Author: Ronak D

Group Life Policy Administration Systems (PAS) Products PEAK Matrix® Assessment 2023 – North America

Group Life Policy Administration Systems (PAS) Products PEAK Matrix® Assessment – North America

Group life insurers are increasingly looking to modernize their core platforms to address the limitations of their legacy core systems and drive transformation to future-proof their IT infrastructure. They are seeking cloud-ready platforms that can enable extensive API integrations and provide out-of-the-box functionalities for rapid product configurations.

In response, technology providers are developing deep expertise across various product types and demand themes. They are expanding their talent pools, building configurable solutions to address key concerns around on-budget and on-time implementations, and supporting insurers to become digitally enabled.

PAS PEAK 2023

What is in this PEAK Matrix® Report

In this report, we assess 15 technology providers featured on the Group Life Policy Administration Systems (PAS) Products PEAK Matrix® Assessment 2023 – North America. Each provider profile provides a comprehensive picture of its service focus, key Intellectual Property (IP) / solutions, domain investments, and case studies.

This report examines:

  • Provide an overview of the group life PAS market, including its size, growth, and drivers
  • Assess 15 technology providers that focus on North America
  • List the characteristics of Leaders, Major Contenders, and Aspirants
  • Examine providers’ key strengths and limitations

Scope:

  • Industry: insurance
    Geography: North America
  • The assessment is based on Everest Group’s annual RFI process for year 2022-23, interactions with leading group life PAS technology providers, client reference checks, and an ongoing analysis of the North American insurance technology market

DOWNLOAD THE FULL GROUP LIFE POLICY ADMINISTRATION SYSTEMS (PAS) PRODUCTS PEAK MATRIX® ASSESSMENT 2023 

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What is the PEAK Matrix®?

The PEAK Matrix® provides an objective, data-driven assessment of service and technology providers based on their overall capability and market impact across different global services markets, classifying them into three categories: Leaders, Major Contenders, and Aspirants.

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How the Recent Seize of First Republic Bank and the UBS Takeover of Credit Suisse Will Impact the BFS IT Services Market | Blog

The recent seize of First Republic Bank and UBS’ takeover of longtime rival Credit Suisse in a rushed, deeply discounted deal has reverberations across the banking and financial services (BFS) IT services market and on service providers. Read on to learn the looming risks and what to pay attention to in this blog.

The aftershocks of the collapse of SVB and Signature Bank, followed by the UBS-CS deal, are still being felt by the banking industry. The recent seize of First Republic Bank by JPMorgan with warning bells around PacWest has brought back memories from the 2008 financial crisis of whether this will be a one-off event or end up spreading like a contagion to the banking sector, especially the mid-market banking sector in the US. The stock of First Republic Bank had been steadily losing value in the last few weeks, and the massive deposit outflows put the bank at risk of failure. In a hurried weekend bidding, JP Morgan was the winner, while others like PNC and Citizens were unsuccessful. Right after the rescue by JP Morgan, shares in other mid-market banks started to see a slide. Commercial real estate loans have emerged as one of the main culprits pulling down loans value.

One thing that is becoming abundantly clear from these events is that customer confidence in their bank’s ability to protect their uninsured deposits is waning. It is when quarterly earnings are reported that the full picture is coming up on deposit outflows. While technology advancements have helped the banking industry, digital banking has only shown how fast deposits can be moved, which, coupled with social media panic, can accelerate a bank run. The implications for the overall banking sector, along with the technology and services industry, are multi-fold.

Implications for the BFS IT services market:

  • The market will see the return of large deals as bank consolidation will see the larger acquiring entity consolidate the supplier portfolios
  • Higher regulatory scrutiny, especially on mid-market banks, coupled with plummeting stock value, will put a dent in banks’ IT spend in the near-term
  • Cost-saving measures will be put in place, leading to job cuts and even branch rationalizations in the short term; job openings have already slumped to 6-month lows in the US

Interestingly, it raises the question of whether large banks are becoming too big to fail, leading to an even higher concentration risk for the banking sector. While the takeover of First Republic Bank is expected to bring gains to JP Morgan in the wealth management business, will banking get consolidated in the hands of a few? This will have repercussions on technology spend and the competitive nature of the industry. Already, the US was behind the curve on open banking adoption. The added risk of bank failures may halt these initiatives for some time.

