Business
2024: Digital transformation’s ‘big bang’ moment?
Source: Finance Derivative
By Frode Berg, Managing Director – EMEA, Provenir
Today’s financial services industry is defined by rapid technological advances and a fast-evolving regulatory ecosystem that’s working hard to keep up.
Against this dynamic backdrop, the pressure on banks to remain both competitive and compliant has never been so intense. In an era shaped by the likes of Netflix and Just Eat, consumers are expecting the same seamless user experience and speed of delivery from their financial services providers.
Banks’ ability to survive and thrive in the new economy will therefore depend on their ability to successfully embrace digital thinking and the smarter artificial intelligence (AI) innovations that we are now seeing enter the market at pace.
A pressing need for a new mindset
What this means is that digital transformation is perfectly poised for significant acceleration in 2024.
Fuelled by the widespread adoption of hyper automation and the integration of AI-driven decision-making processes, digital transformation will further empower financial institutions to streamline their operations, boost efficiency, and harness the power of data analytics for more informed, precise, and strategic decision-making.
This can ultimately propel ambitious financial institutions to new heights of innovation and customer satisfaction.
But it will depend on their ability to fully grasp the opportunity. Banks and other financial institutions must start thinking of the digital journey as a non-stop set of continuous interactions with their customers.
It starts from the first point of contact, whether it’s a customer browsing a website or applying for a financial product on their mobile device. It’s imperative that providers maximise every digital interaction along the journey. And to do that, banks will need to ensure they have the technological capabilities as well as a thorough understanding of the customers’ needs. This will ensure frictionless and personalised interactions which are quick and informative for all consumers.
Data is imperative in ensuring that banks understand consumers, with the growing use of Big Data and the evolution of technologies such as AI and machine learning, the amount of data available to banks is unlimited. Banks should be using technology and data to understand what a consumer needs and when during every interaction of the consumer journey.
True digital transformation goes far beyond simply moving from paper or legacy technology to online systems. It’s much more than simply digitising processes. It requires a shift in a company’s mindset to discover how it can create more engaging and memorable digital banking experiences.
Harvesting the rich data landscape
The good news is that the building blocks are already in place.
Thanks to open banking, there is now a plethora of rich data for banks to draw on. Recent figures from Open Banking Limited highlight that 11% of British consumers are now active users of open banking as the country warms up to the proposition. According to recent CMA9 data, in January 2023, 7 million consumers and SMEs used open banking services.
This trend is being mirrored globally, with open banking particularly gaining traction in Brazil where Pix, the country’s open banking-powered instant payment scheme, outnumbered credit and debit card payments in the first quarter of 2023.
The entry of major consumer-focused players into the open banking space indicates that mass adoption is on the horizon, and I’d expect that the arrival of PSD3 will help mitigate the remaining regulatory challenges and further enable financial services organisations to explore innovative data-led strategies.
The reality for open banking is that the industry has experienced difficulties getting past hurdles such as consent, whilst struggling to truly convey the benefits of open banking to customers. Customer journeys often appear cumbersome due to the need to redirect to external banking providers, which often leads to attrition or loss of revenue.
Consumers are also cognizant of the negative outcomes of sharing data raising concerns around data security. However, there is optimism with the banking sector that open banking will continue to be game-changing in terms of customer-centric, tailored, real-time decisioning.
Rise of the machines
There will also be more significant strides in technology in 2024. As AI continues to mature, there is likely to be a shift towards using more precise language, using alternative terms such as robotics and machine learning that are more fitting to its capabilities.
As these technologies evolve and develop, banks are enabled to review all the key data they receive, allowing them to tailor their products to consumers’ individual needs and identify opportunities. Machine learning could be pivotal in ensuring that financial services firms move away from a ‘one-size-fits-all’ mentality and identifythe key trends in behaviour at the right point in time for individual customers.
In fact, according to McKinsey: “The cumulative benefits are so great that the annual potential value of AI and analytics for global banking might be as high as $1 trillion.”
And consumer expectations around customer experience are also likely to rise even further, given that they are increasingly reaping the benefits of convenience brought by AI in various aspects of their lives.
Banks are also increasingly leveraging the power of AI to combat fraud, as well as to fight off competition from smaller and more agile rivals. By 2025, it’s expected that the banking sector will spend an extra $31 billion on embedding AI into their existing systems, which really drives home just how indispensable AI technologies will become to the sector.
