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SGAnalytics_Blog_Top Data Science Trends to Look Forward in 2023

Top Data Science Trends to Look Forward in 2023

The world of data never stands still; new technologies are constantly transforming at a much faster and more accurate pace. With new trends emerging, they are bringing along new thinking and innovation.   Businesses are transitioning to a data-driven business model, where decisions are made based on data-backed insights. The wave of digital transformation is sweeping every industry, and the trend will continue in 2023 and beyond. It assists businesses in reacting with certainty in the face of uncertain crises. Projections and trends are crucial to surviving in the constantly innovating global market. Data science, artificial intelligence (AI), and machine learning (ML) are critical in business as they improve the growth rate of a business.   Data science trends are slowly gaining the expected prominence in businesses. In 2023, the emerging data science trends will further equip businesses to integrate data-driven tools and insights. These trends will offer significant benefits for the industry as well as to the businesses based within. Here is a rundown of the significant trends that will influence how data science will drive business growth in 2023.   Read more: Data & Analytics Strategy: Must-Have Crucial Elements for Decision Making  Emerging Trends in Data Science in 2023  The Rising Popularity of Augmented Analytics  A critical data science trend, augmented analytics, is finding a significant place day by day. Augmented analytics employs machine learning (ML) protocols and artificial intelligence (AI) to transform how data analytics is processed, assembled, and generated. Augmented analytics tools are currently in trend as they help in automating tasks and insight solutions through complex algorithms. In addition, augmented analytics also helps in the refinement of data science platforms and embedded analytics. In 2023, the trend of augmented analysis is expected to experience varied developments, thereby becoming a significant factor in BI platforms.     Transforming Operations with Big Data Automation   Today, automation is transforming every sector globally. It has stimulated significant transformations in business, resulting in sustained proficiency. In the last few years, industrialization has experienced the best automation capabilities with big data analytics. The process of Analytic Process Automation (APA) promotes growth by offering prescriptive as well as predictive abilities along with data-backed insights. Through this, businesses have received efficient results at low costs. With Analytic Process Automation (APA), businesses can enhance their computing power and make the right computing decisions.   Data analytics automation is the perfect disruptive force that is helping businesses substantially by stimulating valuable data usage and productivity. In a recent survey, 48% of executives acknowledged that data analytics is crucial for businesses today. Some of the prominent big data analytic software include Apache Hadoop, Sisense, IBM Analytics, and SAP Business Intelligence Platform.   Read more: 7 Trends That BFSI Industry Cannot Ignore Anymore- Get Ready for 2023  Integration of Data-as-a-Service (DaaS)  Data-as-a-Service, also referred to as DaaS, is a technology that enables its subscribers to access as well as use digital files with the internet. Built on cloud technology, the DaaS industry has experienced significant growth since the pandemic. And it is still evolving. In 2023, they are estimated to reach a value worth $11 billion. DaaS is today considered the top data science trend that enhances the productivity of businesses.  DaaS facilitates an appropriate understanding of the benefits of data for the growth of businesses, especially in marketing. The significant highlights of the data-as-a-service trend are as follows:  The data stream can be accessed on demand, thus making data sharing effortless.  It is convenient to use as no special fees for accessibility are charged.  DaaS subscribers enjoy access to high-speed data.  The financial demand for DaaS is increasing due to the availability of its resources and affordability.     Real-Time Data Tracking to Build an Analytics Infrastructure   When searching for data-backed insights, it is more acceptable to understand and take into consideration the current trends. This is where real-time data comes into the picture. And businesses are becoming interested in sourcing valuable real-time data to make vital decisions. However, working with real-time data requires a sophisticated analytics infrastructure that is likely to increase expenses. This involves analyzing clickstream traffic from visitors to the website to identify and create new offers and promotions. This also involves monitoring transactions in real-time to watch out for warning signs or cyber fraud.  Read more: It's Time to Put Marketing at the Data Table. Why?  Social media platforms like Facebook analyze hundreds of gigabytes of data for various use cases for serving up advertising and preventing the spread of fake information. Data is providing many organizations with a competitive edge. Businesses with the most advanced data strategies are increasingly looking toward the most valuable and up-to-date data. And due to this reason, real-time data will be the most valuable big data tool for businesses in 2023.     Data Regulation and Governance  Data governance is also being perceived to be big news in 2023 as governments are formulating and introducing new laws to regulate the use of personal and other types of consumer data.   After the likes of the European General Data Protection Regulation (GDPR), the Canadian Personal Information Protection & Electronic Documents Act (PIPEDA), and the Chinese Personal Information Protection Law (PIPL), other countries are set to follow suit and introduce legislation that safeguards the data of their citizens. Recently, Gartner analysts predicted that by the year 2023, 65% of the world’s population would be protected by regulations like General Data Protection Regulation (GDPR).  This implies that governance will be a crucial task for businesses in the next 12 months, irrespective of where they are in the world. Businesses are implementing measures to process their internal data and handle procedures of documentation. For many, this will indicate auditing what information they have, how it is collected, where the data is stored, and what is done with the acquired information. While this sounds like additional work, in the long term, the idea will benefit both businesses and consumers. They will be able to employ this data to develop products and services that align with the needs of the consumers at prices they can afford.  Data governance manages data access globally. Data governance has played a vital role in enhancing the data protection of consumers. A new policy has also been introduced to improve data security, data handling, as well as consumer profiling. The law is referred to as the California Consumer Privacy Act (CCPA). These policies are assisting in elevating business to a greater extent. CCPA influences diverse business operations along with controlling the personal data of consumers. It also guarantees data security and protection. Data governance offers businesses the right to distinguish and comes with its own perks. A convenient tool to use, businesses are incorporating data governance to have good subordinates.  Read more: Data Fabric and Architecture: Decoding the Cloud Data Management Essentials  Final Thoughts  Data plays a major part in transforming businesses globally. Data science is enabling businesses to identify the current market trends and generate insights that drive better results. This is helping them develop a foundation that will aid in attaining the envisioned growth. Businesses need to adopt agile innovation in their disruptive business models to uncover customer insights.  In this era of rapid digital landscape evolution, data collection & analysis play a significant role in shaping the future of businesses, industries, and even whole market segments. To remain successful and relevant, data science is a vital component that will drive them in the future. By embedding data science with its integrated elements, industries can grow and survive in this competitive world. Due to this, businesses are agreeing that analytics, data science, and machine learning hold the potential to change different aspects of marketing and sales.  The upcoming data science trends will help individuals and businesses integrate the vision of the dynamic future in the tech market.   With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.                         A leader in Data Analytics, SG Analytics focuses on leveraging data management & analytics and data science to help businesses discover new insights and build strategies for business growth. Contact us today if you are looking to make critical data-driven decisions to prompt accelerated growth and breakthrough performance.   

