Wealth Management - Seamless digital experience: Wealth firms are enhancing digital platforms to consolidate services and create seamless customer experiences [1] - Hyper-personalized advisory: AI enables made-to-order investment advice strategies, catering to individual client needs [1] - Bridging generation gaps: Wealth firms are adapting advice to resonate with high-net-worth individuals (HNWIs) across all age groups, especially younger entrepreneurs [1] - Inorganic growth strategies: Wealth firms are seeking external expansion to broaden services and boost revenues [1] - Regulations drive ESG traceability: Wealth firms are implementing ESG asset transparency metrics as regulators standardize sustainability reporting [1] - Digital onboarding: Digital onboarding accelerates client acquisition, improves compliance, and boosts revenue through white-labeling [1] - Unified operating models: Wealth firms are unifying operating models to deliver a consistent experience for HNWIs across geographies [1] - Gen AI for relationship manager efficiency: Generative AI-powered copilots enhance relationship manager productivity [1] - Real-world asset tokenization: Blockchain-powered real-world asset tokens improve liquidity and access [1] - Cloud-native wealth management platforms: Cloud-native platforms enable scalable and cost-efficient wealth management processes [1] Retail Banking - Omnichannel experience: Retail banks are boosting customer experiences across digital platforms, contact centers, and branches [1] - Financial literacy: Financial literacy and personal budget apps are enhancing customer confidence and promoting financial inclusion [1] - Next-gen banking: Retail banks are targeting youth to secure long-term customer lifecycle growth [1] - Operational resilience: Digital operational resilience remains crucial for regulatory compliance [1] - RegTech for compliance: Intelligent RegTech solutions reduce compliance costs and timelines [1] - Deposit growth: Deposit growth continues to be a priority for retail banks, along with lowering funding costs [1] - Onboarding efficiency: Digital identity management is improving onboarding efficiency [1] - AI for efficiency gains: AI is driving productivity by reimagining customer and employee journeys [1] - ESG product strategy: Banks are implementing intelligent ESG product strategies and solutions [1] - Leveraging open finance: Open finance regulations enable retail banks to develop a 360-degree customer footprint [1] Payments - Open finance: Open-finance-based use cases are growing as regulators improve financial data access [1] - Instant payment adoption: Instant payment rails are cannibalizing checks and debit cards, while mobile wallets maintain dominance [1] - POS innovations: POS payment innovations enhance merchant acquisition capabilities and increase consumer credit options [1] - Cross-border payments: Multi-territory instant payment corridors are revolutionizing cross-border payments, offering speed and efficiency [1] - Cloud-based payment hubs: Cloud-based payment hubs provide unified and consolidated multi-rail payment processing capabilities [1] - Multi-rail payment strategy: Multi-rail strategies enhance payment flexibility and offer different payment methods in a single interface [1] - Operational resilience: Regulators are prioritizing operational resilience to foster trust in cashless markets and economies [1] - Decentralized identity: Decentralized digital identity management combats fraud and grants customers greater control over personal data [1] - Remittance transformation: Remittance transformation is reshaping the global financial landscape with plummeting costs and fast transfer times [1] - Data monetization: Payments data is driving innovation and creating new revenue streams [1] Capital Markets - Perpetual KYC revolution: Organizations are digitizing and automating KYC processes to reduce compliance costs and enhance customer experience [3] - Accelerating sustainable lending: Banks are leveraging sustainable finance as a growth engine [3] - Changing investment landscape: The market is shifting due to passive investing, retail investor growth, and geopolitical forces [3] - Efficiencies through collaboration: The industry is moving towards mutualization and strategic outsourcing to reduce post-trade processing costs [3] - Capital efficiency: Global uncertainty and regulatory shifts are driving organizations to focus on capital strategy [3] - Modernized resilient platforms: Legacy system limitations are driving capital markets organizations to modernize core systems [3] - DLT & tokenization: Distributed ledger technology (DLT) and tokenization are transforming the financial services industry [3] - Leveraging Generative AI: Capital markets organizations are using Gen AI to create actionable insights and efficiencies [3] - Global accelerated settlement: The push for a global T+1 settlement cycle continues, with the UK and EU leading the way [3] - Transaction reporting optimization: Firms are focusing on efficiency and control following regulatory rewrites [3] Lending & Leasing - Frictionless Enterprise: Lending firms are providing a seamless omnichannel digital experience for equipment financing [3] - Moving towards Equipment-as-a-Service: The growth of as-a-service models is redefining equipment financing [3] - Embedded finance: Equipment leasing is being transformed with seamless integration of financing solutions [3] - Expanding B2C channels: Digital platforms are being leveraged for scalable growth and enhanced customer engagement [3] - Bespoke Solutions: Customized solutions are being offered in an efficient and cost-effective manner [3] - Green asset financing: Sustainability is reshaping the investment landscape [3] - Navigating the regulatory landscape: There is a shift towards sustainable and transparent lending [3] - Ushering digital transformation: Data-driven management and decision-making are being leveraged [3] - Simplifying and standardizing processes: AI and ML technologies are being integrated across geographies and business lines [3] - Balancing automation with human expertise: AI and ML are being used for efficiency while preserving human judgment [3] Sustainability - Sustainable product opportunities: Growth in innovative and eco-friendly debt instruments and insurance products is being observed [3] - Sustainability service opportunities: Financial institutions are supporting clients to accelerate their net-zero transition [3] - ESG risk criteria: Financial institutions are increasingly incorporating ESG risk factors into investment strategies [3] - Increased regulation: Enhanced regulatory frameworks and reporting are reshaping corporate accountability [3] - Industrialized climate risk modeling: Financial institutions are intensifying efforts to assess and manage climate-related risks [3] - Greenwashing and greenhushing: Financial institutions face scrutiny from customers, activists, and regulators [3] - Decarbonization of portfolios: Stakeholders are prioritizing low-carbon investments to reduce carbon footprints [3] - Sustainability as corporate DNA: Enterprise-wide sustainability is being integrated into operations, products, and supply chains [3] - Gen AI aiding sustainability: Gen AI is enabling innovative ways to implement sustainability in financial services [3] - Going beyond carbon emissions: Financial services are broadening ESG strategies to include social and biodiversity factors [3] Key Companies and Innovations - Klarna: Partnered with Worldpay to offer flexible payment options, including buy now/pay later, simplifying integration for merchants [9] - Wero: Launched by the European Payments Initiative (EPI), offering instant money transfers using phone numbers and QR codes [13] - Pix: Brazil's instant payment system expanded to Europe, enabling QR payments at Barcelona airport [14] - WorldFirst: Launched real-time cross-border payments for small and medium businesses in over 200 markets [25] - Partior: A DLT payment network enabling real-time, multi-currency clearing and settlement for cross-border payments [25] - Security Bank: Partnered with ACI Worldwide to modernize payment infrastructure and offer real-time payment solutions [34] - Abu Dhabi Islamic Bank: Launched a cloud-native payment hub to enhance cross-border transfer speed and efficiency [34] - HSBC: Launched the multi-currency app Zing, enabling transactions in over 200 markets using Visa's network [41] - Alexbank: Partnered with Mastercard to enhance payment solutions, focusing on fraud detection and cybersecurity [41] - Mastercard: Expanded payment resiliency solutions to ensure seamless card payments [49] - DBS Bank: Invested USD 58 million to improve technology resiliency after digital disruptions [49] - MUFG: Collaborating on a decentralized digital identity initiative using distributed ledger technology [92] - HSBC: Prototyping a decentralized digital identity solution for internal account opening [92] - CIBC: Partnered with Visa to send money via digital wallets to key remittance destinations [97] - Mox Bank: Partnered with Wise to provide express international money transfers with reduced costs [97] - JPMorgan Chase: Introduced Chase Media Solutions, leveraging customer data for targeted retail deals [99] - PayPal: Launched an ad sales business leveraging user behavior data for targeted advertising [99]

