Lawrence Ferrer —Contributed picture
CIS Bayad Middle, Inc. is the pioneer and market chief within the outsourced payments cost assortment trade. It’s extra popularly often called Bayad, a subsidiary of Manila Electrical Co. (Meralco), a member of the Manuel V. Pangilinan group of corporations. With over 13 million transactions passing by means of its system each month and a 59-percent market penetration price, Bayad has established itself as probably the most trusted manufacturers in payments cost, powering greater than 400,000 cost contact factors, in addition to one of many main internet and cell functions within the nation.
Lawrence Ferrer, president and CEO of Bayad—a cost skilled who not too long ago received the Grasp Innovator award on the 4th Mansmith Innovation Awards—shares with us the significance of innovation in firm operations.
Query: In 2001, Good Cash was launched three years forward of the competitors. You have been closely concerned within the formulation and launch of the primary digital load (eload) providers within the Philippines. What vital classes did you be taught from the Good Cash initiative?
Reply: My profession started in banking in the course of the late ‘90s, but it surely was my time at Good Communications in 2000 that actually outlined my skilled journey. I used to be privileged to be a part of the pioneering workforce that developed the world’s first cell pockets. This groundbreaking innovation garnered world recognition and laid the inspiration for the cell cost panorama we see right this moment. It was an thrilling period (telco wars) marked by fierce competitors and fast technological developments.
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If I have been to spotlight a single achievement, it might undoubtedly be the digital load product (Good eload). Its launch despatched shockwaves by means of the market, propelling Good considerably forward of the competitors. Because the product lead, I used to be tasked with growing a revolutionary distribution mannequin to exchange the inefficient bodily load playing cards. The problem was clear: scale back distribution prices by half, increase our attain and preserve common income per consumer (ARPU).
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To expedite growth, we leveraged our present Good Cash platform and built-in it with our pay as you go system to introduce an over-the-air top-up service. By using inner assets, we considerably accelerated the method in comparison with outsourcing or exploring exterior options. On the distribution aspect, we zeroed in on the sari-sari shops, given their pervasiveness and accessibility to our buyer base. To incentivize these retailers, we reallocated the client bonus load as a fee, with administration approval. Lastly, persuading clients to undertake the brand new load mannequin with out compromising income was a vital problem. By deeply understanding the sari-sari retailer market, I launched smaller, extra inexpensive airtime denominations, shifting from a month-to-month P300 to a P30 three-day possibility (sachet or tingi-tingi mannequin). This technique not solely protected our ARPU but additionally expanded our buyer base by catering to these with restricted budgets.
This section of my profession instilled in me the significance of deep buyer understanding, figuring out their challenges and leveraging present know-how as a software to ship related options.
Q: Bayad has, through the years, developed from being obtainable in a number of Meralco branches to banks, to opening your personal retail branches, then going closely into the franchising mannequin (the place Bayad has been acknowledged as an impressive franchisor) and finally taking the total digital route, creating a completely totally different enterprise mannequin. Immediately, retail shops are only a minority of your whole enterprise. What is going to occur to your franchise retailer idea? And why ought to a retailer franchisee proceed to be one?
A: Bayad’s early success was deeply intertwined with the expansion of Filipino small and medium enterprises that embraced our enterprise mannequin. Because the market developed and digital funds gained prominence, we anticipated these shifts and proactively invested in constructing our digital infrastructure. This included growing proprietary channels and integrating with exterior platforms like cell wallets, banks and remittance providers.
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To make sure that our franchise companions remained aggressive on this new panorama, we applied two key methods. First, we modernized our operations by changing our legacy system with a real-time platform, enhancing effectivity and transaction success. Second, we expanded our service choices past invoice funds to incorporate monetary providers like airtime loading, money administration and insurance coverage. This diversification not solely drove elevated foot visitors to our accomplice shops but additionally solidified the enduring relevance of bodily contact factors within the evolving funds ecosystem.
Q: How do you know that the digital transformation was the appropriate factor to do? Did you may have a Plan B in case your assumptions failed?