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SGAnalytics_Blog_Digital Marketing Outlook Top Trends for 2023

Digital Marketing Outlook: Top Trends for 2023

Today, digital marketing is thriving in the business arena, and this rise in popularity is likely to continue in the years to follow. It offers businesses exceptional global exposure to reach unprecedented success. The existing and emerging digital marketing trends are set to transform the way businesses operate entirely.   For businesses, it is important to keep a close eye on where they are heading in the long term. While nobody can 100% predict what the future of marketing holds or will look like, industry professionals are incorporating useful insights to identify some of the underlying possibilities. They are meticulously planning their marketing activities based on what they are aware of from the start of the year to the minute changes that are altering the existing trends.  As we step into a new year, it is time to identify the changing digital marketing trends that will dominate the landscape. What trends will dictate the market? Which trends should businesses be on the lookout for? While this is exciting, it is equally confusing.   That is the reason why we have curated a list of hot digital marketing trends that will define the course of businesses in 2023. Keep an eye on these trends to stay ahead of your competitors.  Read more: Debunking the Myths - Does Innovation Holds Back Digital Transformation?  New Trends in Digital Marketing 2023  Strengthening Influencer Relationships  The digital marketing landscape in 2022 saw a rise in Influencer marketing. And seems like the trend is likely to grow in 2023. While initially, influencer marketing was the domain only for a few marketers, it has now taken over as a go-to strategy for every brand with an online presence. Companies that are collaborating with influencers are witnessing a great return on their investment through improved sales and brand awareness.  In 2023, developing long-term relationships with influencers will be beneficial for brands as well as their marketing strategies. Influencers with a large following and the ability to create content that can be collaborated with to design impactful marketing campaigns. However, businesses should be careful when choosing who they want to collab with as an influencer. Marketing campaigns can often fail because of the different audience bases or reach of the influence that may not comply with the brand.     Employing Innovative Solutions for Data Collection  In 2023, businesses will be expected to become more proactive when it comes to gathering data. By employing different practices, businesses will have to explore innovative avenues to collect information about their customers who can support their sales. This data will help brands gain consumer insights, thereby enabling them to influence the consumer's next business decision. Today, even the most basic forms are helpful in gathering valuable information that can turn browsers into buyers.  With CRMs like HubSpot, brands can input customer data such as their name, email address, and phone number and add them to the mailing list. This will help the sales team to garner a better assessment of the buyer's journey.  Read more: Tech-driven Enterprises in 2023: How will Technology Spending Deliver Value?  Video Marketing: Story-Driven Content Visualization  With smart speakers and voice searches making their way into the mainstream, 2023 is expected to see a surge in story-driven visualization. While readable content was considered more important than visuals and design, the scenario seems to be changing. In fact, while advancements in voice search are influencing the way brands create content, videos or visual content infused with the basics of brand storytelling will see a surge.  Marketers believe that today's consumers prefer visual content over plain text. The growth of image-focused platforms like Pinterest and Instagram is living proof. Visuals are easier to remember than written form content. In 2023, brands will start adding more data visualizations like infographics, images, and videos to make the content more interesting and attractive.  Personalized Marketing to Gain Prominence  In 2023, personalized marketing will finally gain its due prominence. It will emerge as an important element in marketing efforts, as businesses will compete for customers' attention. With the current market competition, consumers are demanding personalized experiences. In response to fulfill these demands, businesses will have to undertake activities to collect data on their customers and use it to create and offer a rather customized marketing campaign.  Marketers will have to adapt to this change in order to stay relevant. In 2023, simply creating effective campaigns will not be enough. They will have to ensure that their brand's content is timely as well as relevant. Businesses will have to incorporate AI-driven platforms into their marketing strategies that will assist them in automatically adapting to the content based on real-time data on their customer's preferences and behavior, thereby enabling brands to offer a personalized experience.     User Generated Content will be at the Center Stage  One of the vital aspects of the digital world, user-generated content (UGC), is enabling marketers to create, distribute, as well as connect with their audience. Consumers create a UGC rather than brands/companies. Brands are integrating user-generated content into their marketing strategy to create their own unboxing videos, makeup reviews, hashtags for photos, and much more. With user-generated content, brands can connect with their new audiences and be seen by them. It enables them to create a more personal connection with their existing customers. Consumers are more likely to trust user-generated content than the one created by brands. This trend will help businesses to take their authenticity to the next level in 2023. Brands will now start prioritizing authenticity in their marketing strategy.  Read more: With Subscriber Rate Declining, What Does the Future Hold for Netflix?  Real-Time Messaging/ Chatbots will Become Sophisticated  With real-time messaging platforms, brands can experience a great way to reach out to and interact with their customers efficiently. In today's age of instant gratification, brands need to undertake everything they can for their consumers to provide them with as much information as possible. Or else they might risk losing their consumers to their competitors. With chatbots, businesses can simulate human conversation and provide customer support to promote a product or service. With consumers defining the new norms, many new platforms are enabling businesses to provide better customer interactions.  In 2023, chatbots will become more realistic, making them an integral part of every marketing strategy. Chatbots will also be able to handle more complex queries raised by the consumer. This will help in freeing up customer service representatives, thereby enabling them to deal with more difficult issues or crises that demand instant response or gratification.  Key Takeaways  The digital marketing trends that will likely dominate the landscape in the next 12 months include consumer experience, employee engagement, and content visualization.  The definition of marketing is constantly changing and undertaking a broader role.  In 2023, marketing will move beyond branding and advertising. Marketers are now working in collaboration with other departments to build great customer experiences as well as to engage them for long-term relationships.  Read more: Curation ,Consolidation, and More Creation: Digital Media and Entertainment Trends for 2022  Keep up with the 2023 Digital Marketing Trends  With technology continuing to advance at a rapid pace, businesses are staying updated with the recent trends that are focused on transforming the digital landscape. However, there is also a pushback against the rise in digitization and automation of interactions between brands and their consumers. While technologies like artificial intelligence (AI) and data-driven marketing are continuing to grow, the focus is still on people, not technology.  The recent turn of events has compelled businesses to digitize their operations. Business leaders across sectors are integrating technology to run their commercial ventures. They are leveraging digital marketing to scale their presence in the digital medium extensively. However, it is important to understand that brand marketers do not need to try and incorporate all the trends at once. However, they need to be open to new opportunities and approach advancements with a collaborative mindset.  With the increasing advancements in marketing, it is safe to say that the upcoming trends will continue to transform the digital landscape as we step into 2023.  With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.     A leader in the Media & Entertainment space, SG Analytics helps leverage advanced analytics abilities to make authentic decisions and accelerate business growth. Contact us today if you are in search of media & entertainment solutions that enable businesses to solve problems by harnessing disruptive data, artificial intelligence, machine learning, and innovative technologies.    

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SGAnalytics_Blog_Generative AI - The New Venture Capital (VC) Gold Rush