The rescue by UBS of Credit Suisse marks the latest explosion across global financial markets in the ongoing banking troubles sparked by the collapse of Silicon Valley Bank and Signature Bank in the US, as we covered in our last blog.

Let’s take a look at the factors leading up to the Swiss brokered last-minute emergency takeover of Credit Suisse at a 60% discount.

Impact of the UBS-CS transaction

Credit Suisse was already battling concerns when its biggest annual loss since 2008 exacerbated the situation. Falling investor confidence eroded its share price to an all-time low, and top investors refused to give the bank more money citing liquidity concerns and regulatory hurdles.

Because Credit Suisse is considered one of the global systemically important financial institutions (SIFI), concerns about its future existence were particularly troubling. While the deal was made to prevent further meltdowns and stabilize the banking industry, risks of further blight spreading exist.

The merger of the two giants will have ripple effects on the BFS market, including:

  • Slowed growth in Europe: If the crisis trickles down to other banks and lasts long, revenue growth in the banking, financial service, and insurance (BFSI) segments will be impacted in the near to mid-term. Other related sectors (such as retail and telecom) also can be affected as seen during the Great Financial Crisis of 2008
  • Hits to other business segments: Areas such as asset and wealth management will be impacted by UBS’ decision to exit its wealth management business in some markets. Also, the move to wipe out the holdings of Credit Suisse bondholders has damaged Switzerland’s global reputation as a stable, predictable international asset manager
  • IT consolidation: With duplicating technology platforms and applications, the new entity will have to rationalize vendor portfolios and IT estates to realize significant cost synergies. Merging the two banks will require increased short-term spending on integration activities and consulting. Partners that can create modernization roadmaps for the combined entity also will be needed to drive long-term value
  • Job loss: UBS’s rescue plan for Credit Suisse may result in the loss of thousands of jobs at a time when the Swiss financial sector is already under tremendous stress due to the sudden takeover. The bank has slashed 4,000 positions so far this year
  • Robust risk controls: Credit Suisse’s risk management practices will need a major revamp given its troubled history of scandals and management controversies (Archegos and Greensill scandals in 2021) that led the Swiss Financial Market Supervisory Authority (FINMA) to order remedial action. The required measures include periodic executive board-level reviews of the most important business relationships for counterparty risks

Additionally, suppliers in UBS and Credit Suisse’s IT portfolio should brace for an impact when these mammoths consolidate.

UBS-CS impact on service providers

Traditionally, UBS and Credit Suisse have been huge outsourcing shops, with two or three major service providers controlling most of the work. Both banks have actively been reducing their outsourcing headcount and shifting their focus to insourcing and building capabilities in-house over recent years. This direction, coupled with the dynamics of the takeover, will lead to a rebalancing in the overall service provider portfolio across both banks. Here’s a look at the current landscape:

Picture1 9

Typically in mergers, providers that have big contracts with both entities stand to lose revenue because the spending by the merged entity will not be as large as it was under the separate relationships, unless they gain wallet share from competitors.

Suppliers that only provide services to Credit Suisse are at risk of having their portfolio consolidated and moved to UBS. However, providers who bring intellectual property or a niche capability to the table may be able to maintain the business through the consolidation.

We are closely watching how the events will unfold in the next few weeks. UBS has a stronger balance sheet and is insured against any losses by the Swiss Treasury, which should lead to stability but settling cultural, and IT alignment will take time.

How Credit Suisse’s wealth management business shapes up is another element to consider. Already clients and asset outflows have begun, with competitors trying to take a piece of this pie.

BFS market outlook

The road ahead will be marred by the following challenges:

  • Banking industry consolidation: While the sudden implosion of SVB delivered a deep blow to a mid-market sector, the Credit Suisse collapse may have further repercussions across continental Europe and lead to further industry consolidation and mergers. This also will impact the technology sector, which is already reeling from layoffs, falling stock prices, and diminishing funding for startups
  • Business segments and markets reprioritization: Providers will need to reprioritize their efforts and pivot their go-to-market focus on high-growth segments. A critical need exists to align with growth segments across lines of business, marquee clients, and the partner ecosystem
  • Margin resilience: Our initial hypothesis indicates that service provider contract pricing should remain stable. However, revenue realizations could come under pressure with a lag due to portfolio shifts and the heightened competitive intensity. The US dollar has strengthened in past cycles in relation to the Indian Rupee so the cross-currency impact should be positive for margins

For more insights on the BFS technology and IT services market or to discuss the UBS-CS deal, please reach out to Ronak Doshi, Kriti Gupta, or Pranati Dave.

