43 initiatives and an estimated 570 million pesos for a department store’s financial services

For a Mexican department store retailer, financial services were a side offering with room to grow. NTT DATA analyzed products, processes, operations and systems and designed a digital transformation plan with 43 initiatives. The plan carries an estimated impact of about 570 million Mexican pesos on EBITDA.
Estimated EBITDA impact: ~570M MXN
Estimated effect of the 43 initiatives on operating profit.
Initiatives executed: 43
Spread across products, channels, fraud and systems.
Systems: Scalable
Built to support the growth of the business.
Fraud cost: Targeted
Fraud reduction measures included in the plan.
Customer making payment in retail store
Retail Financial Services Transformation Plan
Financial services with a clear plan to grow margin
Objectives
Analyze the financial services products, services, processes, operations and systems to define a digital transformation plan.
Opportunity
Financial services become a structured source of margin, with new contact channels and lower fraud costs.
Financial services below their potential

The retailer offered financial services to its customers. Few channels, fraud costs and old systems held back their growth.

Key Challenges
1: Contact channels not developed. Customers reached financial services through a short list of channels.
2: Fraud costs. Fraud losses cut into the margin of the business.
Modern office with empty workstations.
3: Legacy systems. The existing systems limited how far the business scaled.
People shopping for furniture in store.
4: No specialization. The business had not identified where to specialize its products and services.
Solution
Analyze, plan, build, execute

NTT DATA analyzed products, services, processes and systems to find improvement opportunities, then designed a strategic plan with new contact channels, fraud cost reduction and scalable systems.

check icon
Information gathering

The team collected information on products, services, processes, operations and systems.

check icon
Improvement areas

NTT DATA identified the areas to improve and the opportunities to specialize.

check icon
Transformation plan

The team designed the plan and split the work into 43 initiatives.

check icon
Systems and execution

NTT DATA developed scalable systems and implemented the initiatives.

Impact
Financial services with a measurable margin target

The 43 initiatives carry an estimated impact of about 570 million Mexican pesos on EBITDA. Products and services are optimized, scalable systems are in place, and the plan includes new contact channels and fraud cost reduction.

Drag