04 Dec FingerMotion- Leveraging Big Data To Foster Loyalty
FingerMotion Inc. (OTCQB: FNGR), a burgeoning technology Company offering mobile payment and recharge solutions platforms, announced that its subsidiary Shanghai JiuGe Information Technology Co., Ltd. has entered into a strategic cooperation agreement with China Mobile Financial Technology Co., Ltd., a subsidiary of China Mobile (NYSE: CHL). The agreement is to develop a unique business-model that fosters customer loyalty by bringing together conventional loyalty point redemption business and an e-commerce platform.
Martin Shen, CEO of FingerMotion Inc., opined
“This latest agreement continues to represent an evolution of our business plan. We are leveraging our core competency which is essentially the monetization of large user bases, and employing it in new applications. In this case, the application is the loyalty marketplace, which is undergoing a rapid digital transformation and our company is actually driving its evolution. Users need choice, and by providing them with intelligent options, supported by our learning algorithms, we are more likely to connect with the user on a higher level. We are very fortunate to be partnered with China Mobile because our access to a trusted mobile wallet takes the struggle out of developing this loyalty economy. Our team has the resources it needs to take on all the major mobile wallet platforms.”
The Company’s subsidiary was actively pursuing a deal with China Mobile Financial Technology Co., Ltd given its extensive financial services industry experience and an impressive subscriber base of nearly 900 million. The focus is on creating an unparalleled mobile wallet program that leverages on the financial expertise of China Mobile and FingerMotion’s ability to use Big Data analytics and algorithms to attract customers by offering a greater degree of choice and connect.
“Point Mall”, the U.S equivalent of a loyalty rewards program, has approximately 600 million participants who accumulate “points” that can be exchanged in lieu of products and services. The challenge is to offer fresh content through strategic partnerships with other brands and offer an extensive rewards and redemption catalogue. The scope of the market is immense, with Hebao, the largest player in the integrated mobile payment & processing solution market clocking more than 2.1 trillion yuan (approximately US$300 billion) annually.
FingerMotion Inc. (OTCQB: FNGR)
Market Cap: $270.66M; Current Share Price: 8.00 USD
Data by YCharts
The COVID-19 Pandemic has brought a shift in the consumption and purchase habits of consumers around the globe. Owing to widespread lockdown and safety concerns, more customers are choosing the online retail and e-commerce route to procure essentials goods and services. This provides a great opportunity for companies to attract new customers and retain existing ones by creating targeted communication. This can be achieved by using cutting-edge technology like artificial intelligence and machine learning to collect, analyze and interpret consumer data to create a more personalized and meaningful experience.
The use of advanced data analytics can not only predict consumer behavior but also help influence it. The insights thus obtained can provide invaluable in differentiating products and services from those of competitors. Loyalty programs offer a great way retention tool by rewarding customers for their loyalty. The emergence of omnichannel loyalty programs further enhances customer experience by offering a unifying and improved experience. However, stringent government regulations that govern data security and privacy and restrictions on marketing communications may hamper the growth in the market.
A report by Fortune Business Insights predicts that the global Loyalty management market will be worth over USD 10.02 billion by 2027, growing at a CAGR of 19.9 percent from USD 2.47 billion in 2019. The growth of e-commerce sector, a rapid increase in card usage and access to internet will have a profound impact on the scope of loyalty programs in the Asia-Pacific region. The loyalty management market in the region which was valued at an estimated USD 592.3 million in 2018 is projected to grow at a CAGR of 25.1%, to reach USD 2.3 billion by 2024 as per Reportlinker. According to the same report, China has over 413.3 million online shoppers who contributed to a turnover of USD 681.9 billion in 2017. Currently only 61 percent of the consumers participate in retail loyalty programs, which provides ample opportunities for capturing the market.
FingerMotion offers multiple platforms namely Mobile Data Service, Mobile payment and recharge platform and Big Data Insights, in addition to branding and marketing. The Company aims to establish itself as Digital Information Champion by leveraging on its expertise in mobile data platform, mobile recharge and the Big Data insights.
Shanghai JiuGe Information Technology Co., Ltd, its wholly owned subsidiary in China is a key link to its ambition to make the most of the growth in the e-commerce and online retail businesses, driven by the rising access to the internet. Currently the Company caters to over 1 billion Chinese users and intends to extend its services to other regions as well.
In 2018, its subsidiary landed contracts with China United Network Communications Group Co., Ltd. and China Mobile Communications Corporation, for nine provinces/municipalities, for distribution of mobile data for businesses and corporations. Furthermore the Company also launched and commercialized mobile payment and recharge services for businesses of China Unicom. In 2019, JiuGe Technology acquired Beijing XunLian TianXia Technology Co. and made its foray into the mass SMS text message service. The Company has a license from the Ministry of Industry and Information Technology to operate SMS and MMS business in PRC.
In addition, the company has a contract with China Unicom’s Yunnan subsidiary, to build an electronic sales platform that can sell various goods and services from China Unicom, including mobile telephones, mobile telephone service, broadband data services, terminals, “smart” devices and related financial insurance.
The subsidiary has also entered into an agreement with China Mobile and China Unicom to help extend their subscriber base and market their new 5G products in the most cost-effective manner.
As per the Company’s Fiscal 2020 financial results, FingerMotion had cash and cash equivalents of $419,707 as compared to cash and cash equivalents of $102,919 at February 29, 2020.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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