How Technology Can Help the Wealth Management Industry Navigate Coming Changes in 2023 | Blog

With the economy headed for slower growth, technology is more important than ever to enable companies to better serve customers by providing hyper-personalized experiences. Read on to learn how the disruptions will impact the wealth management industry and the role technology and service providers can play to help wealth managers navigate the choppy waters ahead.

In light of changing investor preferences, mounting regulatory pressures, and a looming economic slowdown, the wealth management industry is at the cusp of change. While the industry has demonstrated good resiliency and recovery post-pandemic, signs point to subdued growth in the next few years.

The wealth management industry has been experiencing one of the longest periods of market growth and economic stability in recent history. Financial support by governments, lower interest rates, and limited consumption opportunities have contributed to rising household wealth, generating increased revenues for wealth management companies from more fees and advisory support.

But the rapid rise in interest rates and fear of an economic slowdown will put pressure on this industry in 2023. Let’s look at the factors disrupting the wealth management industry in the first of our two-part series.

Fundamental change in ecosystem participants – passing trend or here to stay?

The industry is seeing structural changes in ecosystem participants. Traditional wealth managers are no longer the only players offering wealth management services and products. Challenger banks, pension providers, insurance firms, super-apps, nonbank financial companies (NBFCs), and nonbank financial institutions (NBFIs) are entering the market and creating competition.

These emerging segments already have access to a large customer base supplemented by data insights on demographics and buying patterns. This enables them to remove silos for customers and simultaneously improve income streams by reducing churn risk.

Customers now can access investment services within an umbrella of existing offerings. While this is a win-win for both parties, it is making wealth managers apprehensive as they realize the critical importance of retaining and more effectively serving their current customers.

Rethinking growth versus profitability conundrum – impact of a potential slowdown?

While the pre-pandemic era was all about expanding and tapping into new customer segments, the strategy for serving various customer bases has significantly shifted. With the changing market dynamics, the focus has morphed from expanding and tapping into newer segments to building trust with existing customer segments and enabling hyper-personalized experiences.

A potential economic slowdown would have ripple effects on the wealth management industry. The focus on rapid growth would take a backseat as enterprises pivot their attention to reducing costs and improving profitability. This would directly impact tracking advisor productivity, improving advisor-to-client ratios, and enabling hyper-personalized experiences.

At the same time, providing access to emerging themes like Environmental, Social, and Governance (ESG) and digital assets will prove to be differentiators in the long run. Regulatory activity is heating up in the ESG space and will lead to corresponding technology implications for wealth managers’ IT estate, as previously discussed in our blog, New Sustainability and ESG Investment Regulations will Spur a Second Digitalization Wave in Wealth Management.

Technology implications – will the IT estate need to be re-examined?

The wealth management technology estate traditionally has been characterized by multiple disparate systems siloed by products or functions, fracturing the customer experience. At its core, wealth management grapples with a massive data problem – how to effectively analyze customer data, understand their journeys, and identify better cross-sell/upsell opportunities.

Wealth managers need an IT estate that is flexible enough to accommodate these hyper-segments and different products, and their underlying data to address these evolving demands at speed and scale.

Identifying the right platform partner, enabling product expansion via ESG and digital asset offerings, and quickly disseminating this information to advisors will be key priorities for wealth managers as they assess their technology estates.

Identifying the ecosystem strategy for system integrators and other technology companies to improve fractured customer experiences will be equally important for technology providers. At the same time, service providers also will need to orchestrate and assemble best-of-breed solutions for wealth management clients by building a robust partnership ecosystem.

As wealth managers grapple with these market changes, technology has never been more important to help them better prepare and tackle the potential challenges coming their way.

The key questions that need to be answered include:

  • How can the service cost be reduced?
  • How can the right tools be used to improve advisor productivity?
  • How can a microservices-based Application Programming Interface (API)-enabled composable core be built?
  • How can data be leveraged to enable personalized client experiences?
  • How can a scalable and purpose-built cloud infrastructure be used to run mid- and back-office operations on the cloud?

