1、FSI 2030Financial Services and Insurance Brands Marketing Transformation in the Next DecadeForewordThe analysis that follows is based on findings from dentsus The Age of Inclusive Intelligence report,a study that combines insights from consumer surveys gauging our expectations for the next decade an

2、d predictions from world renowned futurists to identify the long-term consumer trends that will shape how brands need to evolve their go-to-market strategies from here on out towards 2030.Many of the trends already in motion,such as the growth of online commerce,together with growing consumer demand

3、 for environmentally responsible brands,were accelerated by the events of 2020 and their aftermath and have also profoundly informed our expectations in the present.In this context,our vision of consumer trends provides new perspective on the drivers of long-term,sustainable brand growth.The Age of

4、Inclusive Intelligence analyzes our path to 2030 examining four forces,each comprised of three market trends,that will redefine the market throughout the next ten years.In applying this lens to the financial services and insurance sectors(FSI),this e-book leverages insights from industry specialists

5、 across the dentsu network to map what implications these 12 trends may have for FSI companies,providing a series of marketing-focused recommendations for brands operating in the sector.Specifically,the implications mapped in this book were thought out considering the landscape of organizations deli

6、vering personal finance and banking,wealth management and investing,as well as insurance services,and,in the case of implications only applicable to some of these categories,this nuance will be noted.Its also important for us to remark that this book absolutely does not provide financial or marketin

7、g advice or recommendations to individuals or organizations,but rather imagines marketing strategies that may help FSI brands connect with consumers in a progressively transforming landscape.While looking at such a vast horizon inevitably includes some level of speculation,we have also included,when

8、 possible,examples of FSI brands that are already making investments today to evolve their value proposition in the direction we envisioned.In an age of uncertainty,brands need to discard past playbooks,compete on innovation and imagine the future if they want to achieve true differentiation and red

9、efine what next means in their category.vNavigating this reportThe Age of Inclusive Intelligence discusses four macro-forces that will inform the evolution of consumer behaviors throughout this decade:Universal Activism,Synthetic Society,Bigger,Bolder Brands and the Human Dividend.Each chapter in th

10、is report examines the implications of each of these forces for the financial services and insurance industries.Each force is comprised of three trends that we believe will have a level of impact on the sector.To help the reader navigate this narrative,here is a breakdown of the journey ahead:This c

11、ompass will reiterate the broader context for the trends and industry opportunities discussed throughout the report.FORCE 04The Human DividendFORCE 01Universal ActivismFORCE 02SyntheticSocietyFORCE 03Bigger,Bolder BrandsTREND 01Rise of the titan brandsTREND 03Emotion trumps objectivityTREND 01Acclim

12、atize nowTREND 03Tech togethernessTREND 02Every brand is a health brandTREND 01What robots cant doTREND 03Kaleido-identityTREND 01Beyond humanTREND 035-star citizensTREND 02Objective-free playTREND 02A new data paradigmTREND 02Virtual sets the standardMost visibly to consumers,weve also witnessed a

13、major shift to digital payment systems away from paper cash and coins.A move accelerated by the COVID-19 pandemic and rapid progress of technology development.5The role of FSI brands and institutions in helping customers navigate these fundamental changes cannot be underestimated and this,together w

14、ith a bounce back from the pandemic,goes some way to explaining the 17.8%growth in global advertising spend in the sector in 2021,following a 2.4%decline in 2020.Financial services ad spend is forecast by dentsu to further rise by 8.5%in 2022,slightly lower than the overall predicted growth across a

15、ll industries of 8.7%.6Despite the headwinds of the wider economy,however,it seems that FSI brands remain convinced of the power of marketing and advertising to communicate the sense of rapid change and modernization that is carrying the sector forward.At the same time,Financial Services brands are

16、also preparing for the next wave of digital disruption,investing in fintech innovation through development or acquisitions while assessing the long-term appeal of decentralized finance(DeFi)among consumers.Younger generations will expect from FSI brands personalized customer experiences and will rew

