Ecosystm Predicts: The Top 5 Customer Experience Trends for 2021

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In 2020, much of the focus for organisations were on business continuity, and on empowering their employees to work remotely. Their primary focus in managing customer experience was on re-inventing their product and service delivery to their customers as regular modes were disrupted. As they emerge from the crisis, organisations will realise that it is not only their customer experience delivery models that have changed – but customer expectations have also evolved in the last few months. They are more open to digital interactions and in many cases the concept of brand loyalty has been diluted. This will change everything for organisations’ customer strategies. And digital technology will play a significant role as they continue to pivot to succeed in 2021 – across regions, industries and organisations.

Ecosystm Advisors Audrey William, Niloy Mukherjee and Tim Sheedy present the top 5 Ecosystm predictions for Customer Experience in 2021. This is a summary of the predictions – the full report (including the implications) is available to download for free on the Ecosystm platform.

The Top 5 Customer Experience Trends for 2021

  1. Customer Experience Will Go Truly Digital

COVID-19 made the few businesses that did not have an online presence acutely aware that they need one – yesterday! We have seen at least 4 years of digital growth squeezed into six months of 2020. And this is only the beginning. While in 2020, the focus was primarily on eCommerce and digital payments, there will now be a huge demand for new platforms to be able to interact digitally with the customer, not just to be able to sell something online.

Digital customer interactions with brands and products – through social media, online influencers, interactive AI-driven apps, online marketplaces and the like will accelerate dramatically in 2021. The organisations that will be successful will be the ones that are able to interact with their customers and connect with them at multiple touchpoints across the customer journey. Companies unable to do that will struggle.

  1. Digital Engagement Will Expand Beyond the Traditional Customer-focused Industries

One of the biggest changes in 2020 has been the increase in digital engagement by industries that have not traditionally had a strong eye on CX. This trend is likely to accelerate and be further enhanced in 2021.

Healthcare has traditionally been focused on improving clinical outcomes – and patient experience has been a byproduct of that focus. Many remote care initiatives have the core objective of keeping patients out of the already over-crowded healthcare provider organisations. These initiatives will now have a strong CX element to them. The need to disseminate information to citizens has also heightened expectations on how people want their healthcare organisations and Public Health to interact with them. The public sector will dramatically increase digital interactions with citizens, having been forced to look at digital solutions during the pandemic.  

Other industries that have not had a traditional focus on CX will not be far behind. The Primary & Resources industries are showing an interest in Digital CX almost for the first time. Most of these businesses are looking to transform how they manage their supply chains from mine/farm to the end customer. Energy and Utilities and Manufacturing industries will also begin to benefit from a customer focus – primarily looking at technology – including 3D printing – to customise their products and services for better CX and a larger share of the market.

  1. Brands that Establish a Trusted Relationship Can Start Having Fun Again

Building trust was at the core of most businesses’ CX strategies in 2020 as they attempted to provide certainty in a world generally devoid of it. But in the struggle to build a trusted experience and brand, most businesses lost the “fun”. In fact, for many businesses, fun was off the agenda entirely. Soft drink brands, travel providers, clothing retailers and many other brands typically known for their fun or cheeky experiences moved the needle to “trust” and dialed it up to 11. But with a number of vaccines on the horizon, many CX professionals will look to return to pre-pandemic experiences, that look to delight and sometimes even surprise customers.

However, many companies will get this wrong. Customers will not be looking for just fun or just great experiences. Trust still needs to be at the core of the experience. Customers will not return to pre-pandemic thinking – not immediately anyway. You can create a fun experience only if you have earned their trust first. And trust is earned by not only providing easy and effective experiences, but by being authentic.

  1. Customer Data Platforms Will See Increased Adoption

Enterprises continue to struggle to have a single view of the customer. There is an immense interest in making better sense of data across every touchpoint – from mobile apps, websites, social media, in-store interactions and the calls to the contact centre – to be able to create deeper customer profiles. CRM systems have been the traditional repositories of customer data, helping build a sales pipeline, and providing Marketing teams with the information they need for lead generation and marketing campaigns. However, CRM systems have an incomplete view of the customer journey. They often collect and store the same data from limited touchpoints – getting richer insights and targeted action recommendations from the same datasets is not possible in today’s world. And organisations struggled to pivot their customer strategies during COVID-19.  Data residing in silos was an obstacle to driving better customer experience.

We are living in an age where customer journeys and preferences are becoming complex to decipher. An API-based CDP can ingest data from any channel of interaction across multiple journeys and create unique and detailed customer profiles. A complete overhaul of how data can be segregated based on a more accurate and targeted profile of the customer from multiple sources will be the way forward in order to drive a more proactive CX engagement. 

  1. Voice of the Customer Programs Will be Transformed

Designing surveys and Voice of Customer programs can be time-consuming and many organisations that have a routine of running these surveys use a fixed pattern for the data they collect and analyse. However, some organisations understand that just analysing results from a survey or CSAT score does not say much about what customers’ next plan of action will be. While it may give an idea of whether particular interactions were satisfactory, it gives no indication of whether they are likely to move to another brand; if they needed more assistance; if there was an opportunity to upsell or cross sell; or even what new products and services need to be introduced. Some customers will just tick the box as a way of closing off a feedback form or survey. Leading organisations realise that this may not be a good enough indication of a brand’s health.

Organisations will look beyond CSAT to other parameters and attributes. It is the time to pay greater attention to the Voice of the Customer – and old methods alone will not suffice. They want a 360-degree view of their customers’ opinions.