We are interested in hearing how wealth managers are preparing and tackling these market dynamics, and how this is manifesting in the conversations technology and service providers are having with clients. Please reach out to [email protected] or [email protected] to share your thoughts. In our next blog, we will look at the future state of the wealth management industry and provide a technology architecture blueprint for this space.

Learn more about how to deliver better customer experiences in our LinkedIn Live session, Frictionless Customer Experiences: The Key to Unlocking Satisfaction.

SVB Aftermath: How Will the Bank Failures Impact the Technology Services Industry? | Blog

With the recent banking implosion, the global financial services industry, technology companies, and service providers will be hit in different ways. Let’s explore the reverberations of these concerning banking trends.

The failure of Silicon Valley Bank (SVB) along with Silvergate and Signature Bank raises the question: Are these isolated incidents or signs of greater trouble in the financial services industry signaling a recession in the US? We believe this will start a domino effect impacting banking regulations, profitability, and technology spend.

The recent collapse of the banks will have repercussions across the financial services system and may trigger the following aftermaths:

  • Opportunities for large banks to capture business from banks with similar concentration sector risks of sectors that are seeing slowdowns (e.g., the start-up and tech concentration for SVB)
  • Rising mergers and acquisitions (M&As) to counter concentration risks and take advantage of current banking valuations, especially in the mid-market and regional banking segments
  • Reversing rate hikes by the Federal Reserve could bring about a multi-fold impact, as most organizations have planned their business strategy with the assumption of additional hikes for rates in 2023
  • Tightening of spend across organizations to manage near-term profitability. This could also cause spending slowdowns this quarter for IT outsourcing suppliers. Discretionary spending also will dry up, and decisions on new large modernization deals will be delayed
  • Declining revenues and loss of business in the current and following quarters for IT outsourcing suppliers catering to these banks

After the dust settles, these bank collapses can bring about the following two key learnings in the long term:

  1. Data and analytics and Artificial Intelligence (AI) technologies could play a key role in better risk management (e.g., for the SVB asset-liability mismatch issue) to predict similar risk scenarios and prevent future failures
  2. Additional stress test scenarios can help avoid future bank runs on non-SIFI institutions

Banking trends and impact

As the events played out, Moody’s downgraded its view on the US banking system from stable to negative, citing a rapidly deteriorating operating environment. Banks with sector-specific concentration risks, specializing in two or three sectors, have grown deposits in the last couple of years and also have a higher percentage of customers with average deposits exceeding the FDIC-insured limit, putting them at higher risk.

These banks will need to assess their portfolios and provide assurance to their customers. Even with these guarantees, customers still may decide to change their banking partners and seek traditional large banks that have more liquidity, impacting regional and smaller banks’ growth.

Declining customers and subsequent deposits will also affect other banking portfolios, and digital and technology transformation spend may take a hit. Banks’ risk management functions also will be scrutinized again. For example, only one of the seven members of SVB’s Risk Committee had risk management experience.

Implications for the financial services industry

The global financial services industry also could be impacted. Other geographies like Japan and the UK are showing signs of distress with banks of similar portfolios and exposures.

The bank failures could have a lasting impact on the sector as the financial services industry restructures and implements new processes to avoid similar scenarios, including:

  • Stricter stress testing rules to prevent further risk to the nation’s financial stability
  • Increased frequency and number of stress testing within banks as they reassess their portfolios and plan for any asset-liability mismatches
  • Greater focus on banking governance in the US triggered by the questions raised over systemic risk exemptions for SVB and Signature
  • Layoffs and hiring freezes as the industry becomes more prudent and conservative
  • Larger banks taking business from banks that have similar risk issues and might struggle
  • Rising M&As, especially in the mid-market and regional banking segments

Opportunities for providers

Here are our recommendations on how technology and service providers can capitalize on these new banking trends:

  • Adopt a multi-stakeholder approach with large banks: More than half of the business and financial services (BFS) technology spend comes from Tier 1 banks, and we expect investments by these market giants to remain strong and even expand to address the ripple effects. Providers should adopt a multi-stakeholder approach to target risk and compliance, marketing, operations, technology, and business unit leaders who all might course correct their strategies (in response to potential Federal Reserve reverse rate hikes, products being stress tested, new ones being launched, increased regulatory reporting activity, etc.)
  • Prioritize accounts for small and mid-size banks and credit unions: Service providers need to re-prioritize their account strategy for these banks as they renew priorities and focus areas. We expect overall spending by small- and mid-size banks to decline, making it critical for providers to identify and pursue the right accounts with the most relevant messages (based on the level of financial health)
  • Reenergize pre-COVID cost-takeout playbooks with next-gen elements: As banks come under immense margin pressure, some asset takeovers and carve-out opportunities may arise. A solutions mindset will resonate more soundly with clients than a pure talent-led play. Providers should plug gaps by working with technology partners and/or bring in-house technology assets.