Whether banks now choose to partner with fintechs to speed up their digital journey or compete against them, one thing is certain: we are on the cusp of the real ‘big bang’ moment in digital transformation.
Many point to partnerships and strategic collaboration as the best approach for financial services to efficiently accelerate digital transformation, but it’s down to each organisation to perhaps now take the time to consider their options and the path that best suits them.
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Business
Need for speed: The importance of businesses acting fast!
John Kelleher, VP UKI & ME, UiPath
With significant economic disruption over the past few years, the ability to adapt to changing circumstances quickly has never been more important for businesses. Increasingly, there are instances of sudden pressure on organisations to adopt the latest technology, such as the push to move to cloud computing models or embrace artificial intelligence (AI).
In the past couple of years, the AI industry has thrived as the technology becomes indispensable for businesses. From chatbots to aid customer service interactions, to machine learning models that produce accurate financial forecasts, AI has found a place in all areas of business.
Soon, AI will become the standard customers expect, meaning organisations must adopt it at pace. Those who manage to implement the technology correctly will reap benefits in productivity, employee satisfaction and, ultimately, profitability. But to do this, organisations need to transform how they operate.
Customers won’t be patient
In an AI-driven world, patience is a virtue of the past. The expectations of service delivery and response times have drastically changed as the norm becomes swift response times delivered from digital-first organisations.
Customers continue to prioritise convenience with the purchases they make and demand more from the organisations they are loyal to. This ‘convenience economy’ is also lucrative for businesses as customers are willing to pay a 5% premium for convenience, which rises among younger consumers.
With these customer demands, the convenience attached to a business is a point of differentiation in a competitive marketplace. However, it is not possible to provide a service at pace unless the business offering it is set up in the right way.
The important takeaway from this is speed should be the top priority for businesses. With companies across all industries increasingly adopting AI to transform the services they offer, and the experiences customers have, convenience is no longer a competitive differentiator – it is a necessity. Businesses need to get ahead of the curve to ensure they don’t lose out to competitors.
Speed as a core business value
The capacity for your business to respond quickly to emerging market conditions and offer innovation at pace doesn’t only influence the experience for customers, but is transformative to how a business operates. Promoting speed and flexibility in internal business operations can support organisations to adapt quickly to any external challenges and uncertainties faster than their competitors.
Supply chains have experienced significant unforeseen disruption in recent years, and this has caused shortages, delays, and increased costs. For companies to stay ahead in this increasingly volatile environment, they must be prepared for uncertainty and be able to adapt to deliver at a fast pace for consumers. Across uses such as inventory management, supplier analysis and demand forecasting, AI can be an effective tool in boosting speed, in both issue identification and handling possible fall out should something go wrong. We’re already starting to see new expectations being set for supply chain organisations in response to this, with 50% expected to invest in AI and advanced analytics to prepare themselves for unexpected delays and disruption.
Another area speed is invaluable to is complying with increasingly complex regulation. Around 34% of businesses globally are using AI for regulatory compliance already, and businesses need to maximise this opportunity. The ripple effects of falling behind on compliance can’t be overstated. From adjusting privacy protocols and HR policies to incorporating updated environmental guidelines, move too slowly and you could see heavy fines, legal repercussions or a tarnished reputation.
AI and automation are key to accelerate business functions
AI and automation are key to helping organisations streamline processes and innovate faster. By simplifying how a business operates and reducing time spent on repetitive work, 90% of employees report a significant boost to productivity. Further, AI and automation can help predict and manage employee’s workloads better. If provided with the right data, AI algorithms have the capacity to predict and offer recommendations on business decisions, helping to eliminate crunch periods.
Integrating AI into your business’s workflows provides flexibility, productivity, and the capacity to handle unanticipated events. Companies will be able to respond faster to changes and manage their operations better and, as AI and automation are used to remove the repetitive drudgery from people’s work, employee satisfaction will improve.
Harnessing efficiency to maximise opportunity
Investing in AI and implementing it quickly is now a business imperative. Businesses in the UK are increasingly open to using AI as the number of UK AI companies has grown by over 600% over the last 10 years. Rapid implementation of AI not only enhances efficiency but also ensures companies can capitalise on new opportunities before other competitors do. Those who take advantage of AI will be better prepared to anticipate trends, refine the customer experience and improve their bottom line.