Generative AI - The New Venture Capital (VC) Gold Rush

Artificial intelligence has come a long way in the last few years. While it was initially used mostly for analytical work, the dawn of generative AI is opening up a whole new wave of use cases for AI. Simply put, generative AI is the technology to create new content by utilizing existing text, audio files, or images by using data-intensive AI capabilities like deep learning and neural networks. With improvements in model and computational power and the availability of more data, AI is now able to recognize underlying patterns from a vast collection of digital sources to come up with the required output.      What’s New?  AI technology has become incrementally better since its inception. The quality of generative AI output has now come to the point that is meaningfully good for creators and businesses. For instance, before 2020, the majority of use cases of AI (or rather traditional AI) were in spam detection and translation. That has changed now. More and more creators and marketers are using generative AI outputs for writing emails and promotional blogs. For writing that requires more creativity, generative AI outputs are already being used as first drafts, which for the time being, require further refinement. Leading US-based VC firm Sequoia Capital estimates that as the generative AI models are further improved, the technology will be able to write final drafts as good as if not better than, professional writers by 2030.   Read more: Tech-Related Ethical Concerns Businesses Should Address in 2022  Fig 1: AI Models Keep Getting Better  Source: Sequoia Capital  Another reason why generative AI is the buzzword these days is the proliferation of open-source alternatives. For instance, Eleuther.ai’s GPT-NeoX-20B is an open-source alternative to OpenAI’s GPT-3 model for text generation and StabilityAI’s recently launched Stable Diffusion is the open-source alternative to OpenAI’s DALL-E 2 for images and videos. By democratizing AI, these open-source alternatives are making AI easily accessible and affordable. Some estimates even suggest a 100x drop in the last two months in the cost to generate images and a 10x drop in friction to generate output in the last six months.    Burgeoning Use-Cases  With AI models undergoing transformation changes, the use cases have expanded significantly, particularly in creative industries. Applications of generative AI in the advertising and marketing industry are huge and wide. Companies including Copy AI, Jasper, Copysmith, and Contenda are pioneers in copywriting.     Read more: Global Business Trends Outlook 2023  Fig 2: Generative AI Application Landscape   Source: Sequoia Capital  Additionally, generative AI has use cases in coding as well, with companies like GitHub, Debuild, Mutable AI, and Moderne working on solutions like code generation, web app builders, and code documentation. While current tools help developers work faster and more efficiently, giving consumers access to code could bring in a new customer base and expand the addressable market significantly.   Read more: The Next Tech Time Warp: How Will Artificial Intelligence Possibly Change the World?  More applications of generative AI lie in design, gaming, and social media. Typically, design prototype development for digital products is labor intensive. Generative AI start-ups can solve this issue, especially when there is labor constraint. In social media, generative AI start-ups can create new social experiences. Further, generative AI for chatbots has been gaining traction for a few years now.  The rapidly expanding adoption of these generative AI start-ups is also reflected in their growing numbers. For instance, OpenAI’s image generator DALL-E 2 has more than 1.5 million users, while Mid journey has 3+ million users on its official Discord server. Remarkably, Mid journey entered open beta in July 2022. In its first full year of business, Jasper has registered $35 million in revenue and aims to attain yearly revenue of $75 million by the end of 2022.   Read more: Forecast: Top Venture Capital Market Trends In 2023  VCs Eye Opportunity  Some investors are likening generative AI to the early days of the web, seeing it as a transformative platform shift. US-based VC firm Sequoia sees generative AI as a technology that could generate trillions of dollars of economic value. As the demand for AI-powered content generation accelerates, generative AI start-ups have been garnering significant VC attention despite a broader slowdown in the pace of VC funding. Jasper, an Austin-based start-up, recently raised $125 million in Series A funding at a $1.5 billion valuation. London-based Stability AI also raised $101 million in an oversubscribed round, with investors like Coatue and Lightspeed Venture Partners participating. In May, Hugging Face also raised $100 million in a Series C round at a valuation of $2 billion.  The backing from big is another stamp of approval for generative AI start-ups. Microsoft has made significant investments in OpenAI and is anticipated to enhance its OpenAI efforts this year. Additionally, Google and Meta developed a new artificial intelligence tool to produce a video from a simple text prompt. Such interest from big tech could also very well spark a wave of M&A in the generative AI space.   Even if generative AI output can’t yet match the human-generated output, businesses and creators see them as handy tools in a broader toolbox. Further, a large number of firms are using generative AI to improve efficiencies and speed in their operations, providing value for their customers. That said, businesses need to address ethical concerns, which are often associated with AI.     With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.                          A leader in the Technology domain, SG Analytics partners with global technology enterprises across market research and scalable analytics. Contact us today if you are in search of combining market research, analytics, and technology capabilities to design compelling business outcomes driven by technology. 

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SGAnalytics_Blog_Sustainability Outlook Top Emerging Trends in 2023 and Beyond

Sustainability Outlook: Top Emerging Trends in 2023 and Beyond

A business opportunity and a customer obsession enabler, sustainability is emerging as an integral part of businesses. Seeded with government investment, sustainability is transitioning industries into a green market revolution. Environmental sustainability today encircles technology, supply chain emission reductions, climate risk, and professional services.   As sustainability becomes a top priority for many consumers, brands are employing measures to support this growing demand for eco-friendly products and practices and reduce their impact on the environment. Brands are striving to combat the effects of the climate change crisis and their carbon footprint. The sustainability trends in 2023 are predicted to plunge beyond eco-friendliness. They also involve measures to enhance the working environment, supply chain emissions, employee well-being, and ethical reporting.  With collective awareness, businesses are igniting a revitalized push and integrating a more innovative approach to address climate change. Consumers are ready to act and support brands that follow as well as deliver on their promises. Some of the most impactful changes that businesses can anticipate in 2023 in environmental sustainability are as follows.  Read more: Spotlight on EV Battery Technology as the US looks to Challenge China’s Dominance  Emerging Trends in Sustainability in 2023  Transparency Sustainability Reporting  With many environmental issues seeing the light in recent years, in 2023 and beyond, it is predicted that more and more companies will be held accountable for their carbon emissions. Stakeholders and customers alike will demand a full rundown of where things stand and the measures organizations have been taking to tackle the wasteful practices within the business.   While tracking all climate emissions as a business is a tough task to handle initially, businesses are incorporating the much-needed change to make things happen. One standard that businesses will incorporate is the supremacy for greater transparency in sustainable reporting. The new carbon accounting standard is assisting in drawing in on the existing standards. The standard will be applicable across industries to clarify murky areas of scope 3 reporting, including remote work emissions data, thus transitioning industries into a new era of transparency. This framework is aimed to deliver reliable scope 1, 2, and 3 data to investors, shareholders, as well as customers, thereby qualifying organizations for credit and lending.  Some of the measures include appointing a chief sustainability officer and publishing transparent reports on the company website for the public. In 2023, governments will also start outlining transparency measures through various climate summits. Transparent reporting will help businesses in getting ahead of the curve.     Eco-friendly and Sustainable Workplaces   Brands are analyzing their workplace operations and their impact on their employees to comply with the current sustainability regulations. Top corporations like IKEA and Prada are embracing the Leadership in Energy and Environmental Design (LEED) standard — a globally recognized third-party metric to integrate sustainability with everyday business operations. Industries across different sectors are also ramping up their focus on the occupational health and safety of their employees and teams. They are now committing to enhancing the working environment for workers in offices as well as their supply chain operations. Diversity, equity, and inclusion (DEI) initiatives are also finding a place within the organization. In 2023, businesses will witness a rise in more sustainable practices to create equity for their team members, consumers, and communities.  Read more: Sustainability in Tech: 3 Ways for Companies to Become More Sustainable  Switching To Better Delivery Options for Fewer Emissions   With online sales soaring during the pandemic, carbon emissions experienced a rise due to a rise in delivery vehicles. This growth is now pushing industry leaders to explore environmental delivery methods, making it a top trend in sustainability in 2023. The final stage of the shipping and delivery processes are also contributing to the rising carbon emission. Due to this reason, brands are switching to electric vehicles (EVs), drones, and cargo bikes to reduce their carbon footprint.  General Motors recently launched a startup name 'BrightDrop,' which employs the latest technology to offer - all-electric first -and last-mile products and services. Top corporations like FedEx and Walmart all use their services.  In association with Mercedes-Benz, Amazon is adding electric vehicles to its European fleet of deliveries.  Online shopping is helping the environment by reducing the tips of consumers to the store. Retailers moved their businesses online during the pandemic and have no plans of reopening their physical locations anytime soon.     Data and AI to Boost and Drive Sustainable Projects  The efficient use of cloud technology and data are assisting in fuelling a sustainable future. AI has proven essential to reduce greenhouse gas emissions. AI is also aiding in precision agriculture, enhanced weather as well as disaster prediction & response, and much more. A PwC report estimated that AI can help in reducing worldwide greenhouse gas emissions by 4% in the year 2030. Google's AI engine is offering public sector agencies and researchers' data to enhance climate resilience. Firms are now able to analyze their footprint as they do not have the required information. Industries, as well as retailers, are now recognizing these benefits. Amazon is actively employing AI for its machine learning-based systems.  Read more: ESG Score - Definition, Process, Implications & Purpose  The Rise in Sustainable Practice: Reuse and Recycle   Retail generates a lot of waste, and the problem is only getting worse. The average e-commerce return rate is perceived to be 23.44%. That indicates that one in four parcels gets returned. This has pushed packaging waste to an all-time high. Cutting down on packaging waste will be one of the top priorities for brands in 2023.  Zabka, a European retailer brand, announced their plans to make their packaging recyclable by the year 2025. Many fast-fashion brands are implementing demand planning to accurately predict demand for seasonal items to tackle the issue of waste.  Another significant way to downsize waste is with a circular economy. This model fosters the reusing and recycling of existing materials. Many brands are now showing their interest in integrating circular strategies into their operations. Ikea committed to becoming fully circular by the year 2030. McDonalds and Starbucks are also hoping on this trend and seeking avenues to expand their reusable cup programs.     The Sustainable Cloud Revolution  In addition to AI, cloud technology, including Amazon Web Services (AWS), has been widely enabling companies to meet their sustainability goals. Cloud computing is leading to a greener tech transformation. With a focus on optimization and efficiency, cloud providers are designing and operating sustainable and low-cost workloads. This technology is helping brands battle their carbon emissions, reduce energy consumption, and support overall waste reduction measures.  AWS is working to achieve the goal of switching to 100% renewable energy by 2025. However, Amazon isn't the only cloud technology provider that is contributing to the cause. Microsoft's Cloud for Sustainability is assisting companies in managing their environmental goals. The cloud-operated data centers are considered to be more energy efficient than traditional enterprise data centers.  Read more: The ESG Rating Phenomenon: A Guide to Understand ESG Ratings  Building a Greener and Sustainable Future  While previously sustainability was considered as nice to have, in 2023 and beyond, attitudes of brands are shifting towards accountability. The pandemic shifted the focus on sustainability and clean energy. While sustainability was a general concern before, it is now a major focus of every brand. Hence there couldn't be a better time than now to integrate where businesses are and what improvements are to be made in the shorter and longer term to reduce their carbon footprint.   Brands of all sizes are taking action to overcome the ongoing climate change crisis. It is no longer a part of the brand's mission statement but is emerging as a collective foundational principle that is compelling them to take necessary actions.   Brands are now developing new sustainable strategies. They are ramping up efforts to decrease their environmental impact by switching to more efficient technology. This empowers them to ensure their staff's well-being while conducting business transparently. In 2023, brands not prioritizing sustainability will likely find themselves left behind in this competition.  With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.                         A leader in ESG Services, SG Analytics offers bespoke sustainability consulting services and research support for informed decision-making. Contact us today if you are in search of an efficient ESG integration and management solution provider to boost your sustainable performance.  