We expect an increase in offshoring intensity and a push for captive setup conversations through a build-operate-transfer (BOT) model approach. Service providers should watch the direction of US dollar prices as commercials will need to be revised for the foreign exchange (FX) impact (the double impact of potential rate reversal and wage inflation)

  • Support clients on product/portfolio diversification strategies (long-term): BFS firms entering and/or expanding their asset and wealth management business as part of their revenue diversification plan will spike. We hold onto our growth forecast in this segment with renewed affirmation from the market
  • Pivot to growth pockets that will be less impacted: Not all lines of businesses will be equally affected. There’s a glimmer of hope for a revival in investment banking, private equity, treasury, and brokerage spending on technology outsourcing. However, cards and payments will stay flat, and lending might struggle

Looking ahead, BFS firms will cautiously approach technology and outsourcing spending, resulting in another quarter of soft demand. We also expect increased medium-term regulatory actions leading to spending increases across risk and compliance functions for non-SIFIs.

Rippling effects across geographies

The recent bank failures have an underlying mix of bank-specific (micro) and macro-economic factors in play. The macro factors have the potential to increase fear in the markets (and depositors) as government bond yields have shown signs of reversing their course, and the added factors of slower economic recovery, inflation, high-interest rates, and the resulting layoffs in specific sectors add further pressure.

Credit Suisse saw a 20% fall in share price on fears of a liquidity crunch on March 15. This also impacted shares of other European banks, such as BNP Paribas, Societe Generale, Commerzbank, and Deutsche Bank falling between 8% and 10%.

We are closely observing the market and regulatory actions and are available for any questions you or your teams might have about the impact of these latest banking trends. Please reach out to Ronak Doshi, [email protected], Kriti Gupta, [email protected], or Pranati Dave, [email protected].

Learn about key trends and the outlook for the global services market in 2023 in our webinar, Global Services: Lessons from 2022 and Key Trends Shaping 2023.

Experience, Data, and Trust – The Industrialization of Data-driven Personalized Experiences | Blog

Balancing experience with data and trust is essential to delivering engaging personalized experiences for customers and driving business success. Developing a robust and scalable automated process for data-driven personalization is critical for enterprises to win in the evolving personalization and interactive experience segment. Read on to learn more.  

Customer experiences have become increasingly prevalent with the democratization of the internet, coupled with significant technological and data processing advancements over the past few years. Enterprises are now realizing the value of prioritizing the people side of business. Creating positive personalized experiences for customers can foster loyalty, increase customer satisfaction, and drive repeat business. On the other hand, negative experiences can damage a reputation and reduce customer loyalty. Let’s explore the importance of personalization.

Personalization – then, now, forever

Personalization is not a new concept. It has existed for decades. Enterprises must capture users’ attention and stand out to thrive. According to Everest Group estimates, more than 70% of consumers interact with a personalized promotional message.

Personalization, more commonly known as “persona-based personalization,” mostly involves grouping users into segments or personas based on common characteristics or behaviors. This approach can be effective in delivering relevant content or offers to a large group of users with similar interests or needs, based on demographics, purchase history, or browsing behavior.

Today, technological advancements have changed the landscape. Categorizing consumers is difficult because they don’t have just one interest area. The plethora of information available online has shifted the power to consumers who determine their preferences, disrupting brands that are no longer in charge.

As a result, brands now are also adopting “person-based personalization,” a form of personalization that considers the individual’s unique needs and habits instead of categorizing the user into specific buckets. Personality-based personalization is a 1:1 approach, where enterprises focus just on the customer as an individual. Everything revolves around the individual as a person, ranging from interactive experiences to advanced personalized marketing strategies. While persona-based personalization involves a large sample size, person-based personalization involves a sample size of just the individual.

