Powering connected enterprises together
Welcome to KPMG Insights, a monthly newsletter capturing the top business trends and insights you might have missed this month.
In May, we explore our interconnected world and deep dive into how technology is pivotal in bridging physical distances and fostering strong business connections. Organisations today are actively harnessing this power to collaborate more effectively, strengthen client and partner relationships, and ultimately thrive in this dynamic digital ecosystem.
In this issue, we examine how industries like financial services and telecommunications are adapting to the changing digital landscape. We delve into the transformative role of fintech in creating personalised customer experiences, the metamorphosis of traditional telcos into techcos and the pressing need for responsible AI regulations.
Fintech driving connected enterprises
Fintech has reshaped financial services, providing users with unparalleled speed, convenience and choice. However, succeeding in today’s dynamic environment requires fintechs to transform into connected enterprises. This evolution involves integrating data across their organisations to tailor products, enhance customer experiences and build stronger stakeholder ties.
At the heart of this change lies advanced analytics supported by robust data foundations. These are essential for effective risk management, regulatory compliance and cultivating user trust. By employing cutting-edge technologies such as artificial intelligence (AI) and cloud computing, fintechs can automate processes, optimise operations and rapidly scale their services.
Equally vital are strategic partnerships. Collaboration with technology providers offering solutions like Software-as-a-Service (SaaS) and Banking-as-a-Service (BaaS) grants access to specialised expertise and resources, fostering agility and expanding service offerings. This strategic approach empowers fintechs to deliver customised, secure financial solutions, paving the way for a truly connected ecosystem.
Empowering techcos to shape the future of communication
Shrinking margins, evolving customer demands and disruptive technologies, have placed pressures upon the telecommunications (telco) industry to adapt or be left behind. Telcos of the future – techcos – are poised for a significant revolution that embraces innovation, customer-centric design and digital agility.
Forward-thinking techcos differentiate themselves by utilising technology to deliver exceptional customer value. Operating on cloud-based architectures, they prioritise flexibility, scalability and a culture of continuous innovation. Leveraging advanced technologies like automation, data analytics and AI, they provide bespoke offerings and streamlined operational processes. Moreover, they champion collaboration through open APIs, nurturing a vibrant ecosystem of interconnected services.
Through this tech-driven metamorphosis, techcos unlock a host of opportunities. They not only tap into new revenue streams but also elevate the overall customer experience and optimise operational efficiency.?
Fostering connections through responsible innovation
As AI adoption continues to grow, navigating the regulatory landscape surrounding it has become increasingly complex. While formal legislation is still in the developmental stages, existing regulations have already extended to automated systems across their entire lifecycle, from design to deployment. This underscores the imperative for comprehensive risk management.
Consequently, companies must implement appropriate risk and compliance measures to leverage the full potential of AI. This entails establishing robust governance frameworks, ensuring transparency and addressing concerns related to bias, discrimination, privacy and security. Building and maintaining consumer and regulatory trust is paramount, achieved through demonstrations of accountability, fairness and ethical AI use.
In this ever-changing environment, collaboration among businesses, regulators and stakeholders is essential to shape effective AI regulations that facilitate progress while mitigating risks. Regulatory frameworks need to be flexible and adaptable to keep pace with technological advancements. Through concerted efforts and a focus on risk management and trust-building, businesses can steer AI innovations toward responsible and sustainable growth, ensuring that regulatory frameworks evolve in tandem with the advancement of AI technologies.