MRL Posnet, a new entrant in the credit card and prepaid services has built an innovative risk analysis solution that pulls relevant information from Microsoft Dynamics® CRM and uses Microsoft Business Intelligence tools and proprietary logic and algorithms. Not only does it reduces fraud disputes dramatically... bringing it down from INR 7,00,000 (U.S.$ 15,500) approximately in the first six months to below 0.10 percent of all transactions. Since launching the Dynamics CRM and the risk analysis application the company has lost only INR 53 (U.S.$ 1.17) in over 6 months, with transactions of approximately INR 50 lakh (U.S.$ 112,000) each month.
|Transactions are captured systematically and therefore protect our risk exposure significantly. This solution has minimized our write offs to under 0.04 to 0.05 percent. This is lower than the industry average of about 0.10 percent. What’s more, we have lost only INR 53 (U.S.$ 1.17) since implementing the solution in October 2010.|
Head of Risk Containment and Business Strategy
MRL Posnet, established in 2009, offers a unique Point of Sales (PoS) terminal that not only accepts credit and debit card transactions but also dispenses value-added services such as prepaid mobile and satellite TV recharge. In the near future, these terminals will also provide other services such as utility bills payment, issue train tickets, buy movie and bus tickets amongst others.
This makes the terminal a new source of income for small merchants such as grocery stores in neighborhood markets, increasing their revenues. Karur Vysya Bank, Karnataka Bank, Corporation Bank and A.P. Mahesh Cooperative Bank collaborate with MRL Posnet to offer PoS services to their customers. This would otherwise not be able to offer due to lack of infrastructure.
MRL Posnet is present in over 10 major urban areas, as well as, in some tier two and three cities in India. Growing rapidly, the company aims to offer its terminals across the country within a year’s time.
It decided to launch PoS terminals only after creating an effective technology environment. With plans to add as many as 10,000 merchants in the first year; and a target of 100,000 merchants by year 5 this was a necessity.
To manage all merchant relationships, it was important to start operations with a robust Customer Relationship Management (CRM) solution in place. This solution would be responsible for managing all relationship, tracking transactions and payouts to the merchants. The solutions would broaden access to customer information and make it available across the organization even with employee churn. Solution
Keeping in mind the organization’s business, the CRM solution was a clear identified need. In addition, a key criterion was flexibility “We needed a flexible framework because as the business would grow there will new, additional solutions to meet fresh business challenges; and hence the flexibility to customize and integrate the solution with other applications would be key to our success,” comments Kishore Kothapalli, Managing Director, MRL Posnet.
With this in mind, MRL Posnet evaluated several solutions including Sugar CRM, developing in-house solution and finally chose Microsoft Dynamics® CRM. “While we were looking for a product that came closer to mimicking our sales cycle, we were also cost conscious. We wanted to minimize the customization or implementation cost. Microsoft Dynamics CRM was the answer,” explains Venkatarama K, Chief information Officer, MRL Posnet.CRM Implementation
MRL Posnet deployed Microsoft Dynamics CRM, for users including helpdesk team, sales organization, relationship managers, market analysis group and senior management team. Prathap Pingali, Chief Marketing Officer says: “We use Microsoft Dynamics CRM for managing the complete sales cycle, storing customer contacts and updating every interaction. The business solution also manages all financial data flows required by our business.”
“Within 5 minutes of a transaction through a ‘switch’ connected to the Visa and MasterCard network the data is available in our CRM solutions. Once the data is available in the CRM solution, the helpdesk, accounting team, daily settlement and reconciliation teams have access to the information to process payments and respond to merchant queries,” he explains further.
The solution ensures the organization has a single merchant view that captures data including merchant demographics, transactions on credit cards and value added services. It also provides a summary of transactions and interaction history. Custom notes and alerts are set with regard to account servicing management and even risk management.
