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Technology Briefing, August 2019

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Cambridge Research Project Proposes New Economic Indicators for 21st Century Progress

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– Report advises a switch from a focus on GDP to ‘wealth accounting’

– Preliminary research shows multiple perspectives needed for effective carbon accounting

– Initial findings show stronger economies require higher levels of social trust

LONDON, Aug. 5, 2019 /Editorial/ — As the consequences of climate change, social tensions and high levels of inequality are increasingly evident, the Bennett Institute for Public Policy at the University of Cambridge, led by Professor Diane Coyle, has published an initial report on how to improve economic measurement in order to guide effective economic policymaking.

The report recommends focusing on an alternative measurement framework based on the “wealth economy” rather than just GDP: wealth is determined by the access to a range of economic assets people need to fulfil their economic potential and the long-term capacity of the economy to deliver sustainable growth and improving living standards.

The forward-looking element of this new economic framework makes it a better indicator of sustainability in terms of the economy and society as well as the natural environment than annual output or GDP.

This ambitious framework requires measurement of access to six types of economic assets that add up to what is known as comprehensive wealth of the nation.

Physical assets and produced capital, including access to infrastructure and to new technologies
Net financial capital
Natural capital, the resources and services provided by nature
Intangible assets such as intellectual property and data
Human capital, the accumulated skills and the physical and mental health of individuals
Social and institutional capital
Commenting on the report, Professor Diane Coyle said: “21st century progress cannot be measured with 20th century statistics. We chose to focus on the wealth economy as a guide to whether or not there is any increase in prosperity because it measures the long-term capacity of an economy to deliver sustained growth and improved living standards. Without measuring changes in these assets there is little prospect of delivering sustainability, in terms of the economy and society as well as the natural environment.”

The Cambridge researchers have started with a focus on natural and social capital, as the first steps to developing a comprehensive framework.

Natural capital, which provides the building blocks of all the other forms of capital, is generally in decline. This poses grave risks for wellbeing. GDP growth derived from depleting natural capital, which includes water, air, soil, minerals and renewable capital such as forests or marine ecosystems which are prone to collapse, deprives future generations of wellbeing, which is why it is important to measure natural capital.

Covering a first set of research results, the report provides an initial view of the direction of the research, with early indications of findings, including how we could better report on carbon emissions.

Mathew Agarwala, research leader on the project, comments: “Carbon emissions degrade natural capital. This new wealth economy approach forces us to think about adjusting national balance sheets according to the impacts of climate change, alongside contributions to it. Preliminary results indicate that constructing accounts from multiple perspectives – each attributing emissions to a different point on the global supply chain – is the only way to have a comprehensive understanding of the carbon footprints of nations.”

Social capital is often referred to as the glue that holds societies together. It encompasses personal relationships, civic engagements and social networks. Without it there can be little or no economic growth. The report argues that trust in fellow citizens and institutions as well as the quality of governance are the result and the cause of productivity growth and higher reported wellbeing.

As a fundamental element of social capital, the formation of trust relies on cumulative experiences of trustworthy interactions with other people or organisations or broader social settings such as shared ethical views, cultural norms and rules.

The research team have performed statistical analyses on European data exploring trust in societies and how this correlates with economies. This showed that overall, trust is highest for people in Scandinavia and lowest for those in Mediterranean and Eastern countries, that it generally increases with income, and that building trust may help boost productivity.

The Wealth Economy project seeks to ultimately augment GDP with a small dashboard recording access to key assets and have been working with many of the biggest environmental economic initiatives from the United Kingdom to the United Nations.

Dimitri Zenghelis, Wealth Economy project leader, said: “Statistics are the lens through which we observe the economy: policymakers, businesses and individuals change their behaviour in response to the picture they see through that lens. Our statistical tools need to be fit for capturing value in an uncertain and rapidly changing world where decisions today will lock in our ability to prosper in the future.”

The Wealth Economy project is supported by LetterOne.