Ecosystm Predicts: The Top 5 Customer Experience Trends for 2021

The full findings and implications of The Top 5 Customer Experience Trends for 2021 are available for download from the Ecosystm platform. Create your free account to access more from the Ecosystm Predicts Series, and many other reports, on the Ecosystm platform

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Going Green: The Impact of COVID-19 on ESG Investing

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Environmental, social, and governance (ESG) ratings towards investment criteria have become popular for potential investors to evaluate companies in which they might want to invest. As younger investors and others have shown an interest in investing based on their personal values, brokerage firms and mutual fund companies have begun to offer exchange-traded funds (ETFs) and other financial products that follow specifically stated ESG criteria. Passive investing with robo-advisors such as Betterment and Wealthfront have also used ESG criteria to appeal to this group.

The disruption caused by the pandemic has highlighted for many of us the importance of building sustainable and resilient business models based on multi-stakeholder considerations. It has also created growing investor interest in ESG.

ESG signalling for institutional investors

The increased interest in climate change, sustainable business investments and ESG metrics is partly a reaction of the society to assist in the global transition to a greener and more humane economy in the post-COVID era.  Efforts for ESG standards for risk measurement will benefit and support that effort.

A recent study of asset managers by the investment arm of Institutional Shareholder Services (ISS) showed that more than 12% of respondents reported heightened importance of ESG considerations in their investment decisions or stewardship activities compared to before the pandemic.

In the area of hedge funds, there has been an increased demand for ESG-integrated investments since the start of COVID-19, according to 50% of all respondents of a hedge fund survey conducted by BNP Paribas Corporate and Institutional Banking of 53 firms with combined assets under management (AUM) of at least USD 500B.

ESG criteria may have a practical purpose beyond any ethical concerns, as these criteria may be able to help avoidance of companies whose practices could signal risk. As ESG gets more traction, investment firms such as JPMorgan Chase, Wells Fargo, and Goldman Sachs have published annual reports that highlight and review their ESG approaches and the bottom-line results.

But even with more options, the need for clarity and standards on ESG has never been so important. In my opinion, there must be an enhanced effort to standardise and harmonise ESG rating metrics.

How are ESG ratings made?

ESG ratings need both quantitative and qualitative/narrative disclosures by companies in order to be calculated. And if no data is disclosed or available, companies then move to estimations.

No global standard has been defined for what is included in a given company’s ESG rating. Attempts at standardising the list of ESG topics to consider include the materiality map developed by the Sustainable Accounting Standard Board (SASB) or the reporting standards created by the Global Reporting Initiative (GRI). But most ESG rating providers have been defining their own materiality matrices to calculate their scores.

Can ESG scoring be automatically integrated?

Just this month, Morningstar equity research analysts announced they will employ a globally consistent framework to capture ESG risk across over 1,500 stocks. Analysts will identify valuation-relevant risks for each company using Sustainalytics’ ESG Risk Ratings, which measure a company’s exposure to material ESG risks, then evaluate the probability those risks materialise and the associated valuation impact. ESG rating firms such as MSCI, Sustainalytics, RepRisk, and ISS use a rules-based methodology to identify industry leaders and laggards according to their exposure to ESG risks, as well as how well they manage those risks relative to peers.

Their ESG Risk Ratings measure a company’s exposure to industry-specific material ESG risks and how well a company is managing those risks. This approach to measuring ESG risk combines the concepts of management and exposure to arrive at an assessment of ESG risk – the ESG Risk Rating – which should be comparable across all industries. But some critics of this form of approach feel it is still too subjective and too industry-specific to be relevant. This criticism is relevant when you understand that the use of the ESG ratings and underlying scores may in future inform asset allocation. How might this better automated and controlled? Perhaps adding some AI might be useful to address this? 

In one example, Deutsche Börse has recently led a USD 15 million funding round in Clarity AI, a Spanish FinTech firm that uses machine learning and big data to help investors understand the societal impact of their investment portfolios. Clarity AI’s proprietary tech platform performs sustainability assessments covering more than 30,000 companies,198 countries,187 local governments and over 200,000 funds. Where companies like Cooler Future are working on an impact investment app for everyday individual users, Clarity AI has attracted a client network representing over $3 trillion of assets and funding from investors such as Kibo Ventures, Founders Fund, Seaya Ventures and Matthew Freud.

What about ESG Indices?  What do they tell us about risk?

Core ESG indexing is the use of indices designed to apply ESG screening and ESG scores to recognised indices such as the S&P 500®S&P/ASX 200, or S&P/TSX Composite. SAM, part of S&P Global, annually conducts a Corporate Sustainability Assessment, an ESG analysis of over 7,300 companies. Core ESG indices can then become actionable components of asset allocation when a fund or separately managed accounts (SMAs) provider tracks the index.

Back in 2017, the Swiss Federal Office for the Environment (FOEN) and the State Secretariat for International Finance (SIF) made it possible for all Swiss pension funds and insurance firms to measure the environmental impact of their stocks and portfolios for free. Currently, these federal bodies are testing use case with banks and asset managers. Its initial activities will be recorded in an action plan, which is due to be published in Spring 2021.

How can having a body of sustainable firms help create ESG metrics?

Creating ESG standard metrics and methodologies will be aided when there is a network of sustainable companies to analyse, which leads us to green fintech networks (GFN) of companies interested in exploring how their own technology investments can be supportive of ESG objectives. Switzerland is setting up a Green Fintech Network to help the country take advantage of the “great opportunity” presented by sustainable finance. The network has been launched by SIF alongside industry players, including green FinTech companies, universities, and consulting and law firms. Stockholm also has a Green Fintech Network that allows collaboration towards sustainability goals.

Concluding Thought

We should be curious about how ESG can provide decision-oriented information about intangible assets and non-financial risks and opportunities. More information and data from ESG data providers like SAM, combined with automation or AI tools can potentially provide a more complete picture of how to measure the long-term sustainable performance of equity and fixed income asset classes.