Industry Investment Rating - The report does not explicitly provide an industry investment rating [1][2][3] Core Viewpoints - There is a disconnect between what banking customers want and what retail financial institutions provide, highlighting the need for a customer-centric approach [2] - Retail financial institutions can build trust and loyalty by understanding and supporting customers during key life events [2][12] - Customers value seamless service, personalized experiences, quality interactions, and clear communication, which are areas where retail FIs can improve [4] Customer-Centric Challenges - **Easy-to-understand communication**: Over 52% of customers are dissatisfied with current communication practices, desiring transparent and honest information [7] - **High-quality customer service**: Nearly 48% of customers report subpar experiences, often due to limited access to personalized support and long wait times [8] - **Consistent and connected digital experiences**: 44% of customers face challenges with unreliable mobile apps and difficult-to-navigate websites, leading to frustration [10] Life Events and Opportunities - Life events such as buying a home, starting a family, or planning for retirement present significant opportunities for retail FIs to build trust and loyalty [12] - Retail FIs can offer personalized financial planning, transparent information, and streamlined application processes to support customers during these events [21][22][23] - Proactive support through life event trigger alerts and collaborative ecosystems can enhance customer experiences and foster long-term relationships [26][27] Technology and Skills - Retail FIs must leverage technology and skills to enhance the customer journey, such as offering personalized financial products and integrating customer profiles [29] - Continuous feedback loops and regular check-ins help FIs refine their services and stay attuned to evolving customer expectations [28] Conclusion - Trust and loyalty are earned by being present in the moments that matter, offering support beyond financial products, and building deeper personal connections [31] - Retail FIs that recognize the significance of life events can create lasting impressions, strengthen their reputation, and deliver exceptional customer experiences [31]