The report has been written by:

Diane Coyle – Bennett Professor of Public Policy, University of Cambridge
Dimitri Zenghelis – Project Leader
Matthew Agarwala – Research Leader
Marco Felici – Research Assistant
Julia Wdowin – Research Assistant
Saite Lu – Research Assistant

For more information:

PDF: https://mma.prnewswire.com/media/956353/Measuring_wealth_delivering_prosperity.pdf

SOURCE Cambridge research project

Corporate Treasurers Look at New FX Risk Mitigation Strategies: To minimize Foreign Exchange losses, executives are reviewing new formulas to balance Cash Flow at Risk (CFaR) and Earnings at Risk (EaR)

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Corporate treasurers are exploring the use of more complex risk management techniques to better balance liquidity and earning risk and minimize foreign exchange losses, according to Bloomberg survey findings announced today.

More than 100 corporate treasurers, financial analysts and risk managers responded to the poll, which found that Cash Flow at Risk (CFaR) and Earnings at Risk (EaR) have gained recognition as the latest risk management solution. Results show that 34% of respondents already use CFaR or value at risk (VAR), 29% are considering using it, and only 8% have never heard of it. The poll also revealed that 64% of respondents said they need to improve or are considering improvements to their company’s current hedging policy.

However, when asked what obstacles stood in the way of adopting a CFaR-based hedging policy, 66% of respondents cited the difficulties of explaining the policy internally and to the board. Another obstacle is technology: 41% of respondents cited that their company is reluctant to change its current technology. The discussion also surrounded the importance of key performance indicators (KPIs).

“For cash flow and earnings volatility, companies are shifting away from the outdated percentage hedging model to a risk management perspective, as they are not able to tie their old strategies to the KPIs the board is demanding,” said Mark Lewis, Corporate Treasury Product Manager at Bloomberg.

Explaining the policy internally and updating technology were not the only challenges respondents cited in implementing CFaR & EaR. Respondents were also concerned that such a policy would be too complex (29%), that it could be too costly to implement and run (26%), or that it would not provide sufficient benefit (13%).

“We have been working closely with clients to address the very real challenges of explaining CFaR/EaR to their boards and of updating their legacy technology systems. Bloomberg makes tools available that can be used by clients to backtest the change to CFaR/EaR and make it easier to explain how this technique proves out over time. Furthermore, our tools can be used end-to-end or plugged into an existing workflow, making implementation seamless,” Lewis added.

The poll was conducted during Bloomberg’s recent online webinar “The Benefits of CFaR and EaR for Corporate Risk Management”, to discuss how Cash Flow at Risk (CFaR) and Earnings at Risk (EaR) can better explain the risk of earnings and cash flow volatility to their financial statements.

About Bloomberg
Bloomberg, the global business and financial information and news leader, gives influential decision makers a critical edge by connecting them to a dynamic network of information, people and ideas. The company’s strength – delivering data, news and analytics through innovative technology, quickly and accurately – is at the core of the Bloomberg Terminal. Bloomberg’s enterprise solutions build on the company’s core strength: leveraging technology to allow customers to access, integrate, distribute and manage data and information across organizations more efficiently and effectively. For more information, visit Bloomberg.com/company or request a demo.

SOURCE Bloomberg
http://www.bloomberg.com

Enterprises Missing the Mark With Consumers Despite Nearly $5 Trillion Digital Investment

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Kony, Inc., the fastest-growing, cloud-based digital application and low-code platform solutions company, today unveiled the results of The Kony Digital Experience Survey 2019, which gauges the efficacy of global investment in digital transformation. The study benchmarked business investments and customer experiences in the following four vertical industries: banking, retail, utilities, and healthcare. Within these industries, nearly $5 trillion in investment dollars have yielded little improvement, with only 19 percent of consumers reporting any significant improvement in the experiences offered to them.