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Where is the Digital Economy Headed?

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In this blog, our guest authors Randeep Sudan and Yamin Oo talk about the pervasiveness of the Digital Economy, and the key trends that will determine its future trajectory. “That the world in 2030 will be very different from today is obvious. We may, however, be surprised by the extent and sweep of the change ahead of us.”

The Digital Economy – a term first coined by Don Tapscott in 1994 – is not easy to define or measure. At one end, it is limited to the production and consumption of digital goods and services. On the other end, according to the European Parliament, “The digital economy is increasingly interwoven with the physical or offline economy making it more and more difficult to clearly delineate the digital economy“. We are, however, witnessing the Digital Economy transitioning to an economy that is digital.

Given the pervasiveness of the Digital Economy, its future will be determined by the complex interplay of several trends. Some of the trends that illustrate the future trajectory of the Digital Economy are:

Technology

We will see AI becoming ubiquitous as it is leveraged in every sector and sphere of activity. According to one estimate, AI is estimated to contribute USD 15.7 trillion to the global economy by 2030, which is more than the current GDP of China and India combined! We are also likely to see rapid progress in technologies related to Extended Reality (XR) in the coming years. COVID-19 is accelerating this trend, as we can see from the offerings of companies like Spatial and MeetinVR that facilitate virtual business meetings. The analog world’s rendering into its digital twin will see us moving towards a metaverse – a virtual shared space imagined in Neal Stephenson’s novel Snowcrash. Some of the biggest names in the tech industry – Apple (Apple glass), Facebook (Oculus), Sony (Playstation) – are assiduously working towards this direction.

Given the importance of telecom infrastructure to the Digital Economy, 5G networks are being rolled out in countries worldwide (Figure 1). However, even as 5G is being deployed, the buzz around 6G is getting louder. 6G may transmit data 100 times faster than 5G and may see deployment by 2030 given the decadal cycles for telecom: 1G in the 80s, 2G in the 90s, 3G in the decade following 2000, 4G in the decade starting 2010, and 5G beginning in the 2020s.

Global 5G Deployments

The availability of high bandwidth, low latency networks could lead to newer applications and further breakthroughs in innovative technologies.

The Future of Work

With the rapid growth in automation and AI, we are likely to see significant labour market disruptions. Moreover, COVID-19 has been a watershed for the global economy – its impacts will continue to be felt for many years to come. According to the International Labor Organization, 495 million full-time jobs were lost in the first two quarters of 2020 due to COVID-19.  Lower and middle-income countries have suffered the most, with an estimated 23.3% drop in working hours – equivalent to 240 million jobs. 

A recent report from the World Economic Forum estimates that by 2025, 85 million jobs may be displaced due to automation and AI, while 97 million new roles may emerge. We will see significant changes and turbulence in labour markets across multiple industries and geographies in the years ahead. If we look at how the top ten skills required by the top 10 US companies have been changing over time, we get an indication of the Future of Work. Companies are more focused on “soft” skills, that are not easily addressed by AI & Automation.

We are also likely to see a shift from humans adapting to technology to technologies adapting to humans. For example, the acceleration in digital twins combined with advancements in XR could allow unskilled workers to do skilled jobs. AR could guide a worker to repair a piece of mechanical equipment without long years of previous training. Similarly, the emergence of ‘Low Code No Code’ (LCNC) applications will allow ordinary individuals to do tasks that previously required specialised training.

Climate Change

Scientists have long focused our attention to limit the carbon dioxide in the atmosphere to 450 parts per million to avoid catastrophic climate change. In 2016, the World Meteorological Organization reported this concentration had crossed 400 parts per million, leaving us with a shorter runway to prevent calamitous climate change. We are, therefore, likely to see increased efforts to tackle climate change in the decade ahead.

Digital technologies can impact the global climate agenda in multiple ways: smart grids, smart buildings, smart appliances, intelligent transport systems, shared mobility, and 3D printing, to name a few. Digital technologies will also allow new sources of renewable energy to be tapped. For example, the molten core of the earth is over 6,000°C. “Just 0.1% of the heat content of Earth could supply humanity’s total energy needs for 2 million years,” according to AltaRock Energy. Advances in the use of digital technologies that allow for precise directional drilling will allow for advanced geothermal systems to be established as reliable power sources.

Splinternet

Tech bloggers like Doc Searls and Stephen Lewis had begun to theorise about a Splinternet as early as 2008. There was a danger of governments carving the world into geopolitical blocks and creating technology barriers. China’s Great Firewall and the US’s recent responses under the Trump administration are likely to hurtle us in the direction of a fractured internet. We may end up with the US dominating the western internet and China dominating a competing block of countries. The Digital Economy’s evolution would fracture into different camps, making it very different from what it is today.

Tech Regulation

The most valuable companies in the world today are in tech. Seven of the top ten companies in the world by market cap in 2020 are tech companies.

The recent investigation into competition in digital markets undertaken by the US House Judiciary Committee observed: “Over the past decade, the digital economy has become highly concentrated and prone to monopolisation. Several markets investigated by the Subcommittee – such as social networking, general online search, and online advertising – are dominated by just one or two firms. The companies investigated by the Subcommittee – Amazon, Apple, Facebook, and Google – have captured control over key channels of distribution and have come to function as gatekeepers. Just a decade into the future, 30% of the world’s gross economic output may lie with these firms, and just a handful of others.

We have also witnessed the rapid diversification of data monopolies into other sectors. See, for example, the diversification of VC investments by Alibaba’s Ant Group over time. In 2015 they were investing in 5 areas, which has doubled in the last 5 years.  

