Key Digital Wealth Managers: How robo-advisors present an opportunity for fintechs and incumbents alike

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Digital wealth managers, also called robo-advisors, came into existence after the financial crisis in 2008, when fintechs aimed to simplify and democratize wealth management services with technology-first solutions.

Robo-advisors use technology such as AI algorithms and machine learning to manage users’ assets, while often relying on a hybrid model including human advice to enhance the customer relationship.

Although they only hold a fraction of the more than $43 trillion in investable assets under management in North America, digital wealth management is set to grow in the future – presenting an opportunity for fintechs and incumbents alike.

In this report, Insider Intelligence details the Key Digital Wealth Managers that are demonstrating best practices for the industry.

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The Future of Fintech: AI & Blockchain

Summary List PlacementSweeping global regulations, the growing penetration of digital devices, and a slew of investor interest are catapulting the fintech industry to new highs.
Of the many emerging technologies poised to transform financial services, two of the most promising and mature are artificial intelligence (AI) and blockchain.
74% of banking executives believe AI will transform their industry completely, and 46% of global financial services employees expect blockchain to improve transparency and data management.
In The Future of Fintech: AI & Blockchain slide deck, Business Insider Intelligence explores the opportunities and hurdles of adopting the two technologies within financial services.
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THE DIGITAL BANKING ECOSYSTEM: These are the key players, biggest shifts, and trends driving short- and long-term growth in one of the world's largest industries

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This is a preview of Digital Banking Ecosystem research report from Business Insider Intelligence.
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The banking industry is in the grips of an identity crisis. Leaders of the world’s largest banks — such as Citi, BBVA, and Goldman Sachs — have begun describing themselves as technology companies with banking licenses.
However, this description is still aspirational. Executing the vision will require billions of dollars in investments, the restructuring of teams, a reimagining of the entire banking technology stack, and the adoption of a far more customer-centric business view. 
The stakes of failing to transform are high: Accenture projects that 35% of all bank revenues could be at risk from more tech-savvy competitors like fintechs as soon as 2020 for incumbents that fail to up their game.
As a result, a wave of digital transformation is now sweeping the banking industry, as incumbents shore up against consumer demand and competitive pressures. Major banks have already announced multibillion-dollar, multiyear digitization projects: By 2021, global banks’ IT budgets will surge to $297 billion, up 14% from $261 billion in 2018, according to Celent.
Many incumbent banks are opting to decrease their branch budgets and networks and reinvest their resources in digital channels such as mobile instead to cater to current consumer preferences, and are enlisting the help of tech-savvy software vendors to modernize their tech stacks from top to bottom as part of this process.
In the Digital Banking Ecosystem report, Business Insider Intelligence explores the incumbent banking landscape as a whole, and the third parties banks are calling on to help their transition to digital. We then take a closer look at the three biggest drivers for incumbent banks’ digitization push: digital-native competitors like neobanks and Big Tech companies; changing consumer behaviors and banking channel preferences; and a growing array of cybersecurity threats.
Lastly, we examine what incumbents are already doing today to transform themselves into digital-first organizations to compete in a customer-centric, data-driven global economy, and how they are learning to meaningfully measure the progress of their transformations. 
The companies mentioned in this report include: Acronis, Amazon, Ant Financial, Apple, Ario, Banco Galicia, Bancorp, Bank of America, Bank of England, Barclays US Consumer Bank, BBVA, BNP Paribas, Caixa Geral de Depositos, CaixaBank, Capital One, China Construction Bank, Citigroup, Citizens Bank, Compliance.ai, CSI, Dave, Detroit Fintech Bay, Deutsche Bank, Diasoft, Emirates NBD Bank, Finastra, Finn AI, Finxact, First Direct, FIS, Fiserv, Flagstar Bank, Forcepoint, ForSee, Forward Networks, Geezeo, Gemalto, Goldman Sachs, Google, Grab, Hello Bank, Help Systems, HotJar, HSBC, IBM, ICBC, Infosys, ING, ING Direct, Intesa Sanpaolo, Jack Henry, JPMorgan Chase, Kenna Security, Lloyds Bank, Lyft, Midwest Bank, Mission Bank, Monzo, N26, Nationwide, NatWest, nCino, ObserveIT, OnDeck, Openbank, Osano, Personetics, PNC, RBS, Reciprocity Labs, Saga, Santander, Sberbank, Square, Starling Bank, Strands, Tanium, Temenos, Tencent, Thomson Reuters, Thought Machine, Tink, TSB, Uber, United Income, US Bank, Wells Fargo, Zelle, and Zopa. 
Here are some of the key takeaways from the report:

Incumbent banks are intensifying their digitization efforts in the face of changing consumer demands and growing competitive pressures.

The number of US consumers considering switching banks in the next 12 months increased by 86% from a year before, from 6.9 million to 11.9 million, per Resonate, with consumers citing the need for better digital banking services and more personalized products and tools as major motivators.
Meanwhile, tech giants like Google and Amazon are poised to grab up to 50% of the $1.35 trillion in US financial services revenue from incumbent banks, per McKinsey, leveraging their tech expertise to lure away customers.

Legacy channel usage is steadily dwindling, while digital channel usage is firmly on the rise. This turn to digital is being accelerated by younger, tech-savvy generations like millennials and Gen Zers quickly becoming banks’ largest addressable market.

Once the most widely used banking channel in the US, branch use will drop at a compound annual growth rate (CAGR) of -2.01% between 2019 and 2024, per Business Insider Intelligence projections.
Meanwhile, mobile banking, the least-used banking channel in 2008, is expected to grow at a CAGR of 2.83% between 2019 and 2024, the highest among all channels. 

