Customer Story

Global Quantitative Trading Firm

In this Customer Story, RIWI provided a unique view on the point of sale market to help our client understand Brazil's changing technological landscape.

The Challenge

Brazil is an economy on the brink of digital transformation, but as one of the countries most affected by COVID-19, this progress has slowed. While major retailers in Brazil have the resources to adjust to the pandemic’s challenges quickly, small-medium sized enterprises (SME) are fighting to stay afloat. As a result, point of sale (POS) terminals, a fast-growing and increasingly accessible technology in Brazil, see a decline in transactions, especially in their highest growth segment, SMEs. RIWI’s client, a global quantitative trading and equity research firm, sought to understand POS terminal technology’s changing landscape in Brazil to recommend investment strategy for their client base. In assessing the performance of these POS terminal service providers, critical KPIs like churn and adoption rates are either released quarterly by the terminal manufacturers themselves or derived from sets of often outdated transaction data. The challenge is that these critical data are often backward-looking and static, making it difficult to derive accurate and actionable insights.

The Solution

RIWI applied its proprietary technology platform to randomly engage Web-users across Brazil, accessing a fully representative sample of the population. From this large sample, RIWI asked a series of filtering questions to target SME business owners.
Next, RIWI segmented these SME owners by the size and nature of their business to create a more granular and actionable data set. These segments, ranging from streetside coconut stands to small retail chains, varied greatly in their optimism towards reopening and adopting POS terminals.
Using RIWI's interactive dashboard, the client's equity research teams could assess all major Brazilian POS terminal providers' real-time market share and predict changes based on user sentiment and intent to switch. The client then aligned the data with their fundamental research to derive more informed investment theses across their industry coverage and website.

The Impact

RIWI’s global quantitative trading firm client published a series of equity research reports analyzing the relative performance of POS terminal providers and were able to engage their institutional investor client base with unique insights. RIWI’s data from over 3,800 Brazilian business owners were used to produce a unique view on the POS market in combination with fundamental and quantitative research to determine buy/sell/hold ratings for three major companies.