The study found that misalignment is not only driven by businesses out of sync with customers, but it goes in both directions. Consumers do not believe that businesses are investing in digital initiatives that result in meaningful outcomes. In every market and every vertical, consumers underestimated the number of businesses that are investing heavily in every customer experience outcome by at least 50 percent. Consumers also are not giving businesses credit for the level of investments they are making. Conversely, businesses are not listening to – or understanding – the evolving needs of their customers. According to the study, only 28 percent of enterprise digital transformation initiatives are started specifically with customer needs as the priority.

“Improvements in costs and efficiencies are always welcomed and clearly important to project funding, but the real returns and real impact of digital starts and stops with its impact on the customer experience,” said Thomas E. Hogan, chairman and CEO, Kony, Inc. “The Kony Digital Experience Index highlights a chasm between consumer expectations and business spending. The fact that only one in five consumer respondents felt any significant improvement demonstrates the enormous opportunity that remains for businesses to leverage digital for customer loyalty, service levels, convenience, and commerce.”

The study also ranks businesses efforts on the Kony Digital Experience Index (KDXi). KDXi Leaders and Laggards are scored based on how the business delivers on several digital experience outcomes, such as improving web experiences to make it easier to navigate, more engaging and intuitive to use; providing comprehensive online and mobile capabilities so users can do everything online or on their mobile device, quickly and easily; and offering cutting-edge digital experiences such as AI, chat bots and augmented reality.

While there are a number of differences between KDXi Leaders and KDXi Laggards, the consistent theme for KDXi Laggards is an internal focus (improving workflow productivity, cost reduction, better internal collaboration) while KDXi Leaders have an external focus (meeting customers’ changing expectations, agility, risk management – such as cybersecurity). Furthermore, KDXi Leaders consistently recognize the need for change and they are prepared to take risks. They have agile, customer-focused organizations that recognize digital transformation is a cultural change, not just a technological change.

Hogan explained, “Laggards are simply trying to keep pace and improve internal efficiencies. The customer experience is not the main focus, and that’s painfully obvious to the customer. Businesses must listen to and understand customer needs such as data security, digital support and improving mobile experiences, which are especially high in the U.S. and North America.”

The findings in Kony’s Digital Experience Index are based on 1,600 respondents across the U.S., Europe and Asia. Of that group, 800 were major contributors or leaders of digital transformation initiatives in Enterprise businesses with 500+ employees.

To access the full report visit: The Kony Digital Experience Survey 2019

About Kony, Inc.
Kony is a fast-growing leader in digital experience development platforms and the emerging low-code platform market; and a recognized leader in digital banking. Kony Quantum provides low-code without limits, a next-generation low-code app development platform that delivers rich digital experiences. Kony DBX is the banking and financial services arm of Kony, Inc. and is a globally recognized leader in digital banking transformation. With a portfolio of modern, frictionless applications powered by the industry’s most recognized platform, Kony DBX enables banks and credit unions of any size to accelerate innovation — without compromising what’s critical.

For more information, please visit www.kony.com.

61% of Financial Services and Insurance Companies Plan to Move Away from Traditional Business Models

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According to research findings released today by NTT DATA Services, new digital technologies, increased competition, and evolving customer expectations are driving 61% of financial services and insurance companies (FS&Is) to shift away from traditional, vertically-integrated business models of offering customers only their own products.

FS&Is are moving toward creating a Digital Business Platform (DBP) that allows them to operate with fintechs, insurtechs and other parties in a global ecosystem to provide consumers unique value, 24/7. As a result, nine in 10 global FS&Is believe in the need for transformational digital change.

New technologies, such as artificial intelligence and blockchain, are the top trend impacting FS&Is as identified by 53% of respondents, but the findings also indicate technology giants are a significant concern for leaders. According to the research, 84% of firms report that industries outside of financial services and insurance are providing a significant influence on the direction of the market, and 83% believe new entrants, such as Amazon, Apple and Facebook, could become major competitors in offering financial products.

“Platform-driven companies such as Amazon, Google, and Netflix that provide fast and easy digital experiences to customers are changing the expectations for financial services and insurance companies,” said Toshi Fujiwara, Representative Director and Senior Executive Vice President, NTT DATA. “These technology giants operate agile business models that allow them to leverage existing customer data and quickly customize new products at competitive prices to better serve mobile-first consumers.”

