There has been a lot of debate around the evolution of our economic structure and the role of technology in advancing and supporting this advancement. The Indian economy is on a high-rate growth track; McKinsey says the economic crisis sparked by Covid-19 could spur actions that return the Indian economy to a high-growth track and create gainful jobs for 90 million workers by 2030.
Every year, we see new trends across industries, however, there are certain mega trends that encompass the social, economic, environmental, and technological trends on a global scale and are expected to set the industry and economic standards for the years to come. Megatrends have begun to influence a wide range of business activities, processes, and perceptions, and they are likely to shape the future of businesses.
Data-led economy, 5G and future of connectivity
Over the last few years, India has begun a historic transition toward becoming a data economy, giving rise to the megatrend of data-led economy. As a result of the proliferation of digital services, Indians are producing a significant amount of personal data. Data has been doubling every three years globally and is expected to reach nearly 180 Zettabytes (ZBs) by 2025.
The proper application of this wealth of information opens a plethora of opportunities for businesses to embrace and promote a truly data-driven culture within their organisations. Data’s impact is redefining ‘intelligence’ across industries, guiding them toward innovation, growth, and well-being. Cloud computing is providing the right tools for this, laying the groundwork for leveraging data as an asset, and cloud providers such as Oracle are assisting businesses in becoming more effective.
We are also witnessing the integration of megatrends, which is resulting in the advancement of interdependent and multi-dimensional trends. For example, in the telecom industry; emerging technologies such as 5G, edge computing, cloud, AI and robotics are being integrated to address the telecom sector’s need for real-time automation and enhanced connectivity.
Leading telecom giant Airtel is capitalising on ‘Megatrends’ by making strategic cloud investments. Talking about Airtel’s cloud journey, Prasad Rai, vice-president, Global Strategic Clients Group, Oracle India, said, “Airtel is striving to position itself as a cloud-savvy and digitally empowered organisation. They are a large customer of Oracle OCI, HCM, and ERP, and are maneuvering themselves as a strong adopter of megatrends and moving the digital way by cloudifying their processes and integrating them with 5G technology, allowing them to reap greater benefits.”
While talking about the digitisation within telecom space and the integration of Oracle cloud applications, Pradipt Kapoor, CIO, Bharti Airtel said about the deployment of cloud apps, “the telecom industry is witnessing enormous growth and massive digitalisation. We wanted a technology partner that could meet these dynamic demands and help us in the transition to cloud-based applications as we build a digital Airtel.”
Rise of Embedded Finance
Essentially, Embedded Finance is a new, ecosystem-based innovation that allows financial services to be delivered directly into non-financial websites, mobile apps, and business processes. It allows non-banking and non-financial institutions to integrate financial transactions onto their platforms. Embedded Finance has emerged as a key megatrend in recent times owing to the shifting consumer behaviour and purchasing habits. The rise of e-commerce, delivery platforms, and online payment methods such as mobile wallets, UPIs, and embedded payment gateways has altered the entire sale and purchase ecosystem.
As more consumers experience rising incomes, their financial needs are likely to increase and become more sophisticated. Asia’s share of active digital banking users increased to 88%, up from 65% four years before, says McKinsey. This is where Embedded Finance is gaining traction as a means of accessing financial services without having to rely solely on banks. Globally, the Embedded Finance market is expected to generate $230 bn in revenue by 2025, over ten times more than 2020’s figure of $22.5 bn.
Sophisticated technologies and specifically cloud computing is serving as a major enabler of Embedded Finance. Oracle, for example, is incorporating Embedded Finance into their offerings. Oracle’s solution enables banks to provide personalised digital-banking experiences. Through intelligent agents, the solution provides seamless, one-click connectivity to popular Oracle and third-party ERP platforms, banking experience.
“Embedded Finance has gained prominence in the financial ecosystem as more and more fintechs make an entry into what was, traditionally, the domain of banks. However, fintechs need the platform capabilities that banks provide and this is where the benefits of Embedded Finance are evident”, said Shalini Warrier, executive-director, and Head – Retail, Federal Bank.
As our society continues to be disrupted by digitalisation, there is growing concern about the impact it will have on jobs, wages, resource efficiency, and security. Today’s industry leaders’ goals include creating long-term value for all stakeholders, with a strong emphasis on growth. In this case, it is critical to comprehend, assess, and intelligently integrate these megatrends into business processes to create value-driven business models.
WHAT LIES AHEAD
Data asset management to be a top priority for CEOs & CIOs
Data doubling every three years globally; set to reach 180 Zettabytes (ZBs) by 2025
5G, edge computing, cloud, AI, robotics to aid telcos in real-time automation and enhanced connectivity
Embedded Finance market expected to generate $230 billion in revenue by 2025