Digital Lifescapes

Banks that adopt Artificial Intelligence (AI) to enable better customer success and business experience are moving towards a Banking-as-a-Platform (BaaP) operating model to fuel new digital revenue growth. The main strategic goal of a Platform banking business model is to become involved in strategic Fintech partnerships which can improve their product offering for both retail and corporate clients. Each platform is largely self-contained in producing business and technology outcomes, and autonomous in prioritizing its work to meet growth goals and clearly defined areas of specialization. BaaP Market Development According to the latest worldwide market study by Juniper Research , global revenue from BaaP services will increase to $49 billion globally in 2028 -- that's up from $4 billion in 2023. BaaP can help traditional banks regain their competitive edge against NeoBanks. Through collaboration with innovative vendors, traditional banks can offer new services from partners, includ...

Healthcare sector innovation tends to progress at a slow pace, due to a number of historical factors that inhibit agility. For example, the Smart Home healthcare market continues to grow and evolve, but the scale of the opportunity remains under-penetrated. Last year, new smart home healthcare shipment and service revenues grew 25 percent to reach $22.9 billion worldwide, but that growth rate may be hard to sustain, despite the potential for further growth. According to the latest worldwide market study by ABI Research, new smart home healthcare shipment and service revenues will reach $26.5 billion in 2023 -- that's up by 15 percent from 2022. Smart Home Healthcare Market Development Smart home healthcare, encompassing connected home care, remote patient monitoring, and social robotics, can improve the health and care of the most vulnerable while reducing staffing and other costs. It also represents an opportunity for a host of players from smart home vendors and beyond to extend ...

Mobile Money is the most basic form of Mobile Financial Services (MFS) in emerging markets, which is comprised of a variety of offerings. It's a good model, due to the lack of infrastructure that supports access to services for the un-banked population of numerous nations. Where building and sustaining traditional financial institutions is very costly, landline telecom and mobile network operators offer a near-ubiquitous and reliable alternative to banking establishments. The concept is reliant on mobile handsets, taking the form of simple domestic money transfers, or micro-finance services that involve risk decision elements, such as lending and insurance. Mobile Money Market Development According to the latest market study by Juniper Research, the total value of mobile money transactions in emerging markets will reach $2 trillion by 2027 -- that's an increase of over $500 billion from 2023. Growing by 33 percent, the market is being driven by the transition to Payments-as-a-P...

Ongoing investment in business technology will remain on track, despite concerns about the global economic outlook which continues to evolve in 2022. Enterprise CIOs and CTOs are focused on operational profitability and digital business growth goals that are enabled by strategic IT initiatives. Global spending on the Digital Transformation (DX) of business practices, products, and organizations is forecast to reach $1.8 trillion in 2022 -- that's an increase of 17.6 percent over 2021, according to the latest market study by International Data Corporation (IDC). Many anticipated DX investments will sustain this pace of growth throughout the 2021-2025 forecast period, with a five-year compound annual growth rate (CAGR) of 16.6 percent. Digital Transformation Global Market Development "IDC expects to see aggressive DX technology investment growth in 2022 following a minor slowdown during the pandemic period," said Craig Simpson, senior research manager at IDC . "As orga...

Historically, the traditional insurance sector has been reluctant to change established methods. However, the relationship between insurance companies and technology vendors has evolved, as emerging Insurtech offerings disrupt the legacy insurer business model. The overall insurance market is experiencing significant upheaval, as new technology-enabled solutions impact the prior status quo. As an example, the use of price comparison websites is commonplace and other forms of customer-facing online services are widespread. However, the internal processes of loss notification, claims management and underwriting have not changed much from those used by insurers many decades ago. Therefore, savvy Insurtech vendors can help to revolutionize outmoded methods and introduce new ideas to the insurance marketplace. Insurtech Market Development That said, traditional insurers are now becoming increasingly involved within the Insurtech space, through direct investments and strategic partne...

The legacy insurance sector has experienced disruptive pressures from new technologies, start-up Insurtech competitors and changing customer demands. Within this environment, organic growth hasn't provided business transformation. Thus, insurance companies have relied on mergers and acquisitions (M&A) to leapfrog traditional competitors. That said, the number of M&As in the industry has grown by 1,096 percent since 1985, and 128 percent in the past 10 years. However, business technology innovation and IT-enabled automation will likely drive the majority of new growth via digital transformation strategies. Insurtech Automation Market Development  Robotic Process Automation (RPA) is a software solution which is designed to complete activities originally performed by humans. RPA is the future of most repetitive tasks that do not require cognitive capabilities, allowing employees to focus on things that deliver greater value. Moreover, RPA has proved to be much more a...