The call for the regulation of big tech will gain momentum in the coming years. The European Union is likely to lead here, just the way just it did in the case of its General Data Protection Regulation.

Governments will also require data monopolies to share data. China mandates its automakers to share data generated by electric vehicles with a government research institute. This data is essential for public safety and planning battery-recharging stations. The Australian Government promotes the concept of sharing “designated datasets” that could include data held by the private sector that has significant community benefits. Similarly, France’s Law for a Digital Republic requires the sharing data by certain categories of the private sector. Such blurring of boundaries between public and private data will become more important.

We will also see the growing importance of data trusts. These are structures where data is placed in the custody of a “Board of Trustees” who have a fiduciary responsibility to look after the interests of data owners. Such data trusts might give individuals better control over their data.

Every aspect of the economy is being digitalised today. In the next decade we are likely to witness foundational shifts in how the Digital or Data Economy is structured. It will also see increasing risks as cyber threats grow exponentially from cybercriminals and state actors. That the world in 2030 will be very different from today is obvious. We may, however, be surprised by the extent and sweep of the change ahead of us.

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Ecosystm Predicts: The Top 5 Healthcare Trends for 2021

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The Healthcare industry has had to pivot completely this year and 2021 will see it emerge a transformed industry. The impact will be seen on policies, how ecosystems evolve, and most obviously on healthcare provider organisations. COVID-19 has shifted the business priorities of healthcare providers and how these organisations invest and use technology. There will be another reset in 2021. However, given the immense impact of the pandemic, it would be near-impossible to restrict the prediction to only one year; and several of the trends will firmly define the industry way beyond 2021.

Ecosystm Advisors Aga Manhao, Arun Sethuraman, Krish Krishnan and Sash Mukherjee present the top 5 Ecosystm predictions for Healthcare Trends in 2021. This is a summary of the Healthcare predictions – the full report (including the implications) is available to download for free on the Ecosystm platform.

The Top 5 Healthcare Trends for 2021

  1. The Impact of COVID-19 on Public Health Will Create New Opportunities Well Beyond 2021

The impact of COVID-19 will be on all levels. Increasing pressure from patients will challenge healthcare providers (from primary through to tertiary) throughout 2021. There will be larger global impacts as well – average nourishment is likely to go down in most countries, and there will be lower average (seasonal) immune health in many countries.

This is not all doom and gloom – there will be new business opportunities. Enterprises and innovators will find opportunities in:

  • Supply Chain Arbitrage. Continued asymmetrical supply and demand will drive the movement of healthcare related goods and services across geographies.
  • Investment. Investments in pharma/ vaccine/ diagnostics manufacturing and distribution will be driven more by short-term horizons, defensive capacity building, and supply security concerns. Technology and IP acquisition by pharma and medtech leaders will also accelerate.
  • Innovation. COVID-linked gaps in health, immunity, nourishment, and lifestyles will lead to new products within foods, supplements, medications, and pharmaceuticals; and in tech-enabled personal devices and health monitoring apps or systems.
  • New Businesses. We will see an upsurge in demand and supply of alternative medicines and devices as well, although these may still not be accepted in conventional medicine.
  1. Healthcare Policies Will Focus on Product & Manufacturing Security and Supply Chain Control

The COVID-19 crisis has exposed the need for better collaboration and visibility of external resources to handle unprecedented scenarios. Governments in countries that have done well to manage the crisis took the vital step of encouraging and being the hub for cross-agency collaboration. Having a siloed view of resources and the supply chain is not sufficient in combating larger challenges. Healthcare policy makers will work towards a more collaborative, AI-driven, supply chain.

Some of the world’s largest economies have already begun to take steps to reduce manufacturing and supply chain dependencies in pharma, vaccines, diagnostics and medical devices. What has shown up as opportunistic stockpiling or supply chain arbitrage will become more entrenched. Various governments will either incentivise or centralise the establishment of manufacturing and long-term supply contracts for their countries.

  1. 2021 Will be a Breakout Year for Community Health

COVID-19 has significantly disrupted current standards of care for chronic diseases world-wide.  Frequency and necessity of patient visits to hospitals and clinics for routine checkups and minor interventions are being evaluated by healthcare planners and providers. There are concerns about the increasing cost of providing basic services, allocation of healthcare capacity to higher priority needs, and the need to reduce risk of exposure to the vulnerable population.

Telehealth and Digital Health technologies have seen a marked increase in adoption during the pandemic, but the real effectiveness of these solutions to solve a healthcare delivery problem is still emerging. We predict 2021 will be a breakout year for Community Health, powered by these two technologies. There will be an increased focus on building resilient communities and early warning systems. Number of visits to hospitals and clinics for routine observations will drop by 15-20% or even more. Privacy and Data security concerns will increase, and this will also lead to better policy and practices to address these concerns. 2021 promises to be a better year for coordinated community care. 

  1. Healthcare Providers Will be More Tech-Dependent Than Ever

In 2020, healthcare providers’ technology investments took off on unexpected trajectories and they have digressed from their technology and transformation roadmap. Many solutions would have gone through an initial ‘proof-of-concept’ without the formal rigours and protocols. Many of these will be adopted for longer term applications.

Healthcare organisations had to pivot their technology spending when COVID-19 hit. There were several changes that were required to be made, including implementing operational measures to ensure staff safety and cutting down on non-essential expenses. When it comes to digital initiatives, the key focus areas were evolving service delivery and empowering employees with the right technology for care delivery – often remote. What providers did not have the time or resources for was to digitalise processes and retain focus on their entire patient demography – and not just those impacted by COVID-19. In 2021, we see a clear indication that not only will their priorities be different, healthcare providers will ramp up their technology investments in all areas.