In order to address these market forces, 85% of respondents indicated a Digital Business Platform represents a significant opportunity to reposition their companies and 83% agreed that integration of legacy core systems into a DBP is important for their competitive position in the next 3-5 years. However, only 23% said their companies currently have a DBP that is working and providing benefits.

“Banks have actually been digital businesses for decades, moving money at the speed of light. Recasting their capabilities and building a true Digital Business Platform will allow companies to create and support multiple business models on a single technical framework without replacing outdated, legacy core systems,” said Wayne Busch, President, Financial Services, NTT DATA Services. “This will also enable partnerships with fintechs and insurtechs that help to more easily incorporate new digital technologies, use application programming interfaces and share customer data.”

Key study findings include:

61% of FS&Is are changing their business models to compete with platform-driven companies such as Amazon and Apple.
17% plan to develop the best products and sell them via partners inside and outside of the financial services and insurance industry
14% plan to become the best provider of customer experience and sell products of other financial services and insurance companies (not their own)
14% plan to become an online marketplace and sell many financial services and insurance products
14% plan to create a platform like Apple’s App Store
Each sector of the financial services and insurance industry is evolving their business models differently.
52% of insurers plan to maintain a traditional full service model, while 21% indicated a shift toward developing the best products
16% of banks are more inclined to consider creating platforms and 20% plan to evolve to an online marketplace
20% of brokerage, capital markets, and wealth management firms plan to focus on developing the best products and another 20% on becoming the best provider of customer experience
FS&Is are in the early stages of digital business platform maturity.
Only 23% have a DBP currently working and providing benefits
77% of firms are in the early stages of planning or have no plans at all
Insurers are ahead of other financial sectors when it comes to having already built a DBP.
32% of insurance firms have built a DBP compared with just 23% of banks and 19% of brokerage, wealth management and capital market firms
Europe is ahead of the game in building Digital Business Platforms due to the PSD2 regulation. Below is the ranking of countries from the highest to the lowest percentage of mature DBPs:
43% Italy
38% Germany
23% Spain
22% Japan
18% U.K.
8% U.S.
FS&Is expect meaningful business benefits from investing in digital business platforms. The 23% of companies that have digital business platforms working and providing business benefits now reap these rewards:
46% provide a better customer experience
44% respond faster to market needs
44% grew revenue
41% increase customer retention
Partnerships with fintechs and insurtechs will be a popular strategy.
84% agree that fintechs and insurtechs will become more relevant, allowing for the creation of new partnerships
66% of distribution partners for FS&Is will include fintechs and insurtechs, as well as financial services startups and non-traditional firms
53% expect to integrate 3rd party product into their DBP
“Digital-forward financial institutions and insurers see digital business platforms as the path to effectively modify legacy core systems with digital features and functions,” said Jose Pablo Carbonell, CEO of Europe, everis. “Those who attempt to maintain their vertically-integrated businesses supported by aging technology will have difficulty remaining relevant in the new world of platforms and the digital ecosystem.”

Download a copy of the research, “Digital to the Core: Transforming Financial Services and Insurance in the New World of Digital Business Platforms and Ecosystems,” by visiting https://us.nttdata.com/en/engage/Transforming-Financial-Services-and-Insurance.

For the research, NTT DATA surveyed 471 senior executives in banking, insurance, brokerage, wealth management and cards & payments across the U.S., UK, Germany, Spain, Italy and Japan in early 2019. Nearly 50% of respondents were from institutions with more than $10 billion in annual revenue and 55% of those who completed the survey were C-level executives.

About NTT DATA
NTT DATA is a leading IT services provider and global innovation partner headquartered in Tokyo, with business operations in over 50 countries. Our emphasis is on long-term commitment, combining global reach with local intimacy to provide premier professional services varying from consulting and systems development to outsourcing. For more information, visit www.nttdata.com.