Ever since the advent of computer use by established banking and insurance organizations in the early 1950s, financial services has been a sector that generates an enormous amount of customer transaction data. That's why they've adopted analytics tools for big data use cases, and it's why they've been one of the first sectors to pilot the deployment and applications of artificial intelligence (AI) systems. AI Chatbot Market Development According to the latest worldwide market study by Juniper Research, the operational cost savings from using chatbots within banking will reach $7.3 billion globally by 2023 -- that's up from an estimated $209 million savings in 2019. This tremendous productivity improvement represents 862 million hours potentially saved for banking business operations by 2023 -- that's equivalent to nearly half a million working years. According to the new research, chatbots can now reduce excessive operational costs in financial service...

The drivers of fintech adoption in the developed world are different to those of the developing world. The last financial crisis resulted in a mistrust of legacy financial institutions, which has fueled the growing consumer appetite for products and services from innovative new providers. Fintech platform revenues derived from supporting the insurance industry (Insurtech) will reach almost $235 billion globally by 2021, that's up by 34 percent y-o-y from an estimated $175 billion this year, according to the latest market study by Juniper Research. Growth will be driven by a combination of factors, including: Machine Learning investments enabling insurance providers to personalise products; Insurers deploying mobile apps to improve their customer experience; Investments in blockchain technologies to underpin smart contracts. Fintech Market Development Trends The new worldwide market study uncovered that the value chain within the insurance market is transforming r...

Across the globe, the mobile phone is one of the most important technology advancements for developing nations, as an enabler of economic growth. In fact, many of these emerging countries have already seen a rapid adoption of mobile remittance. Very basic money transfer services can help fuel a local economy. According to the World Bank, there are 80 countries where less than 50 percent of the adult population has a bank account. Mobile money transfers can provide financial inclusion for those un-banked and under-banked citizens. The total transaction value of Mobile Financial Services in emerging markets  -- including domestic money transfers, deposits on loans, insurance products, and savings accounts -- will approach $500 billion in 2021, that's up from an estimated $198 billion in 2016. Mobile Money Service Market Development Juniper Research discovered that by introducing insurance offerings, mobile network operators had the opportunity to substantially reduce custo...

Sensors in automobiles that produce data for analysis by insurance companies are a compelling use case for Internet of Things (IoT) technologies. The number of Insurance Telematics policies in force on the European market already reached 5.3 million in the fourth quarter of 2015, according to the latest worldwide market study by Berg Insight. Increasing at a compound annual growth rate (CAGR) of 37.2 percent, that nascent market is expected to reach 25.8 million by 2020. In North America, the number of insurance telematics policies in force is expected to grow at a CAGR of 45.8 percent from 6.3 million in 4Q15 to reach 42.1 million by 2020. Moreover, the European insurance telematics market is largely dominated by hardwired aftermarket black boxes, while self-install automotive on-board diagnostic (OBD) devices instead represent the vast majority of all active policies in North America. Automotive Telematics Market Development Several major U.S. providers of usage-based insuran...

The automotive industry is transforming rapidly as it embraces new paradigms -- such as active safety, on-board automation and car sharing services. The onset of the Internet of Everything (IoE) has also created new applications for sensor data that can be applied toward the development of new business models. As an example, the Usage Based Insurance (UBI) subscriber base broke through the 10 million member barrier, mainly driven by the ongoing adoption of these offerings within the U.S. and Italy. While it's been a turning point for the market, many obstacles remain. According to the latest market study by ABI Research, fundamental UBI impediments include privacy concerns, low awareness and perceived value, lack of scalability of on-board diagnostics (OBD) approaches and unclear future business models. Market Development Challenges UBI first-mover profitability gains -- based on the self-selection of low-risk drivers -- will ultimately not be sustainable. The auto insuranc...

Micro-credit, insurance, and simple saving accounts are already making a very positive impact on millions of the world's poor, while also creating new opportunities for innovative mobile network service providers in emerging markets. Both micro-finance providers, and mobile carriers, are driving a surge in financial inclusion for the un-banked populace in developing nations, through the provision of sophisticated mobile finance services, according to the latest market study by Juniper Research. Juniper now estimates that micro-finance user numbers in developing regions -- including Africa & India -- will triple from 94 million in 2015 to 283 million by 2020. They found that mobile savings accounts -- such as Safaricom’s M-Shwari and Tigo Tanzania -- had already gained mass adoption in their respective markets, with the mobile network operators benefiting both from reduced churn and from the opportunity to upsell additional content such as micro-insurance and loans. Inde...

As the Internet of Things (IoT) evolves into the Internet of Everything (IoE) there will be a trickle-down effect that impacts a variety of related industries and market sectors. According to the latest market study by ABI Research, global insurance telematics subscriptions are expected to grow at a CAGR of 81 percent from 5.5 million at the end of 2013 to 107 million in 2018. "With Progressive’s Snapshot having attracted more than 1 million drivers in the U.S. and Octo Telematics already counting close to 1.3 million UBI customers -- mainly in Italy -- insurance telematics is now entering the mainstream market, at least in certain countries," said Dominique Bonte, VP and practice director at ABI Research . The emergence of smartphone-based solutions, the gender ruling in the EU, and growing awareness of insurers to move to a more proactive safety, preventive, and service/CRM based approach improving the customer experience and loyalty will be strong drivers for growth ...