  1. Medtech and Providers Will Find New Synergies

Medical devices which generate clinical data and/or are driven by clinical data will attract greater investment and higher R&D expenditure; and will either dominate or begin to set the direction for future consumer devices in the Healthcare space.

The popularity of telehealth and digital health will put pressure on healthcare providers to further draw data-driven insights from personal devices. They are likely to mandate the devices that they would be willing to use the data from They will have greater power to demand Interoperability and operating system convergences in the next few years from device developers and manufacturers.

2021 will see an increased use of devices such phones, bracelets and even anklets to track the spread of COVID-19. It will also see the transition of the smartphone to a medical device. The collection, sharing of data, running AI/machine learning will make our smartphones an integral part of remote patient management. 


Ecosystm Predicts: The Top 5 Healthcare Trends for 2021

The full findings and implications of The Top 5 Healthcare Trends for 2021 are available for download from the Ecosystm platform. Create your free account to access more from the Ecosystm Predicts Series, and many other reports, on the Ecosystm platform

Ecosystm Predicts: The Top 5 Healthcare Trends for 2021
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Policy Making in a Pandemic: Use of AI in SupTech

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Artificial Intelligence (AI) is becoming embedded in financial services across consumer interactions and core business processes, including the use of chatbots and natural language processing (NLP) for KYC/AML risk assessment.

But what does AI mean for financial regulators? They are also consuming increasing amounts of data and are now using AI to gain new insights and inform policy decisions. 

The efficiencies that AI offers can be harnessed in support of compliance within both financial regulation (RegTech) and financial supervision (SupTech). Authorities and regulated institutions have both turned to AI to help them manage the increased regulatory requirements that were put in place after the 2008 financial crisis. Ecosystm research finds that compliance is key to financial institutions (Figure 1).

Drivers for Cybersecurity and Regulatory Investments

SupTech is maturing with more robust safeguards and frameworks, enabling the necessary advancements in technology implementation for AI and Machine Learning (ML) to be used for regulatory supervision. The Bank of England and the UK Financial Conduct Authority surveyed the industry in March 2019 to understand how and where AI and ML are being used, and their results indicated 80% of survey respondents were using ML. The most common application of SupTech is ML techniques, and more specifically NLP to create more efficient and effective supervisory processes.

Let us focus on the use of NLP, specifically on how it has been used by banking authorities for policy decision making during the COVID-19 crisis. AI has the potential to read and comprehend significant details from text. NLP, which is an important subset of AI, can be seen to have supported operations to stay updated with the compliance and regulatory policy shifts during this challenging period.

Use of NLP in Policy Making During COVID-19

The Financial Stability Board (FSB) coordinates at the international level, the work of national financial authorities and international standard-setting bodies in order to develop and promote the implementation of effective regulatory, supervisory and other financial sector policies. A recent FSB report delivered to G20 Finance Ministers and Central Bank Governors for their virtual meeting in October 2020 highlighted a number of AI use cases in national institutions.

We illustrate several use cases from their October report to show how NLP has been deployed specifically for the COVID-19 situation. These cases demonstrate AI aiding supervisory team in banks and in automating information extraction from regulatory documents using NLP.

De Nederlandsche Bank (DNB)

The DNB is developing an interactive reporting dashboard to provide insight for supervisors on COVID-19 related risks. The dashboard that is in development, enables supervisors to have different data views as needed (e.g. over time, by bank). Planned SupTech improvements include incorporating public COVID-19 information and/or analysing comment fields with text analysis.

Monetary Authority of Singapore (MAS)

MAS deployed automation tools using NLP to gather international news and stay abreast of COVID-19 related developments. MAS also used NLP to analyse consumer feedback on COVID-19 issues, and monitor vulnerabilities in the different customer and product segments. MAS also collected weekly data from regulated institutions to track the take-up of credit relief measures as the pandemic unfolded. Data aggregation and transformation were automated and visualised for monitoring.

US Federal Reserve Bank Board of Governors

One of the Federal Reserve Banks in the US is currently working on a project to develop an NLP tool used to analyse public websites of supervised regulated institutions to identify information on “work with your customer” programs, in response to the COVID-19 crisis.

Bank of England

The Bank developed a Policy Response Tracker using web scraping (targeted at the English versions of each authority/government website) and NLP for the extraction of key words, topics and actions taken in each jurisdiction. The tracker pulls information daily from the official COVID-19 response pages then runs it through specific criteria (e.g.  user-defined keywords, metrics and risks) to sift and present a summary of the information to supervisors.

Market Implications

Even with its enhanced efficiencies, NLP in SupTech is still an aid to decision making and cannot replace the need for human judgement. NLP in policy decision is performing clearly defined information gathering tasks with greater efficiency and speed. But NLP cannot change the quality of the data provided, so data selection and choice are still critical to effective policy making.  

For authorities, the use of SupTech could improve oversight, surveillance, and analytical capabilities. These efficiency gains and possible improvement in quality arising from automation of previously manual processes could be consideration for adoption.

Attention will be paid in 2021 to focusing on automation of processes using AI (Figure 2).

Digital Focus for 2021 in Financial Services

Based on a survey done by the FSB of its members (Figure 3), the majority of their respondents had a SupTech innovation or data strategy in place, with the use of such strategies growing significantly since 2016.

Summary

For more mainstream adoption, data standards and use of effective governance frameworks will be important. As seen from the FSB survey, SupTech applications are now used in reporting, data management and virtual assistance. But institutions still send the transaction data history in different reporting formats which results in a slower process of data analysing and data gathering. AI, using NLP, can help with this by streamlining data collection and data analytics. While time and cost savings are obvious benefits, the ability to identify key information (the proverbial needle in the haystack) can be a significant efficiency advantage.