17、ard brands that help them gain a greater financial education through non-traditional solutions.4This report will look forward to 2030 but,given the significant shifts that have played out in recent times across the FSI sector,its first worth viewing likely changes in consumer behavior in the context

18、 of whats happened in the previous 24 months.Turbulence in the broader economy-not least rising global inflation and a cost-of-living crisis that has hit many consumers-is having an impact across the FSI sector.U.S.inflation remained high in August at 8.3%(it was 8.5%in July).1 In response,central b

19、anks in major markets are likely to continue to focus on raising interest rates to combat rising inflation,in turn putting pressure on consumers through rising mortgage and loan rates.While rising interest rates leave less scope for finance brands to compete aggressively by offering ultra-low terms

20、to consumers,some are adjusting by positioning themselves as helpful advisors who can assist customers in better managing their finances during hard times.2The FSI sector has also been impacted by three macro forces that are driving major changes:decentralized finance,transfer of wealth,and the move

21、 to a cashless society.Financial products are becoming more automated and searchable online,lessening the need for advisors such as banks and brokers.3 Meanwhile,there is a sizeable transfer of wealth underway driven by both generational and societal factors.The Baby Boomer generation,born 1946 to 1

22、960 and one of the wealthiest ever,is moving into retirement,while broader education and knowledge around financial products is leading to wider adoption of investment products across society.4FSI 2030/INTRODUCTIONIntroduction An Uncertain Economic Environment and Rapidly Changing Consumer Expectati

23、onsvFORCE 01Universal ActivismIn the 2010s,brands obsessed about meeting consumer needs.But the term consumer is itself too narrow a concept.In the 2020s,brands will need to reconceive of their customers as activists,driven by a new range of influences and causes.This chapter will examine three tren

24、ds:Acclimatize NowA New Data ParadigmKaleido-identitytowards climate goals,but not enough to limit or reverse the impacts of global warming.However,this represents an opportunity for more progressive brands in the FSI sector,not least in terms of developing new financial instruments and markets that

25、 recognize and reward progress on environmental and sustainability metrics.There is also a specific role to play for insurance companies in finding ways to mitigate the impact on people who are disproportionately disadvantaged by the impact of climate change.By 2030,we will have firmly entered the a

26、ge of climate adaptation.The UN Intergovernmental Panel on Climate Change has set 2030 as the date by which the world needs to halve its greenhouse gas emissions in order to stand a reasonable chance of limiting global warming to 1.5 degrees by the end of the century.7Extreme climate events are alre

27、ady having an impact on global populations,and this new climate reality will most harshly impact todays youngest consumers and future generations.This is a future were already aware ofnearly eight in ten people we surveyed across China,Japan,the United Kingdom and the United States are concerned tha

28、t climate change will have irreversible consequences.8 Businesses,governments and consumers need to act collectively to avoid this dystopian future by focusing on reducing emissions and adapting to the negative impacts of climate change.The most probable future scenario for the coming ten years is a

29、 business-as-usual approach with some progress being made FSI 2030 FSI 2030/UNIVERSAL ACTIVISMAcclimatize NowTR E ND 0 16The creation of new“risk pools”in collaboration with institutions such as the World Bank and European Union is one possible way forward in terms of spreading risk and providing in

30、surance at lower costs to people in zones more adversely affected by climate change.For instance,the African Risk Capacity Group,an arm of the African Union,pays claims to vulnerable people in Africa through a range of insurance products part-funded by global reinsurance markets.10Eco-responsible Ba

31、nking&FinanceFSI brands can appeal to sustainability-minded consumers by offering portfolios and investment funds that are environmentally responsible.In November 2020,climate-friendly investing app Cooler Future raised 1.4 million.The app makes it easy for customers to invest in companies that are

32、reducing carbon emissions or are removing CO2 from the atmosphere.117Acclimatize Now-ImplicationsInvest in Environmental ResponsibilitySustainability Expectations Are Here to StayWhile there is some pushback on the current definition of ESG(Environmental,Social and Governance)goals,consumers expecta

