It is already February and predictions have already started to happen, but what else is coming?
The report says it pretty straight forward: Digital transformation has just begun. This could not be more true, as business are starting to harness into technology as its main differentiator more and more. Yes, technology has been into the picture since the PC started to change how information was processed and tap into decision making. But no, not every industry — let alone every business— has leverage on technology to take their value to another level.
Trends happen differently for every industry and in a timely manner, mainly depending on their adaptability to new technologies and the safety net to try new things. Along this post, I’ll go through the main trends into the Banking, Connectivity, Digital Health, Fintech and Payments & Commerce industries.
If you are not spending into the right things, you’ll probably blockbustering. Banks are spending big in IT. Both big banks and smaller units will begin spending the same percentages of assets in Information Technologies. Although we cannot compare the JP Morgan ($11.4M USD in assets) expense versus a $600k-in-assets-bank, agility is a key characteristic when developing new technology into corporates.
Connectivity and Tech
Alexa, play Despacito, ‘cause sales are bound to drop for the first time in 2020. I am an Alexa user along with half US households, but I have to say this: it is not as intelligent as I thought. Yes, it is an amazing alarm clock and tells you very specific info depending on your behavior online… But it is not much more.
I would still buy another one, though…
Amazon, as we are now used to, will also disrupt the Health Industry by introducing AmazonCare to the US public. After acquiring a telehealth startup, building up its HIPAA-eligible medical transcription software via AWS and expanding Haven — it’s insurance joint venture with JP Morgan Chase and Berkshire Hathaway; Amazon is ready to rock it during 2020.
To date, 10% of US customers are utilizing telehealth options, but 62% of Americans would give up face-to-face consultations, according to a 2019 PwC report.
Usually, video games made their dollars by its sales. Nowadays, developers are tapping into the in-app purchases. Following the lead of social media platforms with shopping integrations, video games houses are also monetizing digital assets such as coins, special levels or even wardrobes.
The main reason this happens is because friction into the advertising to purchase funnel must be reduced so that ratios are better. But not only that, it goes well beyond. Imagine that you buy a pair of special edition shoes for your avatar. Is you are fan enough, you’ll want them in real life. Market intelligence, everyone!
This is one of our favorites… Financial technology. And not only ours, all South America is looking into a 2020 Q1 of more than $1B USD in fintech funding. Following a $704M USD 2019 Q4, the region funding trends in Fintech is growing, and growing big.
If you, dear reader, think this is nothing but impossible, let this two facts sink:
· Smartphone users in Brazil are expected to be 86% by 2015.
· Argentina’s Central Bank authorized interoperability between traditional banks and neo-banks.
Payments and Commerce
Remember that 2019 trend about the autonomous checkout store, such as Amazon Go? Well, let’s get back at that in 2021, as it is not going to be fully profitable soon enough for its expansion during the year. The reason is as simple as size: big stores, as supermarkets, are built to have big layouts for non-standard products, making product tracking hard.
Orion Startups and Orion Technology Park is taking the leap towards being vertical-focused. If you want to talk more about trends, startups, innovation and venture capital, reach out. We’ll love to hear from you.