Because person-based personalization has the potential to deliver high returns on investment (ROI) to enterprises, deploying an industrialized process for real-time person-based personalization is essential.

While most brands have invested in personalization, some remain reluctant to fully embrace real-time data-driven personalization at scale, which involves personalizing every touchpoint in the customer’s journey based on real-time context. This method requires a unique interplay of data, intelligence, and omnichannel strategies. Developing an industrialized process for delivering individual personalization beyond the required data analysis is essential for enterprises.

Data-driven personalization at scale is the need of the hour

Data is the most critical requirement for delivering effective personalization. Personalization is driven by insights into individual preferences, behaviors, and needs that only can be obtained by collecting and analyzing data. Data collection needs to be well-thought-out. Enterprises require large volumes of data collected from multiple sources, and this data needs to be of good quality, accurate, and relevant because poor-quality data can lead to incorrect insights. Collecting diverse and up-to-date information is another important aspect.

The scope of data gathering has increased too. In the past, customer data was mainly collected via offline surveys, point-of-sales, and telecommunication, just to name a few. But the increased digitization supplemented with advancements in data and analytics has greatly impacted personalization by also allowing for collecting and analyzing vast amounts of data through digital channels. This has led to more seamless personalized experiences for users and has helped companies build deeper relationships with their customers.

An Everest Group study suggests that 78% of startups in the customer experience (CX) space leverage Artificial Intelligence (AI) to develop more relevant and engaging solutions for customer conversion, engagement, and retention. With the rise of AI, personalization has become even more precise and can consider a wider range of factors such as emotions, mood, and context.

However, significant investments are required if enterprises want to set up in-house industrialized data collection and analysis. This is where data platforms come into the picture. Data platforms can be thought of as purpose-built systems or infrastructures to collect, manage, and process large data amounts. It typically includes technologies and tools for data storage, data processing, data integration, data security, and data governance.

Data Experience Platforms (DXPs) offer a  collection of tools such as Digital Asset Management (DAM)Customer Relationship Management (CRM), Customer Data Platforms (CDP), and personalization tools that can meet the needs of enterprises, as illustrated below.

Exhibit 1. Data collection tools for aiding personalization efforts

Picture1

How privacy and data guidelines affect user data collection

As discussed, data is essential to personalization. Clearly, the more data enterprises have, the better insights they can gain, and the better experiences they can provide. However, in today’s digital environment, user safety and trust are crucial. Consumer awareness is on the rise, with people growing increasingly skeptical about sharing their data. Concerns over how personal data is handled and safeguarded by enterprises are growing.

According to the United Nations Conference on Trade and Development (UNCTAD), 71% of countries today have some legislation around data protection and privacy, while 9% have draft legislation. Stringent data regulations such as the General Data Protection Regulation (GDPR) in the European Union, Nigeria’s Data Protection Regulation (NDPR), The California Consumer Privacy Act (CCPA), etc., have provisions to heavily penalize enterprises misusing consumer data.

Adding to this is the increasing push to eliminate third-party cookies. While browsers such as Apple Safari and Mozilla Firefox have already taken the step, market leader Google Chrome also has announced its intention to phase out third-party cookies by 2024, extending its earlier deadline. This has brought into focus the collection of voluntary data from users (Zero-party data) and first-party sources (1P data).

Zero-party data is a valuable information source for enterprises as it provides the best clarity to individual preferences. Developing a trust-based relationship with users and having total transparency about the use cases of zero-party data is essential for enterprises. Establishing a trust-based relationship might lead users to voluntarily provide more insights.

First-party data collection also needs to be transparent and strong security measures should be implemented to protect personal data. Sensitive data must be encrypted, security regularly audited, and effective access control measures adopted. Brands need to consider the needs of empowered users by honoring their “right to forget” and “untraceable” requirements.

As enterprises possess an enormous amount of users’ personal data, they also need to take the moral responsibility to protect that data. Customers who provide their data to enterprises understandably want their data to be protected and not misused without their knowledge. According to Everest Group estimates, more than 50% of customers are willing to share their personal data with companies but only with a clear understanding of how it will be used.

Combining automation with data and trust

Winning user trust and gaining access to more voluntarily provided data is no doubt essential to achieving better person-based personalization. But this data needs to be utilized in the best manner by making use of tools (such as personalization engines and marketing automation tools) to set up an industrialized workflow for large-scale 1:1 person-based personalization. Without a robust and scalable automated process for large-scale person-based personalization, enterprises tend to lose.