33、tion that brands should contribute to a better and more equal future remains strong.Financial companies should cater products to the 95%of corporations that will have some type of sustainability investment.For example,Deutsche Bank has launched a green deposits program for its corporate clients that

34、 enables customers to use cash deposits to meet their sustainability goals by accessing the banks“green asset pool”.This pool makes loans to companies and projects that support the transition to clean energy sources and an environmentally sustainable global economy.9 Dont Penalize the Climate-disadv

35、antagedInsurance companies should seek more creative ways to spread risk,to avoid perception of disproportionality hurting people that are already facing unequal distribution of climate impact.FSI 2030/FSI 2030/UNIVERSAL ACTIVISMTR E ND 0 1More broadly,however,the large-scale adoption of privacy-fir

36、st behaviors and services will be highly problematic for many brands.The loss of access to customer data will hit the efficiency of marketing,customer understanding and corporate planning.To address this,the FSI sector should look towards ways of incentivizing people to share their information,inves

37、t in AI solutions that provide bespoke,private advice,and introduce greater levels of transparency in terms of informing customers exactly how their data is used and shared.By 2030,more consumers will deploy personal data assistants to manage their relationships with brands,creating a new power para

38、digm.Well also see the emergence of privacy islands:consumers who are willing to forego convenience and access to digital services in preference for control over their data,thereby becoming almost invisible to brands.Close to half(46%)of people we surveyed agree they would prefer to receive an infer

39、ior service than share even basic personal data such as their location and age.Consumers are also likely to demand greater control and transparency when it comes to use of their data by both brands and public bodies.Seven in ten consumers we surveyed are afraid that by 2030 they will have less contr

40、ol over their data than they do today,and eight in ten consumers would like more control over the personal information they give to companies.12Paradoxically,this will lead to many consumers handing over control to smart data services,in an effort to gain greater personal control.This could stimulat

41、e rapid growth in the adoption of personal AI services.FSI 2030/UNIVERSAL ACTIVISM8A New Data Paradigm TR E ND 02Open Banking May Garner Consumer SkepticismIncreased consumer privacy-first mindsets may lead to pushback on API-driven open banking.Banks and lenders should be completely transparent in

42、disclosing to customers the sources of their data in decision making.9A New Data Paradigm-ImplicationsTR E ND 0 2 Data-based DecisioningUsage-based Products IncreaseAs todays generation of consumers come to expect usage-based consumption(think Uber,Air BnB,WeWork),financial brands should start consi

43、dering business models such as Usage-Based Insurance(UBI).The global UBI market is expected to grow annually at 26.9%from$18.9 billion in 2021 to reach$78.9 billion by 2028.13State Farm partnered with Ford in February 2022 to offer U.S.drivers access to the insurance companys Drive Safe&Save UBI pro

44、gram,which adjusts premiums to fit an individual vehicles mileage and customer driving behavior.14The Holistic Robo-advisorFinancial Services companies should consider developing and promoting AI-driven Holistic RoboAdvisors that can provide financial advice tailored to a user and are able to respon

45、d to real-time changes to someones situation.From investing to insurance and lending,such a service could integrate with future personal assistants.U.S.bank Truist Financial has launched Truist Assist,an AI-enhanced virtual assistant that uses natural-language processing and understanding to help an

46、swer customer questions and provide financial information in digital channels.15FSI 2030/UNIVERSAL ACTIVISMThis diversity will provide consumers with new sources of belonging and identity that FSI brands will need to navigate carefully,requiring sensitive engagement and investment to stay heard,resp

47、ected,and relevant.We will see the emergence of more brand tribes,groups of people linked together by a shared belief around a brands values.Factors such as brand authenticity,experiences felt through interaction with the brand,and a collective sense of belonging will contribute to people feeling pa

48、rt of this.FSI brands can embrace this change by moving away from demographic data when making decisions about customers,evolving their product marketing strategies to target more distinct tribes,and understanding when its the right time to take a stand on cultural values.By 2030 the concept of iden

