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Oct 2017 - IDC FutureScape - Doc # US41796017

IDC FutureScape: Worldwide Financial Services 2018 Predictions

Table of Contents

IDC FutureScape Figure

Figure: IDC FutureScape: Worldwide Financial Services 2018 Top 10 Predictions

Executive Summary

IDC FutureScape Predictions

Summary of External Drivers

Predictions: Impact on Technology Buyers

Prediction 1: By the End of 2018, 50% of Global Tier 1 and Tier 2 Banks Will Offer At Least Five External APIs, But Revenue from Digital Business Will Initially Be Disappointing

Associated Drivers

IT Impact

Business Impact

Guidance

Prediction 2: In 2020, 25% of Banks Will Use Microlocation for Marketing and Enhanced Security Through a Combination of RFID and Beacons to Satisfy Multifactor Authentication and KYC Guidance and to Deliver Mobile (or IoT) Real-Time Offers Based on Location, Loyalty, and Business Opportunity

Associated Drivers

IT Impact

Business Impact

Guidance

Prediction 3: By the End of 2019, 15% of Small and Midsize Banks Will Have Implemented Cloud-Based Compliance Analytics Platforms and Data Solutions to Improve KYC, CDD, and AML Compliance

Associated Drivers

IT Impact

Business Impact

Guidance

Prediction 4: In 2018, Spending Will Rise by 20% on Next-Gen Security-Based Authentication Methods to Channels as Retail Banks Respond to the Imperative to Build Digital Trust with Their Customers

Associated Drivers

IT Impact

Business Impact

Guidance

Prediction 5: By 2019, 35% of Insurers Will Deploy Cognitive Systems and/or Cognitive Robotic Process Automation for Intelligent Decision Making, Increased Automation, and Improved Operational Efficiencies to Deliver Contextual, Personalized, and Value-Centric Customer Experience

Associated Drivers

IT Impact

Business Impact

Guidance

Prediction 6: In 2020, 25% of Top-Tier Banks Globally Will Have Started Working Toward a "Connected Core," Which Is More Than Double the Proportion in 2017

Associated Drivers

IT Impact

Business Impact

Guidance

Prediction 7: By the End of 2018, 15% of Global Banks with Between $10 Billion and $500 Billion in Assets Will Have Partnered with, or Subscribed to, Cloud-Based Lending-as-a-Service Platforms for Consumer and/or Small Business Lending

Associated Drivers

IT Impact

Business Impact

Guidance

Prediction 8: In 2019, P2P Transactions Worth a Total of $6.0 Trillion Will Be Made Worldwide Using Mobile Devices

Associated Drivers

IT Impact

Business Impact

Guidance

Prediction 9: By the End of 2019, 30% of Large Banks Will Have Deployed Blockchain/Distributed Ledger Technology Projects on Blockchain-as-a-Service Platforms

Associated Drivers

IT Impact

Business Impact

Guidance

Prediction 10: Corporate Banks Will Invest $2.2 Billion in Big Data and Analytics in 2018 — 20% More Than in 2017 — to Transform from a Transactional to an Insight-as-a-Service Business Model Offering Real-Time and Predictive Analytics on Cash Flow, Fraud and Compliance, and Scenario Modeling

Associated Drivers

IT Impact

Business Impact

Guidance

Advice for Technology Buyers

External Drivers: Detail

Accelerating DX: Technology-Centric Transformation Altering Business and Society

Human Versus Machine: The Impact of AI and Automation

Innovation Impasse: Legacy Systems Constraining Transformation

Platform Disruption: Unleashing Digital Innovation's Power of Scale

Pace of Change: Technology Capabilities Enable Sustainable Change at the Speed of Digital Business

The Future Workforce: Global Demand for Digital Talent

New Nature of Risk: Innovation to Defend Against Bad Actors and Comply with Increasing Regulatory Compliance

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Related Research

Referencing Documents

Related Links