To digitally transform, banks need to join forces with partners, enemies, and frenemies alike. Vendors will be key to the modernization of banks’ IT, with specialists catering to each layer: 81% of banking executives surveyed by Finextra and the Euro Banking Association cited working with partners as the best strategy for achieving digital transformation goals. Banks’ growing IT budgets reflect their changing priorities: By 2021, global banks’ IT budgets will surge to $297 billion, up 14% from $261 billion in 2018, according to Celent.
Banks’ digital transformations are already well under way, and incumbents are making massive changes to the way they operate and plan for the future to compete in a digital economy. They’re doing this by embracing digital-ready innovation models; adopting new business models like open and direct banking; and reorienting their tech stacks around the digital customer experience.

In full, the report:

Outlines the incumbent banking landscape and its components, and the structure of the banking tech stack and the vendors supplying each of its layers.
Explains the biggest drivers behind banks’ digital transformations, especially the rise of tech-savvy competitors, shifts in consumer behaviors, and a growing number of cybersecurity threats.
Highlights the steps banks are already taking to turn themselves into digital-first, data-driven, and customer-centric organizations. 
Evaluates the progress incumbents have made towards digitization, and how deeply they’ve embedded themselves in the emerging cross-industry digital banking ecosystem.

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Financial Services: 6 Key Attributes to Attract Gen Z

Summary List PlacementNow the largest generation worldwide, Gen Z accounts for nearly 68 million people in the US alone. As Gen Zers age, financial services providers will be increasingly pressed to shift focus to the burgeoning demographic.
As digital natives, Gen Zers are more receptive to influence from friends and family than traditional advertising. For marketers, strategists, and developers, understanding Gen Z’s unique needs — and creating and marketing products accordingly — will be critical to reaping their value.
In Financial Services: 6 Key Attributes to Attract Gen Z, Business Insider Intelligence provides a six-point framework that highlights core traits of the demographic, which banks and payments firms can use to attract, engage, and retain Gen Zers.
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AI IN HEALTHCARE ADMINISTRATION: How digital health firms and big tech are using AI to ease doctors' administrative burden

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Insider Intelligence publishes thousands of research reports, charts, and forecasts on the Digital Health industry. You can learn more about becoming a client here.

The following is a preview of one Digital Health report, the AI in Healthcare Administration report. You can purchase this report here.

Physician burnout has permeated the healthcare landscape over the last decade, costing the US healthcare system $4.6 billion annually. Over 40% of US physicians said they were burned out pre-pandemic — a figure that’s likely swelled amid the stress of treating coronavirus patients.

The staggering proportion of US physicians experiencing burnout is further compounded by findings that indicate the US is facing a clinician shortage: A pre-pandemic analysis published by the Association of American Medical Colleges (AAMC) projects the US will see a shortage of up to 139,000 physicians by 2033. And now, the coronavirus pandemic is exacerbating clinicians’ feelings of burnout.
Providers are seeking ways to combat burnout and cut back on the associated costs — opening an opportunity for tech players with AI-based healthcare administration tools. Provider organizations have expressed significant interest in reducing clinicians’ burnout, with hundreds offering their feedback to the US Department of Health and Human Services (HHS) as part of the federal agency’s efforts to develop an actionable burnout-reduction strategy for physicians.
This presents a sizable opportunity for digital health startups and big tech firms alike, who have increasingly rolled out AI-based tools including machine learning services and voice-enabled digital assistants to help ease clinicians’ stress and address the physician burnout crisis permeating the US.
In this report, Insider Intelligence explores the factors driving burnout among clinicians, and how digital health firms and big tech are developing AI solutions to address the US’ physician burnout crisis. We first unpack the key drivers of US physicians’ burnout, including the weight of their administrative burden and extensive working hours. Next, we explore four AI-powered solutions we’ve identified as having the ability to most effectively combat physicians’ administrative burden and feelings of burnout. We then detail some of the limitations of current AI-based healthcare administration tools and explore barriers that have prevented some physicians from adopting the tech. Finally, we provide an outlook on what the next iteration of AI-powered healthcare administration solutions could look like.
The companies mentioned in this report are: Amazon, Amazon Web Services, Amgen, Apple, Austin Regional Medical Clinic, Cerner, CommonSpirit Health, Google, Google Cloud, Microsoft, Nebraska Medicine, Notable Health, Nuance, Suki, and Wolters Kluwer.
Here are some key takeaways from this report: 

Physician burnout has remained at dangerously high levels over the past 10 years — and the coronavirus pandemic is driving it to a fever pitch.
Clinicians cite the administrative burden of tasks like charting and paperwork as the top driver of burnout — with long working hours also playing a major role.
Digital health startups and big tech companies are rolling out AI-powered healthcare administration solutions to automate tasks and free up clinicians to focus their time on providing patients care.
Despite AI’s ability to combat physicians’ burden, several barriers — like cost and return on investment considerations — are holding some providers back from adopting AI for administration.
Digital health startups and big tech companies are working to overcome existing limitations and improve the capabilities of their AI-powered solutions to more effectively combat clinicians’ administrative burden — and resultant burnout — on a wider, more accessible scale.

 
In full, the report: 

Explores the factors driving US physicians’ burnout, and how the coronavirus pandemic is compounding clinicians’ stress.
Provides an overview of the digital health startups and big tech firms who have developed AI-based healthcare administration solutions with the ability to most effectively combat US physicians’ feelings of burnout.
Outlines the constraints of existing AI-powered healthcare administration tools and identifies factors that have stood in the way of adoption.
Highlights what the future could hold for the AI-based healthcare administration space.

Interested in getting the full report? Here’s how you can gain access:

Join other Insider Intelligence clients who receive this report, along with thousands of other Digital Health forecasts, briefings, charts, and research reports to their inboxes. > > Become a Client

Purchase the individual report from our store. > > Buy The Report Here

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