A: To navigate the complexities of digital transformation efficiently, we prioritized data-driven insights and a deep understanding of buyer wants. Our plans have been fastidiously constructed round enhancing the client expertise, considering each our clients and companions’ views. An intensive cost-benefit evaluation was important in figuring out the viability of every initiative, guaranteeing that the potential return justified the funding and timeline.
Recognizing the inherent dangers in any transformation, we established sturdy contingency plans, together with rollback choices, to safeguard in opposition to unexpected challenges.
Q: How did you deal with conditions the place a choice needed to be made and key constituents may not just like the potential final result?
A: Actuality is that regardless of cautious planning, many outcomes typically fall wanting expectations. I skilled it a number of occasions, corresponding to product/service rollbacks and advertising and marketing promotions that didn’t generate sufficient incremental quantity.
In these conditions, it can be crucial for the workforce to ascertain clear communication traces. For instance, in product rollouts/cutovers, the core workforce is accessible by means of group chats, together with decision-makers. If the manufacturing is compromised as a result of bugs or errors, they cascade and motion steps are taken instantly.
Lastly, at occasions we make choices that aren’t well-liked however wanted. At Bayad, we create steering committees, composed of key executives, that type the mission’s governing physique, offering high-level oversight and help. They make key choices as a gaggle. With this apply, it mitigates arguments and offers sooner turnaround time.
Q: With a big enterprise mannequin shift, how did you inspire your workforce to simply accept the change?
A: As their CEO, it’s my accountability to inspire, encourage and rally the group, notably in main adjustments we face. I typically comply with these 5 steps to maintain the workforce united and prepared for challenges.
1. Communication: Each member of the workforce must be made conscious of the plan and the explanation why we’re doing this. To make sure they hear it straight from me, I maintain common conferences from mancom (administration committee), “kapihan” (espresso periods) with employees and common city corridor [meetings]. I consider in open communication and accessibility. My door is at all times open to any member of the group.
2. Co-creation: Bayad has undergone a metamorphosis to change into a complete fintech firm. This strategic shift has accelerated our tempo of product innovation and launch. One of many issues I instituted is a weekly Undertaking Steerco (steering committee) conferences. This allowed me to listen to from every workforce about their tasks and what they want. Extra importantly, I get a very good grasp of the challenges on the bottom and to remind them that “nobody has a monopoly of fine concepts.” We promote a supportive house the place people can specific their ideas and concepts freely.
3. I consider in fostering a tradition of co-ownership. Having spent most of my profession in product growth, I perceive the intrinsic rewards of making one thing from scratch. I’m dedicated to empowering my workforce to really feel the identical sense of achievement and pleasure of their work.
4. Compensation (and recognition): By acknowledging and appreciating their achievements, we will considerably influence worker morale, motivation and general engagement. As a apply, we throw mini-celebrations for sure group achievements, on prime of efficiency incentives.
Lastly, consistency is paramount. We prioritize ongoing worker help and growth. To make sure this dedication, I commonly remind our govt workforce to remain attuned to their groups’ wants and escalate vital points to the administration committee for well timed decision. On the finish of the day, our staff are our most precious asset and are the driving pressure behind innovation, buyer satisfaction and general enterprise development.
Q: What has been the results of the innovation initiatives you may have applied thus far? Given one other probability, what would you may have modified?
A: Having devoted over 20 years to this subject, I’ve had the privilege of witnessing first-hand the transformative energy of innovation. From small-scale breakthroughs to large-scale impacts affecting tens of tens of millions of Filipinos, from Good Cash, Digital Load, Pasaload, Good Padala, PayMaya UBP’s Fast Loans and Bayad’s Actual Time Fee Processing. Whereas I do have a number of regrets, corresponding to not having a few of these improvements patented, I nonetheless rely myself lucky to be a part of this unbelievable journey and having made a distinction. —Contributed
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Josiah Go is the chair and chief innovation strategist of Mansmith and Fielders, and the co-founder (with Chiqui Escareal-Go) of the Mansmith Innovation Awards. Go to www.mansmithinnovation.com for particulars.