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Conversational AI Gets a Boost – Five9 Acquires Inference Solutions

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Five9, a cloud-based contact centre solutions provider announced the acquisition of intelligent virtual agent (IVA) platform provider, Inference Solutions for about USD 172 million. Five9 and Inference Solutions have been partnering for the last couple of years, with Five9 being a reseller for Inference Solutions’ IVA platform. The acquisition is expected to provide a boost to Five9’s AI portfolio, automate contact centre agent activities and provide AI-based omnichannel self-service solutions.

The need to drive greater automation in the contact centre is high on the agenda, and this acquisition demonstrates how important AI and automation is to contact centre modernisation. The old-fashioned ways of long wait times, being passed on through different menus on the IVR and being asked to repeat yourself through the older speech recognition engines is starting to not only frustrate customers but will become obsolete. Based on Ecosystm’s research, close to 60% of contact centres globally stated that investing in machine learning and AI is a top customer experience priority in the next 12 months.

Inference has come a long way since its inception at Telstra Labs

Inference Solutions (founded in 2005) was spun out of Telstra Labs. It has since expanded to the US and developed a suite of solutions in the IVA segment. They have a good partnership strategy with the leading telecom providers globally as well as the UC/contact centre vendors. Inference Solutions uses resellers such as service providers, UC, and contact centre software providers – and these include AT&T, Cisco (Broadsoft), Momentum Telecom, Nextiva, 8×8 and many others. The Inference Studio solution will see a new release in the next few months where the solution will come pre-built with the ability for the contact centre team to pre-load the contact centre conversations. These can be conversations that have been going on for 6 months or longer. The Studio solution will then be able to analyse and understand the underlying intent of the conversation, match the intent so that it can be used to auto train the bots accurately. That process of matching the intent and training is expensive and if you can automate some elements of that, it will bring the cost of the deployment down. Its solution integrates into NLP engines from Google, AWS, and IBM. In Australia they continue to work on patents in close partnerships with Melbourne University and RMIT. Throughout its journey, Inference has built a good base of customers in the US, UK, and Australia.

Five9 to accelerate on its vision of AI and Cloud

Contact centre modernisation is high on the agenda for many organisations and this will lead them to build AI and automation at the core of their customer strategies. The discussion spans across the CEO, Digital and Innovation, and the Contact Centre teams.

Five9 had acquired Whendu, an iPaaS platform provider empowering businesses and developers with no-code, visual application workflow tool, optimised for contact centres in November 2019, and Virtual Observer, an innovative provider of cloud-based workforce optimisation, also known as Workforce Engagement Management (WEM) in February of this year.

The pandemic has resulted in increased engagement of contact centres with customers. Companies are gradually looking for ways to automate tasks, deliver better communication, speech and text recognition, decipher languages, and implement solutions mimicking humans. As a solution to these challenges, IVAs are being viewed as efficient and effective digital workers for a modern contact centre. IVAs represent increased throughput, more accurate results, and better-informed agents.

Successful use cases have shown that conversational AI can reduce calls and repetitive queries by 70-90%. IVRs with monolithic, complicated menus will start becoming unpopular and force contact centres to embark on a modernisation and automation strategy. If we evaluate the shift in priorities after COVID-19, we see that organisations are ramping up their self-service capabilities and their adopt of AI and machine learning (Figure 1).  

Contact Centres Conversational AI

The acquisition will give Five9 a foothold in the Asia Pacific region with an initial focus on the Australia market. The Australia market is by far the most advanced cloud contact centre market in the Asia Pacific. Five9 gains a team of staff that will help them fuel the contact centre modernisation discussion across the Asia Pacific. As the region has a complex market, the need to work with local carriers and partners will be critical for further expansion. Five9 has made an important acquisition in building in IVA capability into its CCaaS solution.


Click below to access insights from the Ecosystm Contact Centre Study on visibility into organisations’ priorities when running a Contact Centre (both in-house and outsourced models) and the technologies implemented and being evaluated

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Ecosystm Predicts: The Top 5 Retail & eCommerce Trends for 2021

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The Retail industry has had to do a sharp re-think of its digital roadmap and transformation journey – Ecosystm research shows that about 75% of retail organisations had to start, accelerate, or re-focus their digital transformation initiatives. However, that will not be enough as organisations move beyond survival to recovery – and future successes. While retailers will focus on the shift in customer expectations, a mere focus on customer experience will not be enough in 2021. Ecosystm Principal Advisors, Alan Hesketh and Alea Fairchild present the top 5 Ecosystm predictions for Retail & eCommerce in 2021.

This is a summary of the predictions, the full report (including the implications) is available to download for free on the Ecosystm platform here.

The Top 5 Retail & eCommerce Trends for 2021

  1. There Will Only be Omnichannel Retailers

The value of an omnichannel offer in Retail has become much clearer during the COVID-19 pandemic. Retailers that do not have the ability to deliver using the channel customers prefer will find it hard to compete. As the physical channel becomes less important new revenue opportunities will open up for businesses operating in adjacent market sectors – companies such as food and grocery wholesalers will increasingly sell direct to consumers, leveraging their existing online and distribution capabilities.

Most customers transact on mobile device – either a mobile phone or tablet.  New capabilities will remove some of the barriers to using these mobile devices. For one, technologies such as Progressive Web Apps (PWA) and Accelerated Mobile Pages (AMP) will provide a better customer experience on mobile platforms than existing websites, while delivering a user experience at par or better than mobile apps. Also, as retailers become AI-enabled, machine learning engines will provide purchase recommendations through smartwatches or in-home, voice-enabled, smart devices.  