Operational efficiency creates a more favourable cost structure and boosts margins. Ensuring compliance mitigates risks and helps companies avoid fines and reputational harm while streamlining customer service not only lowers costs and reduces turnover but also strengthens customer retention and acquisition, driving top-line growth.
Today, more than ever, time is money.
Business
Wearable AI: How to supercharge adoption of consumer wearable devices
By Kevin Brundish, CEO of LionVolt
As we look toward the future, the global wearables market is projected to reach $265.4 billion by 2026. This growth is further fuelled by advancements in AI, which promise to enhance the functionality and performance of wearable devices. For instance, in the healthcare industry, artificial intelligence (AI) may use the massive volumes of data gathered by wearables to communicate with patients and offer precise diagnosis, advice and support.
Despite the remarkable features and capabilities of modern wearable devices, battery life remains a significant challenge. Most smartwatches, for example, still struggle to last a full 24 hours, making it difficult for users to monitor sleep patterns and daily activities continuously without frequent recharging. With the use of AI and applications that demand increasing amounts of data, this limitation prevents wearables from becoming fully integrated tools in our daily lives.
Advances in battery technology are looking to address this issue. At LionVolt we are working on a 3D lithium-metal anode technology which helps to significantly enhance lithium-ion battery performance.
Smaller Batteries, Same Energy
The most significant advantage of lithium-metal anode batteries is their ability to provide the same energy from a smaller size battery. This gives designers greater freedom and opens new possibilities for wearable technology by enabling the miniaturisation of existing wearable designs. In addition, lithium-metal anodes may allow manufacturers to lower overall prices by moving away from costly cathode materials they use now, to cathode materials being used in automotive industry, where there is a cost advantage through economies of scale.
Higher Energy Density and Faster Charging Times
When we compare conventional lithium-ion batteries to lithium-metal anode battery technology, the lithium-metal anode batteries have a superior energy density. For users of wearable devices, this translates to longer usage periods and fewer charging interruptions as well as faster charge times, which minimises downtime and guarantees that gadgets remain operational when needed.
Enhanced User Experience
Fast charging periods and increased energy density which is key to longer usage periods improve wearable technology’s overall performance, enabling consumers to maximise its benefits without sacrificing dependability or quality
Lithium-metal anode powered batteries also improve wearable gadgets’ dependability and durability. Users can count on their wearables to function reliably day or night and to enable a variety of applications, such as health monitoring and exercise tracking. These batteries are made to endure the demands of regular use, guaranteeing that gadgets continue to be reliable and operational for long stretches of time.
The use of the highest performing materials in wearables typically comes at a high cost. However, with the advancement of new technology, it becomes possible to utilize more widely available and cost-effective anodes without compromising on performance. This approach allows for the efficient operation of wearables while also offering a cost benefit, addressing the economic challenges associated with high-performance materials.
Overcoming Adoption Barriers
One of the key reasons for the slower adoption rate of consumer wearables is the charging rate. The utility of these products can be increased, along with their consumer appeal by extending their battery life and charging timeframes. The advantages of the next generation of batteries—faster charging, longer battery life, and improved device dependability—can greatly accelerate wearables’ uptake.
Advancing Wearable Technology
By tackling the crucial problem of battery duration, coupled with a fast charge capability, lithium-metal anode technology would propel the wearables business forward. An emphasis on sustainability and safety guarantees that these developments help both consumers and the environment, while our smaller, more efficient batteries provide designers the freedom to develop creative new gadgets.
Transforming the Landscape of Wearable Technology
Lithium-metal anode battery technology brings numerous benefits to the consumer wearables sector:
- Longer Battery Life: Wearable devices will last much longer on a single charge, addressing a significant pain point for users.
- Increased Monitoring Time: Faster charging means users can monitor their health and activities for extended periods without interruption.
- Reduced Equipment Needs: With longer battery life and faster charging, users will need fewer duplicate products to cover charging times, simplifying their tech ecosystem.
Imagine being able to monitor your heart activity and more to manage health conditions without worrying if your device has enough power? With improved battery longevity, users can rely on their wearables for consistent health insights, making it easier to identify trends and make informed lifestyle changes. This seamless integration into daily life not only promotes better health management but also empowers users to take proactive steps towards their well-being.
These enhancements not only improve the user experience but also pose the potential to increase the adoption rate of consumer wearables.