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SGAnalytics_Blog_Forecast Top Venture Capital Market Trends In 2023

Forecast: Top Venture Capital Market Trends In 2023

Fintech experienced a rather upward swing in 2021 when it came to funding. However, these venture capital numbers fell in 2022. And the existing scenario is expected to continue in 2023 as well. However, the retreat from this is more about strategy than perceived weakness within the industry.  The fintech venture capital marketplace is looking strong in 2023. However, it may not repeat the record-breaking growth of 2021. While many of the drivers are in place for growth, investors are exploring new early-stage deals that demand less investment.  In 2021, fintech solutions experienced a favorite investment of venture capitalists that accounted for more than $130 billion in venture funding. Moreover, fintech venture investment increased by more than 175% from 2020 to 2021. However, 2022 was considered a turbulent year on many fronts. The sustained pandemic outbreak, war-induced energy crisis, crypto market crash, and constantly changing market conditions - all became the new normal for businesses.  Read more: How is Multi-stakeholder Assessment Helping to Create Long-Term Sustainable Value?  The Fintech Funding Scenario In 2022  The drivers of Fintech investment in 2021—convenience, security, and flexibility- experienced upward growth in 2022. While fintech investments are unlikely to reach the highs of 2021, venture capital investors still seem interested and are modifying strategies to match the flow of the markets. VCs are eying new early-stage deals. Startups and other smaller fintech firms are adopting more agile operations to weather the existing market conditions due to rising interest rates, inflation, and other issues. The recent fintech news is indicative of a global shift in the venture capital and investment market. In India, fintech assets are growing and are expected to hit the $1 trillion mark in 2030, demonstrating growth outside standard regions.  Looking forward, it can be anticipated that global economies will undergo further changes in the way people live and interact with one another. Regarding the changing landscape of the fintech venture capital industry, the trends that will drive the course in 2023 are listed below.  Where is the Fintech Venture Investment Market Headed in 2023?  With growth still occurring in 2023, venture capital investments and fintech companies will explore and opt for stable moves rather than aggressive ones. While 2021 and 2022 experienced a high-risk, high-reward scenario, 2023 will see a more conservative approach. How will the venture capital investment market grow in 2023, and what can investors expect for the upcoming trends? Let's explore the trends that will continue to drive evolution in this space.     Venture Capital Market Trends 2023  Significant trajectories for ESG-focused Fintech Products  Environmental, social and corporate governance, also known as ESG, is emerging as a domain that is attracting huge attention and an influx of investment funds. ESG funds experienced a record inflow in 2022. Bloomberg estimated that global ESG assets are likely to surpass the $53 trillion mark by the year 2025. With investors, governments, and consumers continuing to pressure ESG missions in investments, venture capital firms will experience a surge in sustainable investments. Investors in ESG funds must chase opportunities that align with the vision of transparency in ESG investing. Investment in ESG funds is becoming more common and even a mandate in many cases.  Read more: How Fintech Companies are Revolutionizing B2B Payments  Investors are now willing to ride this wave of the latest fintech trends, along with being socially responsible. Fintech venture capitalists with ESG mandates are also reaping the benefits by uniquely positioning themselves for exponential growth.  Fostering Deal in Underdeveloped Areas  On many levels, fintech venture capital has been a financial liberator. From apps to investment structures, they are assisting in creating more accessibility for consumers at all income levels. They also enable investors to foster deals in underdeveloped regions. Fintech venture capital is driving evolution that is being considered a revolution. As a result, center capitalists are expecting to see a disruption in the traditional investment markets and practices in 2023.  Growth in M&A Activity  With the tech space continuing to evolve at a robust pace, it is leaving a trail of opportunities for investors in innovation's wake. Venture capital investors are exploring the new avenue and offering their backing to foster M&A activities. With investors' continuous support, startups are seeing healthy M&A propositions for all types of selling in the fintech markets.  A Rise in Embedded Services  With consumer demands for convenience and flexibility rising, businesses are embedding financial services into their processes. Investment and savings apps and automated invoicing solutions are leasing the investment front. While it is impossible to conclude how things will pan out for venture capital in the year 2023, it can be inferred that the industry trends pertinent to this sector are likely to have a profound impact on business. Embedded finance services and alternative financing are some of the trends venture capitalists should keep a close eye on.  Read more: Fintech in the US: The Top 8 Players to Look Forward to in 2022  The Dawn of New Investment Opportunities    The latest data suggests a slowdown. In the initial six months of 2022, venture capital investment in fintech companies in the UK fell to $9.6bn. This was perceived as a reduction of two-thirds compared with the same period in 2021. For the fintech venture capital market, a long-term secular growth story still needs to play out. While a moderate funding environment seems plausible, investors agree that since the pandemic, the sector has been experiencing a more linear trend line when it comes to funding volumes.   The focus has been re-shifting on many fintech businesses. While it is hard not to see how venture capital financing of fintech will be driven by interest rate movement, the year 2023 is likely to experience much progress and will continue to move upwards. In the longer term, a sustained focus will enable fintech to solidify its long-term story.   With the world still getting a grip over the rising interest rates, soaring inflation, and ongoing geopolitical strife, how is the venture capital market transition coming along?  Key Takeaways:  Venture capitalists need to recognize the requirement for working together, as new fintech startups and established names are striving to work together to redefine the financial industry.  The big names in the financial sector can also opt to invest in venture capital startups to gain a foothold in this digital-only banking industry.  Going into a transparent partnership is considered a fruitful option by many.  Read more: Ways Private Equity and Venture Capital Firms can Protect Themselves from Cyber Risks  In Conclusion  The future of venture capital investment is moving from a monolithic system to a hybrid multi-cloud architecture. This involves the integration of data analysis and AI products to offer a seamless experience and extreme digitalization within the investment ecosystem.  However, despite the chaos and uncertainties brought in by COVID-19 upon economies worldwide, fintech venture capitalists across the globe are reporting growth on average. While the growth is not the same for all regions, the investment industry is taking quick action to respond to the challenging dynamics of the market by tweaking its products and services or by offering new ones based on the current market conditions.  Yet, fintech venture capitals are still contended due to the significant headwinds in operations, fundraising, and regulatory challenges globally. Before the pandemic, venture capital startups were facing difficulties in funding as investors were choosing to prioritize fintech with established business models. There have also been interesting cuts and the slowdown of economies that fintech is facing.  However, on the upside, experts believe that the future of the fintech venture capital industry will take an advantageous turn and create new opportunities. Global economies are now opening up to the virtual scramble of new investment standards.  All in all, the future of fintech venture capital looks bright. While the 2023 funding totals may not rival the desired growth, fintech will still remain a top priority for VC investments.  With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.                         A leader in the Venture Capital space, SG Analytics partners with global companies and assists them in acquiring and realizing strategic value from their investments. Contact us today if you are in search of an investment research firm to leverage custom research support across a broad range of asset classes and enhance your investment decisions.  