  1. COVID-19 Will Continue to be an Influence Forcing Radical Shifts

In driving the economic recovery in 2021, we will see ‘glocal’ consumption – emphasis on local retailers and global players taking local actions to win the hearts and minds of local consumers. There will be significant actions within local communities to drive consumers to support local retailers. Location-based services (LBS) will be used extensively as consumers on the high street carry more LBS-enabled devices than ever before. Bluetooth beacon technology and proximity marketing will drive these efforts. Consumers will have to opt-in for this to work, so privacy and relationship management are also important to consider.

But people still want to “physically” browse, and design aesthetics of a store are still part of the attraction. In the next 18 months, the concept of virtual stores that are digital twins will take off, particularly in the holiday and Spring clearance sales. Innovators like Matterport can help local retailers gain a more global audience with a digital twin with a limited technological investment. At a minimum, Shopify or other intermediaries will be necessary for a digital shop window.  

  1. The Industry will See Artificial Intelligence in Everything

AI will increase its impact on Retail with an uptake in two key areas.

  • Customer interactions. Retail AI will use customer data to deliver much richer and targeted experiences. This may include the ability to get to a ‘segment of one’.  Tools will include chatbots that are more functional and support for voice-based commerce using mobile and in-home edge devices. Also, in-store recognition of customers will become easier through enhanced device or facial recognition. Markets where privacy is less respected will lead in this area – other markets will also innovate to achieve the same outcomes without compromising privacy but will lag in their delivery. This mismatch of capability may allow early adopters to enter other geographic markets with competitive offers while meeting the privacy requirements of these markets.
  • Supply chain and pricing capabilities. AI-based machine learning engines using both internal and increased sources of external data will replace traditional math-based forecasting and replenishment models. These engines will enable the identification of unexpected and unusual demand influencing factors, particularly from new sources of external data. Modelling of price elasticity using machine learning will be able to handle more complex models. Retailers using this capability will be in a better position to optimise their customer offers based on their pricing strategies. Supply chains will be re-engineered so products with high demand volatility are manufactured close to markets, and the procurement of products with stable demands will be cost-based.
  1. Distribution Woes Will Continue

Third party delivery platforms such as Wish and RoseGal are recruiting additional international non-Asian suppliers to expand their portfolios. Amazon and AliExpress are leaders here, but there are many niche eCommerce platforms taking up the slack due to the uneven distribution patterns from the ongoing economic situation. Expect to see a number of new entrants taking up niche spaces in the second half of 2021, sponsored by major retail product brands, to give Amazon a run for their money on a more local basis. 

As the USPS continues to be under strain, delivery companies like FedEx in the US who partner with the USPS are already suffering from the USPS’s operational slowdown, in both their customer reputation and delivery speed. In 2021, COVID-19 – and workers’ unions – will continue to impact distribution activities. Increased spending in warehouse automation and new retail footprints such as dark stores will be seen to make up for worker shortfalls.  

  1. China’s Retail Models Will Expand into Other Markets  

China’s online businesses operate in a large domestic market that is comparatively free of international competitors.  Given the scale of the domestic market, these online companies have been able to grow to become substantial businesses using advanced technologies. All the Chinese tech giants – among them Alibaba, ByteDance, DiDi Chuxing, and Tencent – are expanding internationally.

China’s rapidly recovering economy puts those businesses in a strong position to fund a competitive expansion into international markets using their domestic base, particularly with their Government’s promotion of the country’s tech sector. It is harder to impose restrictions on software-based businesses, unlike the approach that we have witnessed the US Government take for hardware companies such as Huawei – placing constraints on mobile phone components and operating systems.

These tech giants also have significant experience in a Big Data environment that provides little privacy protection, as well as leading-edge AI capabilities. While they will not be able to operate with the same freedom in global markets, and there will be other large challenges in translating Chinese experience to other markets – these tech players will be able to compete very effectively with incumbent global companies. Chinese companies also continue to raise capital from US stock exchanges with The Economist reporting Chinese listings have raised close to USD 17 billion since January 2020.  


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The full findings and implications of The Top 5 Retail & eCommerce Trends for 2021 are available for download from the Ecosystm platform. Signup for Free to download the report.

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Ecosystm Predicts: The Top 5 Cybersecurity & Compliance Trends for 2021

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Ecosystm research finds that 47% of organisations re-evaluated cybersecurity risks and management making it the biggest measure undertaken by IT Teams when COVID-19 hit. There is no denying any more that cybersecurity is a key business enabler. This year witnessed cybercrime escalating in all parts of the world and several governments issued advisories warning enterprises and citizens of the increase in the threat landscape, during and post COVID-19. Against this backdrop, Ecosystm Advisors, Alex Woerndle, Andrew Milroy, Carl Woerndle and Claus Mortensen present the top 5 Ecosystm predictions for Cybersecurity & Compliance in 2021.

This is a summary of the predictions, the full report (including the implications) is available to download for free on the Ecosystm platform here.

The Top 5 Cybersecurity & Compliance Trends for 2021

  1. There will be Further Expansion of M&A Activities Through 2021 and Beyond

As predicted last year, the market is set to witness mergers and acquisitions (M&As) to consolidate the market. The pandemic has slowed down M&A activities in 2020. However, the market remains fragmented and there is a demand for consolidation. As the cyber market continues to mature, we expect M&A activities to ramp up over the next couple of years especially once we emerge from COVID-19.  Some organisations that understand the full impact of the shift to remote working and the threats it creates have embraced the opportunity to acquire, based on perceived value due to COVID-19. The recent acquisition of Asavie by Akamai Technologies is a case in point. Asavie’s platform is expected to strengthen Akamai’s IoT and mobile device security and management services.

