Perspectives: New Growth

For some, Insurance might seem a monolithic industry, but for the ones keeping a close eye on it- Insurance is revamping itself faster than ever!
From days when underwriting a simple policy would take weeks and months, to now when it can be done in seconds with a simple ‘selfie’ - there seem to be no bounds in the future of this industry.

We are on the cusp of a revolution within financial services that will have far-reaching ramifications for the +1 billion unbanked, current models of financial intermediation across entities and borders, and ultimately the very nature of how end-consumers understand financial health. As this understanding held by customers evolves, so too must the operations, services, and visions of providers.

Innovation has been in vogue for over a decade but the need to be innovative has never been felt as strongly as today. As businesses are learning to thrive under the lasting effects of the pandemic, they need to reinvent products, services and customer experiences to satiate emerging patterns of demand. To truly capitalize on the opportunity, business leaders need to look beyond internal capabilities and embrace a networked model of innovation to drive positive impact.

Real time payment (RTP) transactions are likely to exceed 300B by 2023, growing at 40% per year worldwide. Financial Institutions need to quickly find their own space in this ecosystem. They must redefine their value proposition and rethink their business models around this phenomenon.

Competition is an important facet of business world, and the process of seeking growth is a continuous one. One should never stop trying to win new customers or retain existing ones. After all, competitors are always trying to win your customers over, especially in mature markets.

The rising aspirations of consumers combined with the limited access to, and opaque nature of traditional financing solutions, has given rise to innovative products for underserved segments. BNPL is one such solution that offers short-term financing to users with the ability to pay in definite installments with low to no interest rates.

The payments industry has been experiencing explosive growth across Latin America over the past few years: cash usage has decreased ~20% as consumers pivoted towards payment products that are well integrated into the financial ecosystem.

The payments industry has been experiencing explosive growth across Latin America over the past few years: cash usage has decreased ~20% as consumers pivoted towards payment products that are well integrated into the financial ecosystem.

The near-to-medium term horizon is still riddled with uncertainty – of inflation, a potential recession, supply chain disruptions, new COVID variants, the future of crypto, and political conflicts.

The business-to-business (B2B) payments ecosystem, long characterized by complex, manual processes, has reached an inflection point. The proliferation of digital payment methods is fundamentally reshaping how businesses and consumers manage their finances.

As younger generations start to play for competition and skill development, there is a rise in payment flows, volumes, and subsequent opportunities arising out of the same. Financial institutions are not only presented with the opportunity to monetize on gamers but also target younger Gen Z and Millennial consumers to upsell and cross-sell their existing products.

Gen Z is not merely a younger version of millennials; they are poised to disrupt all aspects of the economy. Companies must therefore adapt in time to cater to the preferences and expectations. ​

As the scope of ESG considerations continues to broaden, firms are allocating increased resources to their ESG strategies. This investment is driven by the need to assess shifting stakeholder expectations, evolving regulatory requirements, and the unique needs in different markets and geographies.

Real-time payments are increasingly recognized as a critical component of modern financial systems, offering speed and convenience in an interconnected digital world. As we venture into the future, the recent launch of the Federal Reserve's instant payment service, FedNow, stands at the forefront of a payment revolution in the US.

Significant shifts are underway in the cross-border payments sector, across the demand-side and supply-side. Consumer expectations from domestic payments (instant, fully traceable, risk-free, etc.) are being applied to the more complex cross-border space. Businesses that capitalize on these shifts stand to shape the future of the industry.

In the current environment, streamlining the bottom line is no longer enough for US insurers. To find the next wave of growth, insurers must rethink lead generation, agent interactions, and the way they service customers.

The use of gamification has proliferated across all industries, with retail, entertainment and education leading the charge. Apps like Duo Lingo, Kahoot, Fitbit, Starbucks etc., are all some of the most prevalent examples.

The economic climate is becoming increasingly uncertain with cautionary signals of recession, along with inflationary pressure, fluctuating currencies, and uncontrollable impact of geopolitical events. Firms need to proactively take this opportunity to refocus their future investments on high value, high potential business lines.

As COVID is rapidly changing the factors that influence attrition and the customer profiles that are at risk, retention programs should not only be proactive and holistic, but also quick to deploy.

Digital deflation is the most effective way for businesses to manage through today’s environment of high inflation, currency fluctuations, potential recession, and labor shortages. Effective sourcing and third-party technology resource usage is key to realizing digital deflation.

Data production in healthcare occurs in different volumes, velocities, and formats by multiple sources – EHR, diagnostic, imaging, claims, billing, medical devices to name a few.

While advice has always remained at the core of wealth management, finding the balance between human and digital advice has become vital to remain relevant in the forthcoming years. Wealth managers need to rethink their offerings and be creative in their products to keep the new entrants hooked.

70% of all planned transformation initiatives fail to deliver tangible business value and 84% of organizations fail at tech transformations in particular.

70% of all planned transformation initiatives fail to deliver tangible business value and 84% of organizations fail at tech transformations in particular.

As these technologies become more accessible to the wider public, AR and VR are expected to grow into a $125 billion market by 2025.

Healthcare systems in the US are facing substantial financial challenges. Since the Covid-19 pandemic, factors such as labor shortages, supply chain interruptions, and macro-economic pressures have all compounded the already mounting cost pressures. Over the same period, government reimbursement increases have not been adequate: while the economy-wide inflation in the US grew by 12.4% between 2021 and 2023, Medicare reimbursements for hospital inpatient care only grew by 5.2%.

Healthcare systems in the US are facing substantial financial challenges. Since the Covid-19 pandemic, factors such as labor shortages, supply chain interruptions, and macro-economic pressures have all compounded the already mounting cost pressures. Over the same period, government reimbursement increases have not been adequate: while the economy-wide inflation in the US grew by 12.4% between 2021 and 2023, Medicare reimbursements for hospital inpatient care only grew by 5.2%.

Healthcare systems in the US are facing substantial financial challenges. Since the Covid-19 pandemic, factors such as labor shortages, supply chain interruptions, and macro-economic pressures have all compounded the already mounting cost pressures. Over the same period, government reimbursement increases have not been adequate: while the economy-wide inflation in the US grew by 12.4% between 2021 and 2023, Medicare reimbursements for hospital inpatient care only grew by 5.2%.