49、tity will have evolved beyond sex and gender to incorporate a range of values,such as sustainability,more granular minority rights and urban dwelling.This is reflected in the finding that nearly three-quarters(71%)of people we surveyed think that by 2030 the concept of identity will be more diverse

50、than it is today.16Sustained urbanization during the next decade will continue to strengthen city identities.At the same time,the COVID-19 pandemic has heightened peoples sense of community and could boost a simultaneous shift towards nationalism.As the coronavirus heightens awareness and appreciati

51、on of collective action,the importance of community,local areas and neighborhood to personal identity may increase.We expect a continuing shift away from traditional identity markers towards more granular and individual identity markers,reflecting the growing level of diversity throughout the 2020s.

52、FSI 2030/UNIVERSAL ACTIVISMKaleido-identity TR E ND 0 310To Pick a Side or Be Neutral?Historically,large banks and insurance companies have largely remained neutral in the culture wars.However,with growing expectations from consumers for brands to align to their values,financial companies will need

53、to decide whether staying neutral or picking a side is the best course of action.This is highlighted in our research that shows the clear risks facing brands who decide not to take a stance on an issue.For instance,50%of consumers stated that they had taken some type of action after a brand remained

54、 silent on key social and political issue,and 24%said this action involved switching to another brand.More specifically,54%of consumers stated they were less likely to support brands that stayed silent on the topic of racial equality.19Make Decisions Beyond DemographicsFinancial brands should start

55、employing additional data points in lending considerations,moving away from historical and demographic data.This will include AI-driven predictive algorithms and newer identity markers that determine a users risk and desirability.HSBC announced in July 2022 that its UK bank would stop collecting dat

56、a on the gender of customers using its Kinetic mobile-first account and its new mortgage service,in a move to provide more inclusive services.The change was part of a wider review that is expected to see further shifts in the use of bank account and loans data.17 Catering to the New Segment TribesFi

57、nancial services companies should ensure that their product strategies offer choices to newer segment tribes that will emerge.Those that can capitalize will see a first-mover advantage.John Hancocks Vitality life insurance product rewards athletes and fitness enthusiasts who exercise regularly with

58、25%premium discounts for making healthy choices and provides rewards points for those who eat wholesome food and meditate.18 FSI 2030/UNIVERSAL ACTIVISMKaleido-identity -ImplicationsInnovate for a Community-driven MarketTR E ND 0 311FORCE 02Synthetic Society In the 2010s,consumers and brands alike h

59、ave placed a premium on natural products and ways of living.In the 2020s,well see a widespread embrace of synthetic enhancements and virtual experiences.This chapter will examine three trends:Beyond HumanVirtual Sets the StandardTech Togethernesssatisfied by this development.Two-thirds of consumers

60、globally expect in the next five to ten years organizations to use technology in a way that has positive societal impact.21As the definition of what it means to be human changes dramatically,FSI brands will need to rethink their marketing communication,channel and content strategies.This could invol

61、ve developing products for long tail retirement,new categories of life insurance,and specialist loans to finance biological augmentation.By 2030,exponential advances in biomedical and technological research will enable people to upgrade their cognitive and physical capabilities.Expectations of perso

62、nal health and well-being goals will inevitably rise in a world in which augmentation procedures are increasingly available,catalyzed by the coronavirus pandemic which brought the issue of optimal health to the forefront of peoples minds.Another major field of scientific progress we will witness dur

63、ing the next decade is the development of brain-computer interfaces.Our own consumer survey finds that,by 2030,around two-thirds of consumers would consider having a microchip inserted into their brain to improve physical senses,extend life expectancy,improve mental health and learn new skills to im

64、prove job prospects or personal development.20 While technological and biological upgrades may appeal to many,we predict access to these will be limited by affordability.The overburdening of health systems worldwide during the coronavirus crisis may result in louder calls for democratized healthcare

