Accenture plcACN recently announced that it has formed a strategic alliance with the world's first real-time mobile money management service, Moven. The agreement aims at providing next-generation digital banking products to Moven customers in a smart and innovative way. The alliance will also help banks in improving customer engagement through digital platforms.
Under the agreement, Accenture will get the rights to use Moven's mobile-based financial management software. The Moven application helps people in budgeting by providing them instant notifications after every transaction, either made through cards or mobile payment tools. This way users can keep a track of their spending and not stray from their set savings target.
With Moven's innovative financial wellness app, strength in offering real-time mobile money management solutions and Accenture's expertise in the banking industry, the alliance will focus on providing end-to-end banking solutions for digital transformation. Besides enhancing operational efficiency, this will help banks to gain customer loyalty and optimize digital sales in a cost-effective manner.
The collaboration will assist users in managing their expenditure and staying focused on their personal finance in the most simple and convenient way. Moreover, the bank will get an insight into its customers' spending behavior, which will aid it in offering personalized services.
Technology has changed the way people do business and consequently there is scope for increasing efficiencies and lowering costs by automating and streamlining these routine functions. The alliance seeks to do just that by combining Accenture's operations expertise with Moven's leading mobile-centric banking app.
This affiliation between Accenture and Moven highlights the fact that banks these days are open to integrating the latest innovative technology in their operations to keep their existing client base satisfied and attract new customers.
Accenture's latest step into the digital banking space will prove to be beneficial, given the increasing demand for digital solutions. Moreover, the feature provided by the Moven app will be the first of its kind worldwide. This will give Accenture a competitive edge over its local peers.
Though the financial benefits of the partnership are hard to gauge as of now, it no doubt strengthens Accenture's capabilities in the banking vertical.
However, we remain slightly cautious due to its modest third-quarter fiscal 2015 outlook. Also, increasing competition from Cognizant Technology Solutions Corp. CTSH and International Business Machines Corporation IBM and a sluggish economic recovery may dampen growth.
Accenture carries a Zacks Rank #3 (Hold). A better-ranked stock in the technology sector is Cirrus Logic Inc. CRUS , sporting a Zacks Rank #1 (Strong Buy).
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