The impact on banking sector:

• Customer Retention and Acquisition

Based on customer activity, this helps in optimizing the targeting efforts made towards them. For example the efforts made towards a loyal customer and a customer who is likely to leave would be different. Subsequently it also helps to identify that who are the potential customers who would be willing to avail our services and based on that acquisition efforts can be done. Further a customer's buying habits and account activity can also be used to predict the kind of offers and promotions that he/she might be interested in. Below are few of the major impacts:

• Fraud detection

With the ever increasing shift towards technology, the frauds in banking sectors have also become an area of big concern. Predictive analytics help is arriving at such issues by working on huge chunks of data to identify anomalies and subsequently prevent these frauds.

• Liquidity Planning

?Predictive analytics also help is arriving at liquidity requirement decisions based on the inflow and outflow patterns at banks and ATMs. Future liquidity requirement of customers and otherwise can easily be estimated based on this.

Disadvantage of using Predictive Analytics

Predictive algorithm fails to take into account the human aspects i.e. change is customer behavior, market shift, technology change and other key decision affecting aspects. Hence, controlling decisions using Predictive Analytics could prove myopic and a more holistic view is needed to make proper decisions.

Second Answer

The substantial increase in the use of smart phones has resulted in the rapid growth of mobile advertising. Today the advertising is not just confined to banner ads on applications, SMS/email promotions and QR codes. The most surprising and engaging form of mobile advertising in recent times is undoubtedly the usage of Augmented Reality and Virtual Reality to give the mobile users a virtual experience of a product or a service.

Third Answer

The prime considerations are:

1. Compatibility with your website/application and easy integration
2. Payment downtime: The terms and conditions need to be mutually agreed upon so that the due payments are processed in time to prevent issues with liquidity or working capital
3. Multiple currency and alternative payment methods: Need to gauge before hand whether your payment gateway is able to manage different currencies and also whether it is able to transact from payment methods like PayTM and others.
4. Security: While choosing a payment method, one must ensure whether sufficient security checks are present like the 3D secure pin and other authentications. Frauds have become a huge issue and hence there is no room for error as far as security as concerned.
5. Value for money: The transaction charges and other marginal charges should be analysed beforehand to identify whether the costs involved are not putting unwanted burden on the customer or our own company.

Fourth Answer

Generally 2 or 3 providers.

Limitations:

• Customization in data plans is often not available and have to choose from pre-defined plans.
• As the number of users on the network increases, often speeds are compromised and the providers are not really looking at increasing their bandwidths.

Well regarding the modem, the provider offers a free modem if a minimum plan of atleast 6 months and above is taken. Otherwise for shorter spans, one has to purchase a modem.