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SGAnalytics_Blog_Black Friday 2022

Black Friday 2022: Will Inflation Impact Holiday Shopping for Consumers?

Predicted to be the busiest shopping day, Black Friday attracts several shopping visits for the holiday season in the U.S. Black Friday is positively the biggest shopping day of the year. There is a ritual of shopping on Black Friday, making it an occasion as much as a day to buy something.  Shopping visits to a retail store year-to-date for 2022 are expected to be flat compared to last year for the same period. However, in the years leading to the pandemic, foot traffic to retail stores was trending down about 5%. Taking this into consideration, 2022 being flat can be considered a positive sign.  Considering the fuel prices in 2022, many retailers are reporting that customers are making fewer trips to the stores and bundling purchases to spend more money per trip. While inflationary pricing may not have significantly impacted consumer spending, the total retail sales went up 9.9% in August 2022.  The steady organic improvement in shopper visits indicates that inflationary pricing may not impact this year's holiday shopping visits. However, the Fed interest rate hike may deter some shoppers from spending more on holiday purchases.  Read more: Sustainability Data Strategy: Top Key Components for a Positive Impact  List of Busiest Holiday Shopping Days in the U.S.:   November 25, Friday – Black Friday  November 26, Saturday – Saturday after Black Friday  December 3, Saturday – First Saturday in December  December 10, Saturday – Second Saturday in December  December 17, Saturday – Super Saturday  December 18, Sunday – Sunday before Christmas  December 21, Wednesday – Wednesday before Christmas  December 22, Thursday – Thursday before Christmas  December 23, Friday – Day before Christmas  December 26, Monday – The day after Christmas  On average, the above-mentioned busiest holiday shopping days in the U.S. account for roughly 40% of all retail holiday traffic. However, retailers are expecting larger numbers this year, as the soaring gas prices will lead to more shopping intensity on the busiest days. This will enable the shoppers to make fewer individual trips. In a recent shopper survey, respondents stated that they plan to visit more retail stores for the Black Friday holiday sale. This can be considered a great sign for physical retailers.  The Big Shopping Event: Will Black Friday 2022 be a Hit or a Miss?  The day after Thanksgiving, Black Friday lands on November 25 this year. While that is still days away, holiday sales have already begun. However, they are only scratching the surface. There is still plenty of seasons as well as chances to save money. Looking ahead at this year's Black Friday, what can shoppers expect, taking into consideration the rising prices and other concerns?  Here's what experts are predicting about the big shopping event will is right around the corner.  Read more: A Critical Overview of Big Data and Bigger Dilemmas for Enterprises  Inflation to Impact Holiday Deals  Inflation drove the cost of all goods by 8.2% between September 2021 and September 2022, as per the data from the Bureau of Labor Statistics. Holiday shoppers are now counting on discounts to offer much-needed relief. However, inflation is now taking a toll on retailers, as well. Stores are suffering equally. While their fixed costs remain high, the revenue graph is shrinking. They are not able to afford to offer deep holiday deals.  Inflation has hit certain categories harder as compared to others. For example, food prices are on the rise in comparison to clothing prices. In this year's holiday deals, shoppers will find that the quality of deals is likely to be dependent on what they buy. Many say that while retailers are still touting plenty of bargains, the savings may not live up to the holiday deal hype.  This holiday season will see higher prices than what the scene has been in the past, and promotions can certainly help offset them. However, inflation will push prices on a higher spectrum for retailers, and they will have to pass that cost on to the end consumer.  At the same time, in certain cases, the impact is expected to be subtle. There is a possibility of retailers charging higher delivery fees, or the shoppers may get less for their money's value considering the shrinking inflation. However, in both cases, the product's prices will likely remain the same, but the size or quantity may reduce.      Supply Chain Issues are likely to Resurface  Shipping backlogs, along with product shortages, made shopping a challenging holiday task last season. While inflation may be grabbing all the headlines this year, it is smart to say that the supply concerns are still not completely behind us.  The supply chain is a huge question mark for businesses. A lot of these crises are arising due to the war in Ukraine and how it is impacting the whole world. Shipping, oil and gas prices, and supply lines from China, have all been hit. However, retailers are trying to be better prepared to avoid empty shelves. Many are adjusting their ordering strategies and timelines to avoid any possible hiccups.  Supply chain obstacles can also benefit bargain hunters. With delayed shipment arrivals along with declining consumer demand, stores have been left with excess inventory in recent months. Some retailers are stuck with inventory that consumers are unwilling to buy. These products will probably go on the deepest discounts during the Black Friday sale. However, these products may not fit the ideal Black Friday gift-shopping bill.  Read more: How are Tech Innovations helping Businesses to Survive the Economic Downturn?  Holiday Sales are Happening Early  Previously the day after Thanksgiving was considered a mark to start the holiday shopping season. Despite Black Friday sales having increased earlier and earlier over the last few years, 2022 is no exception. This year, Target launched its holiday season discounts with the Target Deal Days event early in October, several days before as compared to 2021. Amazon's members-only Prime Early Access Sale started on Oct. 11 and 12. Huge events like these are expected to pop up later in October or early November. For consumers to shop, retailers are experiencing that consumers are taking some of the pressure off to complete all of their holiday shopping towards the end of the season. Retails are witnessing that holiday sales are expected to continue in the next couple of months.  This holiday season is providing shoppers with plenty of opportunities to find exciting deals. While some retailers are sitting on some of their best promotions as we get closer to Black Friday, there is no time to wait. It is in consumers' best interest to start thinking about shopping early for them to get great deals and discounts. They are now making a move to avoid the last-minute hassle by either selling out or not offering discounted rates later in the season.  Early shopping has strapped customers to spread out their spending and save their holiday budgets. At the same time, retailers, such as Target and other top brands, are letting shoppers request a price match if the item they wish to buy goes on sale for less later in the season.  Consumer Loyalty will Pay off   With shoppers still dealing with concerns over inflation and rising interest rates, retailers are more focused on consumer retention to bring in more sales. Consumers who are members of loyalty programs are expected to benefit from the exclusive holiday offers, as they will gain early access to sales, discounts, gift vouchers with purchases, and other sorts of benefits.  Read more: How Fintech Companies are Revolutionizing B2B Payments  To Sum Up  High inflation is impacting the way people shop during the holidays. People are reevaluating and recalculating their purchase options as well as how much they want to spend on gifts and spreading out their Christmas shopping. Consumer Reports have stated that this has led to retailers starting to offer holiday deals earlier than ever. The Consumer Price Index for September demonstrated that the consumer is still paying around 6% more for commodities compared to last year. And these statistics are making holiday shoppers nervous.  With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.       A leader in Data Analytics, SG Analytics focuses on leveraging data management & analytics and data science to help businesses discover new insights and build strategies for business growth. Contact us today if you are looking to make critical data-driven decisions to prompt accelerated growth and breakthrough performance.                       