About NTT DATA Services
NTT DATA Services partners with clients to navigate and simplify the modern complexities of business and technology, delivering the insights, solutions and outcomes that matter most. We deliver tangible business results by combining deep industry expertise with applied innovations in digital, cloud and automation across a comprehensive portfolio of consulting, application, infrastructure and business process services.

NTT DATA Services is a division of NTT DATA Corporation, a top 10 global business and IT services provider with 120,000+ professionals in more than 50 countries, and NTT Group, a partner to more than 88 percent of the Fortune 100. Visit https://us.nttdata.com/en/ to learn more.

US Companies Lead in Value Creation, but Asian Companies Are Catching Up

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US companies continue to lead the way among the world’s large-cap value creators, taking 7 of the top 10 spots and 11 of the top 20 for global large-cap companies in the 2019 Value Creators rankings released today by Boston Consulting Group (BCG). This is the 21st annual edition of the rankings, which shed light on patterns and characteristics of the world’s top value creators.

Although US Firms Take Seven of the Top Slots in BCG’s 2019 Large-Cap Value Creators Ranking, Asian Firms Dominate the Broader Rankings

Only 2 of the top 10 large-cap value creators and 5 of the top 20 are based in Asia, reflecting the disproportionate number of North American companies that rank among the largest companies by market capitalization. But a look at performance beyond the top 20 large-cap value creators reveals a much different picture. Among the top 100 performers, 28% are North American and 55% are Asian. Similarly, among the 330 companies that rank in the top 10 in their industry, 29% are North American and 45% are Asian.

“Asian companies are catching up to, and in some cases surpassing, their longer-established US counterparts in value creation,” said Alexander Roos, a BCG senior partner. “We expect that our annual rankings will provide important insights into this trend in the coming years.”

Since 1999, BCG has published annual rankings of the world’s top value-creating companies, measured on the basis of total shareholder return (TSR) over the previous five-year period. To compile the 2019 rankings, BCG analyzed TSR at approximately 2,250 companies globally (slightly more than one-third of them US-based companies) from 2014 through 2018. In addition to providing our large-cap ranking of five-year TSR at the world’s 200 largest companies by market valuation, the 2019 Value Creators rankings offer rankings of the top 10 value creators in each of 33 industry sectors.

TSR measures the combination of share price gains and dividend yield for a company’s stock over a given period. It is the most comprehensive metric of performance in shareholder value creation. Average annual TSR is the amount of TSR that a company delivered, on average, over the five years covered in BCG’s 2019 analysis.

Key findings:
From 2014 through 2018, the top 10 value creators delivered an average five-year TSR of 35%, spanning a range from 27% to 54%.

The median five-year TSR for the more than 2,200 companies in the database was 8.2%, which is in line with long-term global capital market returns. In contrast, the median TSR for last year’s sample, covering 2013 through 2017, was 15.6%, reflecting the strong bull market throughout that five-year period.

Technology and media are once again the primary value-driving sectors on the large-cap leader board, but this year’s list is somewhat more diverse. Tech and media companies hold down 6 spots in the large-cap top 10 and 8 spots in the large-cap top 20 this year—down from 9 spots and 13 spots, respectively, in last year’s ranking. Medical technology and health care services companies occupy 4 of the top 20 spots, up from 3 last year.

Among the 33 industries tracked, health care services leads the charge with a median annual TSR of 17%—more than twice the median for all companies in the database. Medtech finishes a close second, with a median annual TSR of 16%, followed by financial infrastructure providers (at 15%) and technology (at 14%). Technology and medtech were top-performing industries in last year’s rankings as well, coming in third and fifth, respectively, among the 33 industries. In contrast, health care services finished at number 13 in the 2018 rankings.

In the list of the world’s 200 most valuable companies, for the third year in a row, Nvidia, Broadcom, and Netflix hold three of the top five positions. Adobe Systems joins the top five, while Tencent drops to eighth place. Facebook plunges from number 5 last year to number 33 this year—no surprise given the company’s steep decline in value during the market correction that occurred in the fourth quarter of 2018. Kweichow Moutai, a Chinese consumer nondurables company, vaults from tenth place last year to second place this year.