Within the first six months of launch, MRL Posnet posted disputes worth INR 700,000 (U.S. $ 15,500) approximately from transactions of about INR 8 crore (U.S.$ 1.7 million). A new entrant in the market could not afford such losses stemming from disputes. In addition, this was higher than the existing industry standard. Hence, the next stage of technology development needed to start very quickly to deliver a robust risk analysis tool.The Risk Analysis Application
Building on its existing infrastructure of Microsoft SQL Server 2008 and Microsoft Dynamics CRM, MRL Posnet began developing a risk analysis tool (Analytica). The goal was to create a tool that would analyze all transactions for the day real time based on proprietary logic and algorithms to identify potentially risky transactions before merchants are paid-out the next morning.
The solution built primarily on Microsoft platform leveraging Microsoft SQL Server and its technologies and developed using Microsoft .NET Framework 4.0. The user interface developed using C# while MRL Posnet also used solutions from Telerik, a company that specializes in software develop solutions built on Microsoft .NET.
Analytica uses sophisticated algorithms to analyze customers’ transactions and identify suspicious payments and is completely integrated into Dynamics CRM.
Analytica flags risky transactions each day and makes recommendations to delay payment until a charge slip has been received, to corroborate the legitimacy of the transaction. All actions on the flagged transactions are managed through Dynamics CRM. For example, Dynamics CRM allows the organization to track whether the receipt is collected and authorizes payment post verification.
|Within 5 minutes of a transaction through a ‘switch’ connected to the Visa and MasterCard network the data is available in our CRM solutions. Once the data is available in the CRM solution, the helpdesk, accounting team, daily settlement and reconciliation teams have access to the information to process payments and respond to merchant queries.|
Chief Marketing Officer
Safeguards against Fraudulent Transactions
Analytica allows MRL Posnet to verify records to take a weighted decision on payments to merchants. With the cycle time of only 24 hours to make the payment, it is important to have a systematic and timely response to risky transactions. “Transactions are captured systematically and therefore protect our risk exposure significantly. This solution has minimized our write offs to under 0.04 - .05 percent,” comments Sunil Rongala, Head of Risk Containment and Business Strategy, MRL Posnet. “This is lower than the industry average of about .10 percent. What’s more, we have lost only INR 53 (U.S.$ 1.17) since implementing the solution in October 2010,” he adds. Easy to Analyze Reports Enhance Business Management
The market analysis group has access to significant reporting capabilities, which allows it to publish business reports relevant to business users, sales team, helpdesk and the finance organization. “We can simply slice, dice and drill down into different dimensions of the business to arrive at important insights. Based on these, we can decide which markets to penetrate first, which merchants are delivering higher number of transactions or look at data by merchant and transaction value. It helps us plan and target our sales and marketing efforts,” explains Harsh Madhav Dar, Advisor to MRL Posnet.Significantly Increases Employee Productivity
With the Dynamics CRM based information available with the helpdesk, a 6-member team is able to field 8,000 calls per month with spare capacity to meet our growing number of merchants.
A 40-person field sales organization is able to service over 4,000 merchants effectively. “With Dynamics CRM solution supporting the sales organization, we expect each sales person to handle 20 percent more merchants, bringing in significant productivity gains,” explains Prathap Pingali.Microsoft Dynamics
Microsoft Dynamics is a line of integrated, adaptable business management solutions that enables you and your people to make business decisions with greater confidence. Microsoft Dynamics works like familiar Microsoft software such as Microsoft Office, which means less of a learning curve for your people, so they can get up and running quickly and focus on what’s most important. And because it is from Microsoft, it easily works with the systems that your company already has implemented. By automating and streamlining financial, customer relationship, and supply chain processes, Microsoft Dynamics brings together people, processes, and technologies, increasing the productivity and effectiveness of your business, and helping you drive business success.
For more information about Microsoft Dynamics, go to:
www.microsoft.com/dynamics For More Information
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For more information about MRL Posnet products and services, call (91) (40) 2355 4001 or visit the Web site at: http://www.mrlposnet.in © 2003 Microsoft Corporation. All rights reserved. This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.