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SGAnaltyics_Blog_Inflation Reduction Act Puts Spotlight on CleanTech

Inflation Reduction Act (IRA) Puts Spotlight on CleanTech

The Inflation Reduction Act (IRA) is an unprecedented boost to the renewable and cleantech sectors and an ambitious “make in America” project. At its core, the act seeks to spur innovation and improve industrial productivity. It will allocate nearly $370 billion toward energy security and the renewable sector over the next decade. In addition to helping accelerate the transition to clean energy and move toward carbon neutrality, the bill will be a big shot in the arm of the startups and broader VC ecosystem in the clean tech space.   Furthermore, with the IRA, the US aims to re-shore as well as strengthen local supply chains across technologies such as solar, wind, carbon capture, clean hydrogen, and energy storage. Among clean tech, (1) storage devices, (2) clean electricity, (3) and carbon capture garner the highest funding and will play a pivotal role in the transition to clean energy.   Read more: How are Impact Investors Tackling the New Opportunities in Climate Investment?  Figure 1: Key Tax Credit Modifications    Source: McKinsey  “We have to outcompete China and in the world, and make these technologies here in the United States—not have to import them.” Joe Biden, US President.  Energy Storage  Energy storage is critical to transitioning from fossil fuel-based energy to renewable energy and underpins a range of industries, including mobility. As such, the market is expected to rise fifteenfold by 2030, per BNEF projections.   Read more: Private Equity Investment: 2022 Trends in Review  While China accounts for just 13% of raw lithium, it dominates lithium processing for the battery-grade chemicals market with a 60% share, per Benchmark Mineral Intelligence. The IRA will help new indigenous startups bring in much-needed innovation in the industry to reduce America’s dependence on Chinese and other Asian producers. The US, with investments and incentives, aims to raise mining production from roughly 1% to over 10% in the next six years.   Figure 2: Aggregate Energy Storage Installations    Source: BNEF  EnergyX, NEI Corp, and Sitration Inc are some of the startups coming up with breakthrough technologies in this space. Additionally, other startups such as Cadenza Innovation, EnPower, Prietto, and Lionano are pioneering disruptive technologies to produce better and more efficient Li-ion batteries.   Figure 3: Key Startups in the Lithium Extraction and Battery Technology Space  Source: CB Insights, StartUs Insights, SGA  Read more: Spotlight on EV Battery Technology as the US looks to Challenge China’s Dominance  Clean Electricity  The Russia-Ukraine conflict and the ensuing energy crises have irreversibly moved the needle towards a globally shared belief to accelerate the transition to clean energy. The US, with its $70 billion allotment to the clean electricity space, is doubling down on reaching the 2050 carbon neutrality goals.  The allocation to clean electricity can potentially catalyze the energy sector delivering up to 550 GW of additional clean power from 2022 to 2030, per estimates from ACP. This, combined with the existing 211 GW of clean power, could lead to nearly 40% of the total supply coming from renewable and energy storage systems by 2030.  Figure 4: Clean Power Capacity Installations – Annual   Source: American Clean Power  The surge in clean power will have a cascading effect on the broader economy as well, creating 550K in clean energy jobs and adding up to $500 billion to the U.S. GDP by 2030. Additionally, the 40% transition to clean electricity by 2030 will likely contribute to reducing carbon emission levels to roughly 33% of the 2005 electric-sector emissions levels.   Figure 5: IRA’s impact on Clean Energy Sector  Note: Capital investment from the private sector  Source: American Clean Power  Read more: The Rise of Sustainable Finance: 2022 Impact Investment Trends  Carbon Sequestration  The IRA provisions regarding controlling carbon emissions will turbocharge the sector. The slew of measures, including higher subsidy rates per metric ton, streamlined process to receive credits, and expanding the scope to allow smaller projects to qualify for carbon capture credits, will be a game changer for the sector. For instance, the increase in subsidy to $85 per metric ton for capturing CO2 from polluting sources will make carbon capture projects financially feasible even for industries with lower CO2 concentrations, such as cement plants. Additionally, IRA has also lowered the minimum capture requirement to 1,000 tons, which has companies such as Frontier Carbon Solutions and Switzerland-based Climeworks excited.   According to the Carbon Capture Coalition, the IRA and the Bipartisan Infrastructure Law will very likely transform the carbon capture industry thrusting it into the mainstream. The act will also boost emerging startups and help them raise more investments that are developing breakthrough technologies for capturing CO2 from the air.  Heirloom, a carbon capture company, which recently signed an agreement with Microsoft to sell carbon removal credits, has witnessed increased demand.   Through IRA, the Biden administration aims to incentivize private sector investors to increase investments in the often-capital-intensive cleantech sector. With IRA’s 10-year timeline, the government is incentivizing investors to support venture startups that take an average of 7-10 years to reach scale. According to the head of investment at Bill Gates’ climate fund, the act could lead to the creation of nearly 1,000 new startups in the cleantech space.  With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.                          A market leader in Investment Insights, SG Analytics assists in strengthening investment decisions by leveraging custom research support. Contact us today if you are in search of an investment research firm that offers tailored research support across a broad range of asset classes.