Among the more than 2,000 companies in BCG’s database that were publicly listed during each of the ten years from 2009 through 2018, only four (approximately 0.2%) outperformed their respective local market index every year. Looking at a broader set of more than 5,700 companies that have more than $1 billion in market capitalization, the study found that a similar percentage (approximately 0.3%) achieved this feat each year over the period.

“Many companies ride a wave of success in specific market cycles, but it is extremely rare, and an even greater accomplishment, for a company to deliver strong performance year after year,” said Eric Wick, a BCG senior partner.

The 2019 BCG Value Creators ranking is presented in an online interactive format that allows users to see the TSR performance of the top 50 large-cap companies and other value creators across 33 industries, as well as to review the individual drivers behind each company’s TSR performance.

SOURCE Boston Consulting Group (BCG)
www.bcg.com

World FinTech Report 2019: The Industry is Transitioning from Open Banking to “Open X”: Driven by four fundamental market shifts, the industry is moving to a shared marketplace that demands improved collaboration and specialization

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The World FinTech Report (WFTR) 2019, published today by Capgemini and Efma, indicates that even though Open Banking has yet to reach maturity, the financial services industry is entering a new phase of innovation – referred to as “Open X” – that will require deeper collaboration and specialization. The report advocates that banks and other financial services ecosystem players must begin to plan accordingly and evolve their business models.

“The findings of the report could not be clearer: collaboration will be the foundation of the future of financial services”

The WFTR 2019 identifies a dual challenge: FinTechs are struggling to scale their operations and banks are stalling on FinTech collaboration. As a result, industry players are looking to leapfrog beyond Open Banking towards Open X, which is a more effective, structured form of collaboration, facilitated by Application Program Interface (API)1 standardization and shared insights from customer data. The era of Open X will create an integrated marketplace, with specialized roles for each player that will enable a seamless exchange of data and services, improving customer experience, and expediting product innovation.

Capgemini's World FinTech Report 2019 Infographic

Key findings of the report include:

Open X will transform industry norms and assumptions

The advent of Open X is being driven by four fundamental shifts:

A move away from a focus on products to an emphasis on customer experience
The evolution of data as the critical asset
A shift from prioritizing ownership to facilitating shared access
Emphasis on partnering to innovate instead of buying or building new solutions
Open X will lead the financial services industry to a shared ecosystem or marketplace, in which the industry reintroduces the re-bundling of products and services, and both banks and FinTechs must re-evaluate their strategy for innovation and serving customers.

APIs will be critical Open X enablers

APIs, which allow third parties to access bank systems and data in a controlled environment, will be catalysts to creating the Open X marketplace. While customer data is already widely shared and leveraged in the industry, standardized APIs are not commonplace. Although requirements and regulations are complex, standardization will help to reduce fraud, improve interoperability, increase speed to market, and enhance scalability.

The WFTR 2019 also finds that industry players are looking at two potential monetization models for APIs – revenue-sharing (which 60% of banks and 70% of FinTechs think is feasible) and API access fees (supported by 46% of banks and 55% of FinTechs). However, only about a third of banking executives said they are currently well equipped to monetize APIs.

Privacy, security and collaboration concerns may slow progress

While banks and FinTechs said they understand the importance of collaboration, apprehension over privacy and security remain top of mind. When asked what concerns them about Open Banking, the vast majority of banks identified data security (76%), customer privacy (76%), and loss of control of customer data (63%). FinTechs were more optimistic about Open Banking, but 50% expressed fears over security and privacy, and 38% over the loss of control of customer data.

When asked about roadblocks to effective collaboration, 66% of banks and 70% of FinTechs pointed to a difference in the other’s organizational culture/mind-set, 52% of banks and 70% of FinTechs mentioned process barriers, and a lack of long-term vision and objectives were listed as gates by 54% of banks and 60% of FinTechs. Only 26% of bank executives and 43% of FinTech leaders said they had identified the right Open Banking collaboration partner. These responses suggest that many banks and FinTechs remain unprepared for Open Banking, let alone for the increased demands of data sharing and integration that Open X will bring.