Investment Rating - The report indicates a strong positive sentiment towards generative AI, with 80% of organizations increasing their investment in 2023, and no organization decreasing its investment from the previous year [2][7]. Core Insights - Generative AI (Gen AI) is rapidly transforming organizational structures and processes, enhancing productivity and creativity while allowing employees to focus on complex strategic tasks [7][8]. - The adoption of Gen AI is fostering a culture of continuous learning and adaptability within organizations, necessitating significant changes in workforce skills and organizational structures to fully realize its potential [8][10]. - Ethical considerations and the need for strong governance frameworks are emphasized, as organizations must ensure responsible use of Gen AI to mitigate risks associated with bias and misuse [10][12]. Summary by Sections Adoption and Impact - Organizations across various industries are embedding Gen AI into their operations, leading to improved operational efficiency and enhanced customer experiences [2][7]. - Early adopters of Gen AI are witnessing substantial benefits, with a notable increase in investment levels across all organizational domains [2][7]. Workforce Transformation - Gen AI is expected to augment human capabilities, allowing workers to transition from repetitive tasks to more strategic roles that leverage creativity and relationship-building [7][8]. - The report highlights the importance of upskilling the workforce to adapt to the changes brought about by Gen AI, with a focus on self-learning and training programs [8][10]. Ethical and Governance Considerations - Organizations are urged to establish guidelines for the safe use of Gen AI, ensuring that outputs are validated to eliminate bias and uphold ethical standards [10][12]. - The report stresses the need for comprehensive safeguards and collaborative efforts from policymakers and organizations to ensure responsible use of Gen AI [12][30]. Technological Advancements - The rise of open-source and small language models is noted for their cost-effectiveness and minimal environmental impact, promoting innovation and collaboration [13][15]. - The report discusses the balance between generalized and specialized models, indicating a market for both types to address varying organizational needs [23][25]. Sustainability - The environmental implications of Gen AI are addressed, with organizations recognizing the need to balance the technology's potential against its impact on the planet [29][30]. - Strategies for mitigating environmental impact include optimizing data usage, developing energy-efficient models, and utilizing renewable energy sources [30][51].

Investment Rating - The report emphasizes a customer-centric strategy as crucial for growth in the retail financial institutions sector, indicating a positive outlook for companies that effectively implement such strategies. Core Insights - Financial institutions must prioritize understanding customer needs and preferences to drive growth, as 71% of executives believe this is critical, yet 54% admit to lacking sufficient customer insights [4][11][10] - The report identifies key drivers for enhancing customer relationships, including personalization, accessibility, convenience, and transparency, which are essential for building loyalty and achieving sustainable growth [4][13][29] - A four-pronged framework is proposed for implementing customer-centric strategies, focusing on advanced technologies like generative AI to better understand and meet customer needs [4][30][33] Summary by Sections Understanding Customers - Financial institutions recognize the importance of customer-centric strategies but often struggle with execution due to insufficient insights into customer needs and pain points [5][10] - Key findings from surveys indicate that customers value clear communication, quality service, and personalized experiences, which are often lacking in current offerings [6][9][11] Executive Priorities - A significant portion of executives (60%) do not engage enough with employees and customers to understand the impact of boardroom decisions on customer experiences [4][20] - The report highlights that 51% of executives find their goals misaligned with customer needs, indicating a critical challenge in strategy execution [17][19] Customer-Centric Strategy Framework - The proposed framework includes understanding customer archetypes, defining jobs to be done, optimizing interactions, and establishing core principles to guide organizational behavior [31][32] - Emphasizing the use of advanced technologies, particularly generative AI, is essential for enhancing customer engagement and operational efficiency [33][34] Technology and Data Utilization - The report stresses the need for financial institutions to leverage data effectively, with 87% of executives acknowledging a lack of centralized customer views [26][27] - Generative AI is highlighted as a transformative tool for personalizing services and improving content management, with 73% of executives believing it will enhance service offerings [34][37] Conclusion - The report concludes that financial institutions must bridge the gap between their strategies and customer expectations by embracing data-driven insights and advanced technologies to foster deeper relationships and drive growth [47][48]