Exhibit 2. The industrialized workflow for achieving data-driven 1:1 personalization

Picture2

Greater trust = Greater data = Greater personalized experiences

Personalization starts from a persona-based mechanism and, with an ever-increasing user base, shifts to person-based personalization. User data is the only way to go forward. User data and trust need to go hand in hand. To win customer attention, trust, and loyalty, enterprises need to know how to use the right data at the right time and how to go ahead with individual personalization without breaching the intrusion barrier.

Exhibit 3. Relationship between Trust and Personalization

Picture3

The outlook

Overall, the personalization and interactive experience landscape has become more complex and diverse, requiring brands to constantly adapt and stay up to date on the latest trends and technologies to reach and engage customers. However, even with increasing investments, the ROI might decline due to the heightened competition making it more challenging to stand out and generate returns, technical limitations, and privacy concerns, just to name a few.

Enterprises need to break down their user base into smaller, more targeted segments to achieve 1:1 person-based personalization and tailor products, services, and experiences to each individual user’s specific needs and preferences. The smaller the segments, the better enterprises can tailor their personalization efforts and achieve a more effective 1:1 experience.

In addition to the investment level, the strategy and implementation of personalization and experience efforts also needs to be considered. A well-designed and executed strategy can generate returns even with increasing investments. By balancing experience with data and trust, companies can deliver engaging personalized experiences that build strong relationships with users and drive business success.

If you have questions about selecting the right data platform or want to know more about personalization, interactive experiences, or discuss developments in this space, reach out to our analysts at the Adobe Summit, or get in touch with the Everest Group team at [email protected], or [email protected].

To learn about the comprehensive roadmap for enterprises to achieve business outcomes and mitigate challenges in their journey to accomplish truly industrialized 1:1 person-based personalization, see our report Emergence of CDPs: Charting the Path to Data-driven Personalization.

Check out our webinar, Strategies for Customer Experience (CX) Success in an Uncertain World, to learn key trends and hear recommendations on what to prioritize to deliver exceptional CX.

Top Emerging Technology Trends: Six Things Sourcing Needs to Know in 2023 | Webinar

Access the on-demand webinar, which was delivered live on February 23, 2023.

Evolution in the IT function is inevitable. The very nature of technology is constantly shifting. Sourcing teams can better manage value from emerging technologies across the adoption cycle, from Research and Development (R&D) and exploration to scaled adoption.

In this webinar, we explored six things sourcing teams can do to stay ahead of new technology trends, including:

  • How to understand the emerging technologies landscape in the near term (12-24 months) and medium term (2-5 years)
  • How to recognize where these emerging technologies are on the adoption curve, and what their impact could be on sourcing dynamics and strategy
  • When to adapt existing category strategies and when to create new categories to support the adoption of emerging technologies
  • How to align the evolution of supplier segmentation and portfolio strategy to the new IT landscape
  • How to identify the roles and skills of the future to stay ahead of business and IT demand
  • Ways to measure value from emerging tech services category management

Who should attend?

  • IT sourcing leaders
  • Sourcing managers
  • Category managers
  • Heads of indirect sourcing

Future-proof Your Organization with a Modern and Efficient Core System in the Era of Scarce Budgets | Webinar

Webinar

Future-proof your organization with a modern and efficient core system in the era of scarce budgets

January 25, 2023
10:00 AM PT | 1 PM ET

Join Everest Group’s Ronak Doshi and other industry experts on this webinar to understand how modernized, efficient, and future-proof core systems can be created at organizations.

Key takeaways for attendees include:

  • Considerations and options to modernize core systems in the era of conservative budgets
  • Methods for a time-tested, future-proof, and scalable core architecture
  • Ways to accelerate modernization through collaboration with fintech, high-tech, and partner ecosystems
Ronak Doshi
Partner, Everest Group
Bindhu AT
CIO, Wealth Management, BMO
Michael Nitsopoulos
SVP Architecture, Strategy & Innovation, Retail Banking, PNC
Praveen Sharma
VP, Banking & Financial Services Practice, Virtusa
Ayesha Kareem
SVP, Chief Architect - Banking & Financial Services, Virtusa

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