Open X participants must choose strategic, specialty-based roles

Within the Open X marketplace, banks will need to enhance their integrated (traditional) model first and then focus on areas of specialized strength. The WFTR 2019 identifies three strategic roles expected to evolve as a part of Open X:

Suppliers will develop products and services;
Aggregators will amass products and services from the marketplace and distribute them through internal channels, holding onto customer relationships;
Orchestrators will act as market connectors and coordinators, facilitating partner interactions.
According to the report, integrated firms2 are likely to struggle to match the time to market of an ecosystem of specialists and find it challenging to meet the unique demands from customers. Within the Open X marketplace, many incumbents may not be best positioned to compete as an Orchestrator and their strengths may lead them to other roles. No matter what role they assume in Open X, however, they must recruit the right talent, leverage data and technology, and collaborate with FinTechs to first ensure better internal capabilities for competitive delivery of relevant services in the current Open Banking scenario.

“Open Banking has long been regarded as transformational for financial services, but this report shows it is just one part of a much bigger picture,” said Anirban Bose, CEO of Capgemini’s Financial Services and Member of the Group Executive Board. “The industry is on the verge of a more comprehensive evolution, where there is opportunity to leapfrog into an integrated marketplace that we are calling Open X. In Open X, there will be seamless sharing of data, and ecosystem partners will be able to collaborate in a far more comprehensive way. Our research suggests that banks and FinTechs need to prepare themselves for a more radical change than many previously anticipated.”

“The findings of the report could not be clearer: collaboration will be the foundation of the future of financial services,” said Vincent Bastid, Secretary General of Efma. “In the era of Open X, ecosystem players will have to work together more effectively than they have previously. Only by embracing collaboration and new, specialist roles can both banks and FinTechs thrive and best serve their customers. It’s clear that many barriers to collaboration still exist, and there is an urgent need to overcome them for collective benefit.”

Report methodology

The World FinTech Report 2019 is based on a global survey encompassing responses from 116 traditional financial services firms and 40 FinTech firms including banking and lending, payments and transfers, and investment management. Questions sought to yield perspectives from both FinTech and traditional financial services firms— exploring the emergence of Open Banking in the financial services industry. It sheds light on the impact the new ecosystem will have on all the stakeholders, the challenges and concerns that firms will face, and the emergence of new businesses and monetization models in this space.

About Capgemini

A global leader in consulting, technology services and digital transformation, Capgemini is at the forefront of innovation to address the entire breadth of clients’ opportunities in the evolving world of cloud, digital and platforms. Building on its strong 50-year heritage and deep industry-specific expertise, Capgemini enables organizations to realize their business ambitions through an array of services from strategy to operations. Capgemini is driven by the conviction that the business value of technology comes from and through people. It is a multicultural company of over 200,000 team members in more than 40 countries. The Group reported 2018 global revenues of EUR 13.2 billion.

Visit us at www.capgemini.com. People matter, results count

About Efma

A global non-profit organization, established in 1971 by banks and insurance companies, Efma facilitates networking between decision-makers. It provides quality insights to help banks and insurance companies make the right decisions to foster innovation and drive their transformation. Over 3,300 brands in 130 countries are Efma members.

Headquarters in Paris. Offices in London, Brussels, Andorra, Stockholm, Bratislava, Dubai, Milan, Montreal, Istanbul, Beijing, Tokyo and Singapore. Learn more www.efma.com.

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1 Application programming interface (API) refers to a set of functions and procedures that a player opens to the external world to allow the creation of applications that access the features or data of an operating system, application, or other service.
2 Integrated firms refer to the firms that perform all the functions on their own without collaborating or leveraging other firms in the ecosystem. Many of the banks in the current ecosystem are integrated firms as they build, produce, and distribute their own products for all business lines (without leveraging FinTechs or other players in the ecosystem)