There has been much debate about the evolution of our economic structure and the role of technology in driving and supporting that progress. The Indian economy is on a rapid growth path; According to McKinsey, the economic crisis triggered by Covid-19 could spur action that puts the Indian economy back on a growth path and creates rewarding jobs for 90 million workers by 2030.
Every year we see new trends across industries, but there are certain megatrends that encompass the social, economic, environmental and technological trends on a global scale and are expected to set the industry and economic standards for years to come. Megatrends have begun to influence a variety of business activities, processes and perceptions, and they are likely to shape the future of companies.
Data-driven economy, 5G and the future of connectivity
In recent years, India has embarked on a historic shift towards a data economy that has spawned the megatrend of the data-driven economy. As a result of the proliferation of digital services, Indians produce a significant amount of personal data. The amount of data has doubled globally every three years and is expected to reach nearly 180 zettabytes (ZBs) by 2025.
Proper application of this wealth of information opens up a wealth of opportunities for companies to embrace and foster a truly data-driven culture within their organizations. The influence of data is redefining “intelligence” across all industries, driving it to innovation, growth and well-being. Cloud computing provides the right tools to do this and lays the foundation for using data as an asset, and cloud providers like Oracle help companies become more effective.
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We are also witnessing the integration of megatrends, leading to the advancement of interdependent and multidimensional trends. For example in the telecommunications 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 capitalizing on ‘megatrends’ by making strategic cloud investments. Commenting on Airtel’s journey to the cloud, Prasad Rai, Vice President, Global Strategic Clients Group, Oracle India said, “Airtel is committed to positioning itself as a cloud-savvy and digitally-ready organization. They are a big customer of Oracle OCI, HCM and ERP and are maneuvering themselves as heavy adopters of megatrends and taking the digital path by cloudifying their processes and integrating them with 5G technology, allowing them to realize greater benefits.”
Pradipt Kapoor, CIO, Bharti Airtel spoke about the digitization in telecom and the integration of Oracle cloud applications and said about the deployment of cloud apps: “The telecom industry is experiencing tremendous growth and massive digitization. We wanted a technology partner that could meet these dynamic needs and help us build a digital Airtel as we transition to cloud-based applications.”
Rise of embedded finance
Essentially, embedded finance is a new, ecosystem-based innovation that enables financial services to be delivered directly into non-financial websites, mobile apps, and business processes. It allows non-banks and non-financial institutions to integrate financial transactions into their platforms. Embedded finance has recently become a major megatrend due to changing consumer behavior and shopping habits. The rise of e-commerce, delivery platforms, and online payment methods like mobile wallets, UPIs, and embedded payment gateways has transformed the entire selling and buying ecosystem.
As more consumers experience rising incomes, their financial needs are likely to increase and become more demanding. According to McKinsey, Asia’s share of active digital banking users has increased to 88% from 65% four years ago. This is where embedded finance is gaining ground to gain access to financial services without having to rely solely on banks. Globally, the embedded finance market is expected to generate $230 billion in revenue by 2025, more than 10 times the 2020 figure of $22.5 billion.
Sophisticated technologies and especially cloud computing serve as an important prerequisite for embedded finance. Oracle, for example, integrates embedded finance into its offerings. Oracle’s solution enables banks to offer personalized digital banking experiences. Through intelligent agents, the solution offers seamless one-click connectivity to popular Oracle and third-party ERP platforms and banking experiences.
“Embedded finance has gained prominence in the financial ecosystem as more fintechs invade what has traditionally been the domain of banks. However, fintechs need the platform capabilities that banks are providing, and this is where embedded finance comes into its own,” said Shalini Warrier, Executive Director and Head – Retail, Federal Bank.
As our society continues to be disrupted by digitization, there are growing concerns about the impact on jobs, wages, resource efficiency and security. One of the goals of today’s industry leaders is to create long-term value for all stakeholders, with a strong focus on growth. In this case, it is crucial to understand, evaluate and intelligently integrate these megatrends into business processes in order to create value-oriented business models.
WHAT STILL LIES AHEAD
Data asset management as a top priority for CEOs and CIOs
Data doubling every three years worldwide; is expected to reach 180 zettabytes (ZB) by 2025
5G, edge computing, cloud, AI, robotics to help telcos with real-time automation and enhanced connectivity
The embedded finance market is expected to reach $230 billion in revenue by 2025