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SGAnaltyics_Blog_Global Business Trends Outlook 2023

Global Business Trends Outlook 2023

Industries have been facing huge challenges and undergoing an incredible number of transitions over the last few years. And looks like these changes won’t slow down in 2023. Businesses will be dealing with the aftereffects of the pandemic, Russia’s invasion of Ukraine, ongoing economic challenges, and fast-evolving technologies. Let’s explore the top business trends that will impact the way businesses work in 2023.  Emerging Business Trends in 2023   Diverging markets are opening up new opportunities for new market players. In 2023, the focus will be on connecting the right people to do the work that needs to be done effectively.  But how are businesses facilitating making work accessible to all in a way that sparks productivity?  Read more: An Experiment on Effect: How Virtual Technologies like Metaverse Transform Our Way of Life  Onward Growth of Digital Transformation  In 2023, businesses will experience the continuation of innovations and developments in transformative technologies, including artificial intelligence (AI), cloud computing, blockchain, the internet of things (IoT), virtual and augmented reality (VR/AR), and fast network protocols like 5G. These transformational digital technologies, however, cannot exist in isolation from each other, thus enabling businesses to blur the boundaries between them. Businesses are combining these technologies in ways that will enable them to enhance each other. This is bringing businesses closer than ever to the point where they can create intelligent enterprises with systems and processes that support the menial and mundane tasks in the most efficient way.  To prepare for this, businesses need to ensure that they embed the right technology in their processes and across every area of operations. These technologies will impact every business and industry, enabling businesses to drive effective sales and marketing, attract better customers, and establish more efficient supply chains, products, and services. They will have to align their operations and strategies with customer needs and streamline manufacturing processes. In 2023, these barriers to accessing them will be lower than ever.      Sustainability-driven Mechanism  The world today is waking up to the effects of climate disasters. Today, they pose a bigger challenge than anything humanity has experienced in recent decades. The current situation is now driving the interest of investors and consumers to interact with and choose businesses with the right environmental and social credentials. They are supporting buying trends that are being driven by conscious decisions. Consumers are prioritizing factors like ecological impact and sustainability when choosing who to purchase from or do business with.  In 2023, businesses will have to make a conscious effort to ensure that their environmental, social, and governance (ESG) processes are at the center of their strategy. They can start by identifying and measuring their impact on society and the environment. Businesses can then move to improve their transparency, sustainability reporting, and accountability. Every business will have to create a framework with clear goals of how to reduce its negative impacts. The assessment and plans will also cover the entire supply chain and the ESG credentials of suppliers.  Read more: Tech-Related Ethical Concerns Businesses Should Address in 2022  The Rising Concerns over Inflation, along with Supply Chain Security  The economic outlook for multiple industries is not looking good in 2023. Due to the ongoing inflation and subdued economic growth, many industries are still battling with the aftermath of supply chain issues that emerged during the global shutdowns caused due to Covid-19. And the situation has got even worse due to the war in Ukraine. To stay afloat, businesses need to enhance their resilience in ways they can. This involves reducing exposure to volatile market pricing of commodities and creating protective measures in supply chains to deal with the rising logistical costs.  Today it is important for companies to map out their entire supply chain issues as well as identify any exposures to the risks. This will enable them to explore ways to mitigate the risk, like alternative suppliers and embracing a more self-reliant way of operation. Companies are now deciding to in-source parts of their manufacturing after facing the risks that plagued them due to subsequent shutdowns.     Building an Immersive Consumer Experience  In 2023, customers will crave experience more than ever. That does not imply that product price point or quality will take a back seat. Traditionally technology has played a role in streamlining processes to remove the hassle from the consumer's life.  Just like how recommendation engines play a vital role in assisting consumers in choosing what to buy or online customer service portals that deal with consumer problems, in 2023, they will still play a key role; however, keywords will enjoy the limelight of interactivity.  The metaverse - which is being described as the next level of the internet - will enable brands to interact with their consumers through immersive technology, such as 3D environments and VR. With virtual representations of clothes, jewelry, and accessories, consumers will be able to dress up their avatars to see how clothes will look on their actual bodies. These trends will transform both online and offline retail.  Read more: The Next Tech Time Warp: How Will Artificial Intelligence Possibly Change the World?  The trend towards experience is emerging strong as brands are working to make it a foundational element of their business strategy.  Along with customer experience, businesses also need to consider employee experience as competition for talent and skilled workers is growing.    The Challenge of Employing New Talent that Understands Company's Vision   Over the past year, industries have witnessed huge movements of talented people, also referred to as the great resignation and quiet quitting. Workers are reassessing the impact of their work and what they want to get out of their lives. Due to this, businesses are finding them in a fix. It has also put pressure on employers to ensure they offer attractive career opportunities, a flexible hybrid work model, and a cultivating work environment and company culture.  In 2023, businesses will offer their employees fulfilling work opportunities to learn and grow, flexible and diverse work environments, and value-oriented workplaces.  The accelerated digital transformation is leading businesses to transition into workplace automation that will augment almost every job. Humans will likely share their work with smart machines and robots, which will have huge implications for the skills and talent required by companies in the future. This also implies reskilling and upskilling the existing talent within the organization, as well as recruiting new people with the skills needed for the future.   On the contrary, businesses will have to deal with the vast skills gap that still exists in domains, including AI, data science, and other technology areas. This will enable businesses to create a data and tech-savvy workforce that is vital to succeeding in the future. With human jobs getting augmented by technology, businesses will have to work an arrangement to re-train their staff with skills required to work in collaboration with smart machines and grow their skills that can’t be automated. In 2023, while the tech advancements will include skills like creativity, critical thinking, interpersonal communication, and leadership, they will require a humane touch of caring and compassion.  Read more: Why Should Enterprises Care About AI Ethics Related Issues?  In Conclusion   With economies changing dramatically, emerging markets are triggering development and accelerating the rise of new technologies, along with sustainability policies and changing consumer preferences. Digitization, automation, and emerging business models are revolutionizing industries. These forces are welcoming new technology-driven trends that will change the course of 2023 for many businesses.  Industry players and experts are gearing up to reinforce as well as accelerate their strategic operations. With this widespread understanding, as well as game-changing disruption, businesses are already on the horizon, and there is more to the integrated perspective on how the industry will transition in the next few years. The key perspectives on the 2023 business trends offer a scenario involving the types of changes that lie ahead and how they will impact conventional businesses, potential new players, consumers, value chains, and markets.  With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, Bengaluru, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.                         A leader in the Technology domain, SG Analytics partners with global technology enterprises across market research and scalable analytics. Contact us today if you are in search of combining market research, analytics, and technology capabilities to design compelling business outcomes driven by technology.