  1. After a Year of Pandemic Leniency, Regulators will Get Stricter in 2021

The regulators in the EU appear to have gone through a period of relative leniency or less activity during the first few months of the pandemic and have started to increase their efforts after the summer break. Expect regulators – even outside the EU – to step up their enforcement activities in 2021 and seek larger penalties for breaches.

Governments continue to evolve their Compliance policies across broader sectors, which will impact all industries. As an example, in Australia, the Federal Government has made changes to its definition of critical infrastructure, which brings mandates to many more organisations. Governments have shown an acute awareness of the rise in cyber-attacks highlighted by several high-profile breaches reported in mainstream media. Insider threats – highlighted by Tesla, where an employee raised the allegations of bribery by unknown third parties in exchange for exfiltrating corporate information – will also lead regulators to double down on their enforcement activities.

  1. The Zero Trust Model Will Gain Momentum

Remote working has challenged the traditional network security perimeter model. The use of personal and corporate devices to access the network via public networks and third-party clouds is creating more opportunity for attackers. Organisations have started turning to a Zero Trust security model to mitigate the risk, applying advanced authentication and continuous monitoring. We expect the adoption of the Zero Trust model to gain momentum through 2021. This will also see an increase in managed services around active security monitoring such as Threat Detection & Response and the increased adoption of authentication technologies. With an eye on the future, especially around quantum computing, authentication technologies will need to continually evolve.

  1. The Endpoint Will be the Weakest Link

The attack surface continues to grow exponentially, with the increase in remote working, IoT devices and multicloud environments. Remote endpoints require the same, if not higher levels of security than assets that sit within corporate firewalls, and it will become very clear to organisations that endpoints are the most vulnerable. Remote workers are often using unsecure home Wi-Fi connections and unpatched VPNs, and are increasingly vulnerable to phishing attacks. IoT device passwords are often so weak that brute-force attackers can enter networks in milliseconds.

Although endpoint security can be dealt with through strict policies together with hardware or software authentication, the difficult part is to adopt an approach that retains a relatively high level of security without having a too negative an impact on the employee experience. Experience shows that if the security measures are too cumbersome, employees will find ways to circumvent them.

  1. Hackers Will Turn the Table on AI Security

Cybersecurity vendors are increasingly offering solutions that leverage AI to identify and stop cyber-attacks with less human intervention than is typically expected or needed with traditional security approaches. AI can enhance cybersecurity by better predicting attacks enabling more proactive countermeasures, shortening response times, and potentially saving cybersecurity investment costs. The problem is that the exact same thing applies to the hackers. By leveraging AI, the costs and efforts needed to launch and coordinate large hacker attacks will also go down. Hackers can automate their attacks well beyond the use of botnets, target and customise their attacks with more granularity than before and can effectively target the biggest weakness of any IT security system – people.

Already, phishing attacks account for many of the breaches we see today typically by employees being tricked into sharing their IT credentials via email or over the phone. As we move forward, these types of attacks will become much more sophisticated. Many of the deepfake videos we see have been made using cheap or free AI-enabled apps that are easy enough for even a child to use. As we move into 2021, this ability to manipulate both video and audio will increasingly enable attackers to accurately impersonate individuals.


Download Ecosystm Predicts: The top 5 Cybersecurity & Compliance Trends For 2021

The full findings and implications of The top 5 Cybersecurity & Compliance Trends For 2021 are available for download from the Ecosystm platform. Signup for Free to download the report .

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Juniper Acquires 128 Technology to Boost AI Expertise

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Juniper Networks has entered into an agreement to acquire Massachusetts-based 128 Technology for USD 450 million that will enhance its AI-driven enterprise networking portfolio. The deal is expected to close by the end of 2020. The combined portfolio of 128 Technology’s Session Smart™ networking and Juniper’s Mist AI platform will bolster Juniper’s AI expertise in SD-WAN technology.  

Ecosystm Principal Advisor, Ashok Kumar says, “Juniper Networks has been a major player in enterprise networking from the core to the edge of the network with SD-WAN, WLAN, and AI-driven applications aware network products. Juniper had strengthened their enterprise networks portfolio with the acquisition of WLAN vendor Mist Systems in 2019 which provided cloud-based management and an AI engine. With Juniper’s acquisition of 128 Technology the network transformation process in the industry will continue.”

The platform created by 128 Technology bases decisions on real-time sessions instead of legacy static systems and networking approaches. The newer system created through this by Juniper will use AI to automate sessions and policies for a full AI-driven WAN operation – from initial configuration to customisable actions across various levels, and AI-driven support.

In addition to this, the automation is expected to reduce overheads, minimise IT costs and deliver better client and user-experience through automated network optimised for client-to-cloud. The two companies also aim to optimise the network and user experiences for voice, 5G and collaboration. Juniper continues to evolve the enterprise networking portfolio adding to the acquisition of WLAN start up Mist Systems for USD 405 million last year. Juniper’s AI -driven SD-WAN and networking products and services for enterprises and end-users is a step towards smart LAN and WAN environments.

A recent study on The Future of the Secure Office Anywhere, conducted by Ecosystm on behalf of Asavie found that 56% of global organisations are looking to improve employee experience, as they look beyond the COVID-19 crisis. The feedback from over 1,000 business and technology leaders globally, also finds that 55% of the organisations are also focused on digital transformation. This will require a re-evaluation of enterprise network solutions, to give employees seamless access to company resources as they continue to work remotely.     

“Enterprise communications is being transformed to a user-centric, session-oriented distributed model from a legacy network-oriented centralised WAN model. In the new remote working environment of Office Anywhere, the traditional use of VPN in combination with first-generation SD-WAN will become an impediment going forward. Enterprises will need to re-design networks to address each end-user’s unique needs and their access to applications and all business resources as though they were a Branch of One.”

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