Embrace data to accelerate sustainability Contents Executive summary 4 The business case for sustainability is compelling 5 Poor reporting and data challenges obscure sustainability efforts 7 Integrate ESG data for enhanced transparency 10 Conclusion 13 Methodology 14 Partner with Capgemini 16 Ask the experts 17 Key contacts 18 Acknowledgments 19 Endnotes 20 2 Embrace Data to Accelerate Sustainability Introduction As the planet warms, climaterelated disasters and illnesses are becoming more frequent. The co ...

In partnership with Capgemini � | --- | --- | |-------|----------------------| | | | | | MARKET IMPACT REPORT | HFS Foreword Oliver Pfeil CEO, Capgemini Business Services Phil Fersht CEO, HFS Research | --- | --- | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

HARNESSING THE POWER OF TECHNOLOGY FOR A SUSTAINABLE FUTURE Climate tech: Harnessing the power of technology for a sustainable future #GetTheFutureYouWant Climate tech: Harnessing the power of technology for a sustainable future e y v r i a t m u c m e x u E S Climate technologies – a diverse range of innovative technologies that includes renewables, batteries, lowcarbon hydrogen, carbon capture and alternative fuels – are crucial to formulating an effective response to the climate and ecological crisis. Th ...

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - Financial services organizations are increasingly focusing on customer centricity, cost reduction, and improved efficiency, leading to a shift in how enterprise business applications are implemented [2][4] - Microsoft Business Applications, including Power Platform and Dynamics 365, are enabling rapid development and digital transformation in financial services [2][3] - The adoption of Microsoft Business Applications is driven by their integration capabilities, customization, and cost-effectiveness, which help enterprises achieve operational excellence [10][20] Summary by Sections Microsoft Business Applications Landscape in the Financial Services Industry - The financial services industry is leveraging Microsoft Business Applications to enhance customer engagement and streamline operations [3][14] - Enterprises are prioritizing seamless integration, customization, and reliability when choosing Microsoft Business Applications [15][16] Enterprise Maturity Model for Microsoft Business Applications - The report presents an enterprise maturity model categorizing firms as best-in-class, intermediate, and basic based on their use of Microsoft Business Applications [34][41] - Best-in-class enterprises achieve significantly better strategic, operational, and financial outcomes compared to others, with a 1.5 times higher satisfaction rate [36][41] Recommendations for Enterprises to Become Best-in-Class - Enterprises are advised to counter user adoption challenges through internal enablement strategies and to leverage the broader Microsoft ecosystem for cost benefits [43][44] - Establishing a transformation-led culture and leveraging external talent are crucial for enterprises aiming to enhance their strategic and operational impact [46][44] Conclusion - The widespread adoption of Microsoft Business Applications in the financial services sector is driven by competitive pricing and scalability, with best-in-class enterprises overcoming challenges to achieve significant impacts [49][50]

IDC Spotlight sponsored by Capgemini June 2024 ...

AI-driven development using Pega Infinity ‘24 How the advanced Pega GenAI™ features optimize productivity Table of contents 1. Background and context 4 2. AI driven development using Pega Infinity ’24 GenAI features 6 2.1 Pega GenAI Blueprint 8 2.2 Pega GenAI Autopilot 12 2.3 Pega GenAI Coach 14 2.4 Pega GenAI Analyze 16 2.5 Pega GenAI Automate 18 2.6 Enhancements to Constellation 20 ...