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SGAnalytics_Blog_7 Trends That BFSI Industry Cannot Ignore Anymore- Get Ready for 2023

7 Trends That BFSI Industry Cannot Ignore Anymore- Get Ready for 2023

The pre-epidemic challenges of the traditional banking business model have been exacerbated by the COVID-19 crisis, including revenue pressure, low profitability (due to low-interest rates and high capital levels), tighter regulation (following the previous financial crisis), and growing competition from shadow banks and new digital entrants.  The Impact of COVID-19 on the BFSI Sector  When compared to only a few months of lockdown, life has changed drastically for many of us. One of the most extensive adjustments has been doing things online that we had previously done in person. This entails internet shopping, digital banking, and video conferencing for socializing and business meetings, among other things.  We need to see now how much of this transformation will prove to be transient and how much will prove to be permanent. Would old behavioral patterns recur if COVID disappeared overnight, or would new behaviors stick around?  The solution for the banking sector is more in the direction of long-term transformation. Numerous news stories, particularly regarding HSBC, have emphasized how COVID has compelled reputable institutions to speed up their digital initiatives.  As more and more people integrate digital ecosystems into their daily lives, it is evident that COVID alone has not abruptly sparked the move to digital but has only expedited it. For instance, the move away from cash and toward electronic payment systems has been developing over time.   Digital business models will influence future banking industry developments. Changes in consumer behavior and preferences for many traditional financial services are already being brought about by digitalization. The digital transition has also sparked a fresh round of rivalry among established service providers. To compete, banks are under increased pressure to transform into "digital first" businesses. Many banks will become pure technology businesses by 2023, taking advantage of their sizable client bases and distribution networks to provide digital solutions.    How will digital banking technology developments influence how the BFSI sector transforms in the future? Here are some of our BFSI industry trends for 2023.  BFSI Trends 2023  1- More Consumers Will Favor Digital Channels Over Contact Approaches  Consumers are placing an increasing emphasis on digital solutions when choosing a financial provider. They want to see what things they have to offer, but they also prefer digital channels (like online and mobile banking) over contact methods (e.g., in-branch or by phone).  As "digital maturity" increases, this trend in digital banking will continue to gather momentum and force many banks to close substantial portions of their branch networks. Also Read: Biggest BFSI Trends to Watch out for in 2022  2- Banking Is Evolving into an Experience-driven Enterprise  Customer experience is anticipated to play a significant differentiating role for financial services providers in the future, both in terms of brand and for luring and keeping clients.  During their digital transformation, many banks emphasize the customer experience, ensuring the solutions they develop will satisfy all the needs of their customers in terms of ease, security, comfort, and engagement.  Customers already anticipate more individualized offers, including incorporating their suggestions and preferences into developing a service that provides them with even greater ease. By 2023, their capacity to foresee client demands and deliver exceptional experiences will set banks apart from their competitors.  Applying cutting-edge analytics to customer experience improves service while lowering expenses. Soon, banks' understanding of their consumers will be so enhanced by advanced analytics that they can adapt offerings, anticipate demands, and provide higher-quality services.   Banks must stay caught up in this trend of online banking. They must become institutions focused on the customer experience, encouraging patrons to be devoted and giving them their business.  Also Read: Top Trends That Will Shape Investment Banking In 2022  3- Open Banking Increases Competitive Pressures Open API banking is still in its early phases, but it has the potential to change the way that we do business ultimately. Open APIs allow banks to exchange data with "fintech" or other outside service providers. These apps facilitate transactions on digital platforms more quickly, securely, and efficiently.  Some leading US and European banks have already embraced Open Banking APIs, and the results have been excellent. APIs will become a powerful instrument for banks to develop new chances in cross-selling products or transactions as the lines between banking and other financial service providers continue to blur.  Data sharing between financial institutions, outside service providers, and clients are anticipated to be facilitated via open APIs. The ensuing integration for banks and their clients may lead to quicker innovation and improved customer experiences. However, open APIs will have significant security challenges, as financial institutions must ensure they can offer the required consumer data protection without impeding API activity. For instance, adding laborious manual verification steps to the API process can call for more security precautions to thwart hacking.  Open APIs will continue to be the favored option for banks and third-party providers in 2023. To prevent their data from being accessed by outside parties, developers may also find an advantage in concentrating on closed or hybrid APIs. It is anticipated that closer cooperation between financial institutions and developers would aid both parties in determining the most effective strategy for integrating their technologies.    Also Read: 71% BFSI Firms Use Big Data Analytics to Gain Competitive Advantage – It’s Uses in Equity Research  4- With Chatbots and Virtual Assistants, AI Will Make Banking Smarter Many banks will become pure technology businesses by 2023, taking advantage of their sizable client bases and distribution networks to provide digital solutions. Banks cannot compete with pure-play technology businesses that have access to powerful analytics and can process enormous amounts of data, even in fraud detection and compliance areas.  Natural language processing will become standard in customer interactions by 2023. Although chatbots and virtual assistants are becoming more popular across various industries, banking is where they shine because of their adaptability.  Banks should consider utilizing this technology to offer a superior client experience. They can automate customer FAQ responses, lower call center traffic, and free up staff time for more valuable activities. These technologies will be standard in banking apps on most devices, such as smartphones and tablets, by 2023.  Approximately ten banks have already deployed their chatbots as of today. As many banks use them to carry out their daily activities, banking chatbots have seen a significant uptake in China.  For its online platform, HDFC Bank in India has tested a virtual assistant that aids in keeping up with client expectations and preferences. It was perceived as an effort to improve customers' digital experiences. The younger generation in Latin America loves the virtual assistant from the Spanish bank BBVA. Also Read: PSD2 and MiFID II – Game Changers for the European Banking Sector  5- More Focus on Big Data and Analytics   Banks can put client behavior at the core of their business models thanks to big data. They can deliver more individualized services and boost revenue by utilizing predictive analytics to its full potential.  Future digital transformation success will depend on how much a bank can learn from its clients. Analytics will become crucial for efforts to segment the market and cross-sell to existing customers.  As a result, banks will have more insight into consumer behaviors and spending patterns, which can aid them in creating products and services that are specifically targeted.  By 2023, more "closed-loop" systems supported by quick and straightforward data collecting are anticipated. With a 360-degree perspective of their customers' demands, banks can offer them discounts and contextually relevant customized offers.  Also Read: Investment Banking - Overview, Guide, What You Need to Know  6- Banking Apps Are Evolving into Sophisticated Digital Assistants for Customers The use of banking applications as simple self-service tools will change in 2023 in favor of customer relationship management platforms that anticipate the user's demands and offer tailored advice based on their financial condition.  Based on the user's financial history and behavior, the banking software will develop into a "smart digital assistant" that can "understand" the user's wants and preferences. For instance, the intelligent app will foresee that you will soon need money for your card if you consistently send money to your savings account on payday but neglect to fill up your payment card with funds for the next month.  The proactive, intelligent assistant interacts with the client and suggests potential actions before the client is even aware of them. Also Read: Decoding a Pitchbook & It’s Uses in Investment Banking  7- More People Will Feel at Ease Banking on Their Own The focus on the consumer is growing across the banking sector. Customers want experiences that are more tailored to them and give them more control.  Many self-service options, such as mobile account opening, will be made accessible at a bank branch or ATM near you as the digital transformation develops, allowing clients to open accounts quickly and conveniently without having to go to the department.  Retail banking as we know it today is changing due to the emergence of digital banking. Through improved self-service capabilities, quicker account opening, more secure transactions, and increased transactional accessibility, it is improving the consumer experience.  By cross-selling financial products, banks have enhanced client engagement and created new revenue streams. Making banking accessible to consumers so they can easily achieve their goals is digital transformation's heart.  Across the board, automated processes are anticipated to transform service quality in 2023, with self-service technologies backed by advanced analytics assisting clients in making quicker and more informed choices. Conclusion These are the seven digital banking developments in the BFSI industry most likely to impact how we conduct banking in 2023. Customers will have substantially less friction when utilizing various banking services in the next five years. The consumer experience will be entirely different compared to what is currently supplied.  With a presence in New York, San Francisco, Austin, Seattle, Toronto, London, Zurich, Pune, and Hyderabad, SG Analytics, a pioneer in Research and Analytics, offers tailor-made services to enterprises worldwide.     A market leader in the BFSI space, SG Analytics assists businesses with insightful, relevant research along with sophisticated technology solutions. Contact us today if you are in search of a BFSI firm that helps in driving value-accretive decisions and executing efficient processes to enhance the efficacy of your investments.   

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