Analysis of JazzCash strategy using Quantitative Methods

Abstract

JazzCash is one of the major players in one of Pakistan’s emerging and nascent industries – the fintech and financial services industry of Pakistan. Being a sister concern of the PMCL group, which is owned by VEON, headquartered in Amsterdam, JazzCash has established itself within the Pakistan fintech and financial services landscape by offering financial services to the masses. The fintech domain in Pakistan is quite nascent and it is an industry which is still establishing itself. Financial inclusion in Pakistan is quite low with traditional banking serving the higher societal classes and the lower societal class being subjected to little or no alternatives. This is the reason that cash is king in this region and majority of the population remains unbanked. This, in turn, leads to difficulty in implementing and ensuring taxation policies and seriously impacts the revenue collection of the Pakistani government. To bridge this gap, fintech players like JazzCash have made a name for themselves in the market and aim to serve customers which traditional banking cannot accommodate.

This report aims to examine the fintech landscape of Pakistan with a specific focus on JazzCash and identify the currently prevalent use cases within the fintech domain and their implication on the organization strategy and revenue ambitions. It studies consumer behavior within the fintech universe and explores different use cases of the fintech domain. For the purpose of analysis, the quantitative method selected is Cluster Analysis performed on open-source software Jupyter using Python language which sifts through all data points gathered from customers over a period of 4 months and classifies each type of behavior in to similar lookalike clusters. Once the clusters are formed, they are analyzed and distinct user behaviors are found in the clusters which are further analyzed on demographic, psychographic and GSM variables to create a unique customer profile. Moreover, after identifying the key clusters and creating a unique customer profile according to distinct behaviors, the report aims to compare the organizational strategy with the behavior of the user base and suggests corrective actions required to capitalize on the vast fintech landscape of Pakistan in accordance with the organizational objectives.

Lastly, the report aims to analyze, qualitatively, the currently implemented strategy and initiatives and suggest corrective actions to capitalize on the vast opportunity which exists within the fintech domain. The report explores more use cases which can be incorporated to ensure a profitable business model along with value addition for the end user.