The mobile revolution
Consumers covet the latest technology, but the cost of being an early adopter is prohibitive. That's where we come in. Our device finance solution allows your customers to spread the cost of their device purchase while you achieve sustainable revenue collections and cash flow. It's a win-win.
Regulation, disrupted
In December 2021 new mobile and device finance regulations were introduced in the UK. This meant mobile providers had to seperate device finance from the airtime contract.
Ofcom also set out rules around greater transparency and fairness for the customer. These included the right to be informed before contracts ended and the ability to switch providers with just a text message.
Devices that could require finance include:
Mobile phones
Laptops and tablets
Ear pods such as airpods
Smartwatches
Wearable tech e.g; AI glasses
The premium price for being the first in line means the device cost is often too expensive as a one-off purchase. Providers have had to adapt to ensure their solutions and platforms meet the new regulatory requirements.
The market opportunity
As a result of regulation and market forces, customers may choose to spread the cost of device purchases. Mobile providers now require Loan Management Software (LMS), to ensure device finance is separated from airtime or SIM-only plans, completely transforming the customer experience.
The legacy challenge
The cost to develop, deploy or maintain new or existing Loan Management Systems (LMS) in-house is challenging. Either it's too costly, time-consuming or in-house development teams lack the required capacity or skillset.
Additionally, some providers have realised that legacy systems are not easy to flex or scale to meet changing requirements.
The complete solution
Target and our parent Tech Mahindra have extensive experience in device financing and the wider financial services market. Combined with our FCA regulation and deep domain expertise, we’re perfectly positioned to help you meet regulatory change and customer needs.
As part of our Business Process Outsourcing offering (BPO), Target can provide hosted, managed administration service to the end customer. By combining our expert servicing with our proprietary loan administration system, you can respond rapidly to the changing landscape.
The features
Managed hosted Loan Management System (LMS)
Underpinned by Targets deep expertise in consumer lending
Scalability and resource
To support increased account volumes and significant peaks in demand (e.g. new device releases)
Highly flexible and adaptable
To meet regional requirements and to help navigate the FCA and associated regulations in this market
Business Process Outsourcing (BPO) operations expertise
To support overflow or providing a second line specialist loan servicing operation
Capility and experience
To take over full loan servicing administration
Adaptive and agile
Our LMS is highly configurable to meet regulatory demands
Benefits leveraged
Ensure regular cash flow and collection revenues
Achieve economies of scale through outsourcing
Realise benefits of own payment plan without 3rd party commision costs
Outsourcing reduces capital costs and IT run overheads
Solutions ensure regulatory compliance
LMS provides seamless integration with 3rd party systems
Enhanced customer choice and improved customer experience (CX)
Our five stage approach
Purchase
Provide customers with a seamless customer journey for entering into a Device Finance agreement, regardless of channel.
Service
Deliver a fully integrated customer journey for the ongoing management of Device Finance agreements in a fully compliant manner.
Upgrade
We provide a seamless customer journey for the upgrading of a device, taking into account all Device Financing Scenarios, regardless of channel.
Customer Care
Our team of highly skilled service colleagues manage and resolves customer complaints in accordance with regulatory timeframes
Retention or contract exit
To ensure that all outstanding Device Finance Agreements are fulfilled upon leaving and to maintain highest level of customer experience.
Ready to transform your device finance?
Get in touch today to find out how!
