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IDC FutureScape: Worldwide Financial Services 2020 Predictions

Published by IDC Product code 345045
Published Content info 22 Pages
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IDC FutureScape: Worldwide Financial Services 2020 Predictions
Published: October 31, 2019 Content info: 22 Pages
Description

This IDC Financial Insights study developed seven drivers that both CIOs and their business partners should consider over the next five years. The list is not meant to be exhaustive nor is it meant to be final. IDC Financial Insights publishes a new list of drivers annually, and many are evolutionary. Last year's drivers were instrumental in developing this list, just as this year's drivers will be critical to the formulation of next year's drivers.Of the seven drivers, it became clear that some drivers had further reach within financial services than others. These drivers are more far reaching and thus are likely to have the most complexity and cost in implementation. Key drivers listed in the Summary of External Drivers section are in order based on the number of times they were cited by the global analyst team as impacting the prediction. At the end of the study (see the External Drivers: Detail section), a more in-depth analysis of the drivers is provided.According to Marc DeCastro, research director, IDC Financial Insights, "As disruption becomes the new normal, incumbent financial service firms are finding that they need to do more than just keep up with those challenging the status quo. Customers' expectations continue to rise as the implementation of innovation is being accelerated by things such as artificial intelligence, the Internet of Things, next-generation security, and robotics. Now, more than ever, financial institutions must embrace transformation while balancing risk, security, and compliance requirements."

Table of Contents
Product Code: US44313719

IDC FutureScape Figure

Executive Summary

IDC FutureScape Predictions

  • Summary of External Drivers
  • Predictions: Impact on Technology Buyers
    • Prediction 1: By 2021, 50% of Insurers Worldwide Will Work with at Least Three Insurtechs, as the Industry Adapts to an Evolving Connected Ecosystem
      • Associated Drivers
      • IT Impact
      • Business Impact
      • Guidance
    • Prediction 2: By 2022, 10% of the World's Adults Will Register for a Blockchain-Based Self-Sovereign Identity, Creating an Expanding Market of 485 Million People Who Seek to Own and Control Their Digital Identity
      • Associated Drivers
      • IT Impact
      • Business Impact
      • Guidance
    • Prediction 3: By the End of 2020, 15% of In-Branch Transactions Will Be Prestaged on Digital Platforms and Fulfilled at ATMs, Drive Ups, Tellers, or Lockers at the Branch as Physical and Digital Experiences Merge
      • Associated Drivers
      • IT Impact
      • Business Impact
      • Guidance
    • Prediction 4: By 2025, 40% of Banks Will Partner with Fintech Disruptors Through Cloud Ecosystems to Offer Real-Time Payment Overlay Products Addressing Business and Cross-Border Challenges
      • Associated Drivers
      • IT Impact
      • Business Impact
      • Guidance
    • Prediction 5: By the End of 2022, 40% of Insurers Will Automate Claims Processes with Artificial Intelligence Technologies and Conversational Interfaces to Improve Speed of Response, Efficiency, and Personalization
      • Associated Drivers
      • IT Impact
      • Business Impact
      • Guidance
    • Prediction 6: In 2020, the Penetration of Microinsurance Will Grow by More than 20%, Fueled by Uptake of Mobile Payments, Insurtech Innovation, and the Resulting Lower Transaction Costs for Insurers
      • Associated Drivers
      • IT Impact
      • Business Impact
      • Guidance
    • Prediction 7: By 2022, 50% of Global Tier 1 Banks Will Use Quantum Computing to Review Portfolio Allocations, Algorithmic Trading, and Pricing Strategies, Exponentially Improving the Ability to Respond to the Market
      • Associated Drivers
      • IT Impact
      • Business Impact
      • Guidance
    • Prediction 8: By 2024, 80% of Banks Will Be Purchasing and Integrating Fintech Solutions from Cloud Marketplaces
      • Associated Drivers
      • IT Impact
      • Business Impact
      • Guidance
    • Prediction 9: As Traditional Corporate Banking Business Models Are Coming Under Pressure, New XaaS Models Will Grow to 4% of Total Corporate Banking Revenue by 2023
      • Associated Drivers
      • IT Impact
      • Business Impact
      • Guidance
    • Prediction 10: By 2024, 20% of Banks Will Expand Lending to Nontraditional Consumer and Small Business Borrowers by Using Machine Learning, Alternative Data, and Fintech Partnerships
      • Associated Drivers
      • IT Impact
      • Business Impact
      • Guidance

Advice for Technology Buyers

External Drivers: Detail

  • Rising Customer Expectations: More Convenience, Customization, and Control
    • Description
    • Context
  • The Age of Innovation: Driving the Future Enterprise
    • Description
    • Context
  • The Platform Economy: Competing at Hyperscale
    • Description
    • Context
  • Accelerated Disruption: Navigating Business Challenges as Volatility Intensifies
    • Description
    • Context
  • Intelligence Everywhere: AI's Opportunity and Implications
    • Description
    • Context
  • Crisis of Digital Trust: Escalating Threats Mandates Strategic Responses
    • Description
    • Context
  • The Future of Work: Agile, Augmented, Borderless, and Reconfigurable
    • Description
    • Context

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