Device Financing Challenges, Solutions for Telcos

Introduction

It is safe to say that mobile is a necessity in today’s world. Smartphones are one of the most used digital devices. However, it is a challenge to several people in the world to buy this necessity. As it is still unaffordable for a large number of people.

Financing companies are making smartphones and other digital devices affordable to people. However, people are doubtful about the concept of device financing. Buyers are confused whether to buy the phones or get them financed. Financiers are facing some serious challenges.

Overview 

Device financing allows individuals to buy electronic devices such as smartphones and laptops by making monthly payments over a period of time. It reduces the burden of paying the whole amount at once, interest is included if it’s applicable and once the complete payment is done the ownership of the phone is given to the consumer. People might have to make a down payment, and credit checks, they can also pay off the amount early as well.

Challenges faced by Telecom Companies

When it comes to device financing, telecoms faces number of challenges and especially when it comes to smartphones. Some of these challenges are mentioned below-

• Unsuccessful EMI Payments 
• Customers ghosting due to lack of centralized credit scoring
• Physically recovering the defaulted devices
• Shifting of customers to alternative sim network providers

How does Datacultr help?

Datacultr knows about the problems that telecom companies deal with when they offer financing for smartphones. Therefore they makes device financing easy for telcos by-

• Regular payment reminders – Datacultr makes sure you remember to pay on time by sending simple and organized payment reminders on the devices.

• Device Locking – If the customer has defaulted the payment, datacultr can lock the device from its dashboard which will eliminate the need for a recovery agent. 
• Offline mode device locking – Locking of devices is also available in offline mode as well, which means even if the consumer defaults the payment and tries to go offline, the device can still be accessed and can be blocked. 

This is beneficial for both the phone companies and for the people using their services. Users get to use the latest and coolest models of mobile phones with fast 4G or 5G networks, that too without having to pay a lot at the start. Whereas on the other side, the telco companies can keep their customers happy and make money from device financing without losing too much profit. This is how datacultr is helping telco industries by making device financing safer. 

Fraud Detection and Prevention For Telcos

Some of the common frauds and their prevention methods for telecommunications companies (telcos) are as follows-

Subscription Fraud-

Fraudsters pretend to be someone else to get a new phone line or subscription service. They might use stolen information to open an account.

Prevention- Telcos can do identity verification, such as asking for photo IDs and permanent 

addresses, to make sure the person signing up is really who they say they are.

SIM Card Cloning-

Fraud people copy your SIM card information and use it to make calls or access your data without your knowledge.

Prevention- Telcos can use secure SIM card technology and regularly monitor unusual call patterns to detect cloning attempts.

Roaming Fraud-

Fraudsters use stolen or fake SIM cards to make expensive calls while abroad, leaving the real customer with a big bill.

Prevention- Telcos can track unusual roaming patterns, monitor accounts for large sudden increases in roaming, and send alerts to customers about their roaming usage.

International Revenue Share Fraud (IRSF)-

Criminals exploit international revenue-sharing agreements to generate traffic on premium-rate services, with the Telco footing the bill.

Prevention- Telcos can monitor international traffic, detect abnormal patterns, and use filters to block calls to high-risk destinations.

Wangiri Fraud-

Fraudsters make short calls to your number and hang up, enticing you to call back to an expensive international number.

Prevention- Telcos can block or restrict calls to high-cost destinations, educate customers about this type of fraud, and monitor call patterns.

Key advantages of Telecom Device Financing

Telco device financing offers an array of compelling benefits catering to your convenience, budget, and technological aspirations by breaking down the cost of devices into manageable installments.

• Affordability

Telco device financing enables customers to acquire expensive devices without paying the full upfront cost. Instead, the total cost is divided into manageable monthly installments, making premium devices more financially accessible.

• Access to Latest Technology

As technology evolves rapidly, new and improved devices are released frequently. With device financing, customers can upgrade to the latest models more frequently, ensuring they always have access to cutting-edge features and functionalities.

• No Large Initial Payment

Purchasing devices outright often requires a significant upfront payment. Device financing eliminates this hefty initial expense, making it easier for customers to obtain the devices they want without straining their budgets.

• Flexible Payment Plans 

Telco device financing offers flexibility in terms of payment plans. Customers can choose the duration of the financing contract and select a monthly payment that aligns with their financial situation, providing greater convenience and control.

• Bundled Services

Many telcos bundle additional services with device financing, such as data plans, insurance coverage, and extended warranties. These bundled offerings enhance the overall value proposition for customers.

• Credit Building

Consistent and on-time payments for device financing can contribute positively to a customer’s credit history. This is especially beneficial for those who want to establish or improve their credit score.

Consumers should pay attention to the terms and conditions, including interest rates and associated fees (if any) while considering device financing. Benefits of telco device financing are significant , however, before making an informed decision, consumers should ensure that the financing plan goes well with the individual’s needs and preferences.

Closing Thoughts

For empowering telcos innovation and enhancing customer experiences is essential. Adapting to technological changes plays a crucial role.Collaboration with technology providers and other industries fosters innovation. Maintaining ethical practices and regulatory compliance ensures trust. By combining these strategies, telcos can navigate the evolving landscape, secure their relevance, and achieve lasting success.