Looking Ahead: Shaping the Future of Wearable Technology
Wearables have a bright future because of AI and cutting-edge battery technology, which will greatly enhance their usability, dependability and functionality. The next generation of batteries are revolutionising the wearables market and paving the way for a new era of technological innovation by emphasising sustainability, increased energy density, quicker charging times, and improved safety features.
Business
The Future of Observability: Empowering businesses through data-driven transformation
Karthik SJ, General Manager AI, LogicMonitor
The tech industry is at the cusp of a revolution, where digital transformation has shifted from aspiration to necessity. At its heart lies observability – a critical enabler for organisations navigating the complexity of modern IT infrastructures. Observability goes beyond monitoring systems or tracking performance; it transforms vast streams of system data into actionable insights that drive real-time decisions, improve operational efficiency, and ensure business resilience.
Observability: The foundation of digital transformation
The digital transformation journey requires businesses to adopt a more sophisticated approach to managing their IT ecosystems. As organisations scale and evolve, they rely on a growing array of technologies, from cloud services to hybrid infrastructures, microservices, and containers. Parallel to increasing complexity, is a need for more granular visibility into system performance, security, and user experience.
This is where observability becomes essential, unlike traditional monitoring which typically tracks basic metrics like uptime and system health, observability provides a much deeper understanding of how systems are functioning and why. It enables businesses to not only detect issues but also diagnose the root causes, empowering data-driven decisions that improve performance across the organisation.
Converting raw data into insightful knowledge is vital in a world where companies need to function more quickly and efficiently. Beyond simply detecting issues, observability’s power lies in its ability to help organisations foresee problems before they cause operational disruptions. This proactive strategy helps businesses maintain uptime, optimise resources, and, ultimately, deliver superior customer experiences.
The rise of AI-powered observability
As organisations grapple with increasingly complex hybrid IT environments, AI-powered observability has emerged as a cornerstone of innovation. These solutions go beyond ensuring uptime-they provide actionable intelligence that enables businesses to optimise IT operations and address challenges proactively. With 68% of organisations leveraging AI tools for anomaly detection, root cause analysis, and real-time threat detection, the demand for advanced observability tools is surging. This trend reflects a growing recognition that these tools are no longer just a technical necessity but a strategic enabler of business success. Observability empowers enterprises to stay ahead by driving efficiency, resilience, and adaptability in an ever-evolving digital landscape.
The path ahead: The convergence of AI and observability
As we approach 2025, businesses harnessing AI-powered observability are poised to gain a significant competitive edge over those still relying on traditional monitoring solutions. This shift is underscored by the fact that 81% of enterprises plan to boost their AI investments in the coming year focusing on predictive analytics, automation, and anomaly detection to further optimise data centers and support AI-driven innovation. The integration of AI with observability is not just about identifying problems – it’s about enabling businesses to anticipate challenges, enhance operations, and sustain a competitive edge.
For LogicMonitor, the coming year is about driving innovation in an industry that’s evolving as fast as our customers’ needs. By working closely with our clients like TopGolf and Franke, we’re helping them navigate this transformation with confidence. As observability technology becomes increasingly essential, we’re committed to empowering businesses to thrive without being held back by technological limitations.
Observability’s ever-more-important role in 2025
As 2025 approaches, observability is set to become even more integral to IT operations, compliance, and innovation. Regulations like the EU’s Digital Operational Resilience Act (DORA) which mandates robust ICT risk management and incident reporting for financial services,highlight the critical need for continuous observability throughout the development cycle. This shift will accelerate the adoption of Observability-Driven Development (ODD), a strategic approach to managing the complexities in distributed systems and microservices architectures.
The expansion of observability is driven by the increasing necessity to monitor applications, infrastructure, and services across diverse and dynamic environments while staying resilient and improving customer experience. As data volumes grow, organisations will face increased scrutiny over observability spending, making it even more crucial that they align with regulation to enhance operational resilience and compliance. AI-powered observability systems will continuously learn from new data, user feedback, and past incidents, allowing them to improve over time and become more accurate and effective at identifying anomalies, reducing noise, and pinpointing root causes.
One thing is clear as the observability landscape develops further: businesses that make investments in cutting-edge, AI-powered observability solutions will be better prepared to meet tomorrow’s problems and thrive in the rapidly shifting digital economy.