65、 innovation,but this is likely to exclude truly transformative augmentation.Most consumers will not be FSI 2030/SYNTHETIC SOCIETYBeyond Human TR E ND 0 113Bio-lendingAs gene-editing and augmentation move to wider audiences and become table stakes,consumers may seek loans to finance these therapiessi

66、milar to a student loan today.Financial institutions should begin exploring ways to profitably underwrite such loans.There is the opportunity to build on the existing innovative payment mechanisms for gene therapies in the U.S.and Europe.For instance,Kymriah,owned by Novartis,is medication for the t

67、reatment of B-cell acute lymphoblastic leukemia which uses the bodys own T cells to fight cancer.The treatment is provided in the U.S.on an outcome-based payment basis-patients arent invoiced unless they haveexperienced a positive response within 30days.23Long Tail RetirementAs more people live long

68、er,and spend more years in retirement,consumers will face additional pressure to plan and save accordingly.Firms with Wealth Management offerings will need to respond to this trend,offering more dynamic investment and life-planning advice that incorporates second and third post-retirement careers.In

69、 2021,Bank of America launched Personal Finance Strategy,for corporate retirement plan clients to offer their employees.Designed to address the rising complexity of planning for a potentially long retirement,the program offers personalized insights,guidance and tools,as well as access to digital inv

70、estment management services.22 Bio-matic Life InsuranceSimilar to telematics in Auto Insurance,Life Insurers should explore how new wearable,exoskeleton and prosthetic technologies could open up a new category of bio-matic life insurance.As people become able to live safer and healthier,data feeds f

71、rom these technologies could make life insurance underwriting more dynamic,and accurate.FSI 2030/SYNTHETIC SOCIETYBeyond Human-ImplicationsSavings&Plans for the Enhanced HumanTR E ND 0 114The potential utility of augmented technology has been demonstrated more clearly due to the COVID-19 pandemicwit

72、h the introduction of new services that seek to replace in person expertise and service not accessible during the lockdown.Alongside personal AR devices,augmented technology will be used increasingly across a range of brand products to reshape how we view the world.There are clear opportunities here

73、 for FSI brands in the form of using AR and VR technologies to provide personalized experiences and advice to customers and introducing eSports into their sponsorship initiatives.Over the course of the next decade,a new generation of augmented technology will elevate day-to-day experiences,overlayin

74、g audio and visual content across many aspects of a consumers life in 2030.The sophistication and scale of virtual and holographic technology in the 2020s will extend artificial experiences to the mainstream across leisure and cultural events.For FSI brands,this means new opportunities for sponsorsh

75、ip and partnerships,as well as developing their own augmented experiences.And the growing influence of activities such as eSports is expected to spill over into peoples lives-62%of people we surveyed said that lockdowns have made them more interested in discovering how technology can be used in ente

76、rtainment.24Another game-changing advancement during the 2020s will be the rise of haptic technology(technology that can create an experience of touch)used in conjunction with immersive experiences.This technology will allow consumers to feel physical sensations corresponding with their virtual expe

77、rience,enabling more precise mimicking of real-life events.FSI 2030/SYNTHETIC SOCIETYVirtual Sets the Standard TR E ND 0 215Santander,the global banking brand headquartered in Spain,has agreed a deal to become a main sponsor of professional eSports competitions League of Legends European Championshi

78、p and the Liga Latinoamerica.The bank views the 100%digital agreement as a way to complement its other global sponsorships in Formula One and with Spanish soccers LA Liga.26Virtual Sets the Standard-ImplicationsFSI Goes Personal Through VirtualAdvanced Virtual ConsultationsAs immersive VR and AR tec

79、hnologies become mainstream,FSI brands can offer highly personalized virtual consultations.More convenient for the consumer than having to travel to a branch or office,the experience is actually better,allowing representatives to present graphs,charts and animations in real-time.JP Morgan is among t

80、he first major banks to establish a presence in the metaverse,opening a virtual lounge for customers to visit in the blockchain-based world Decentraland.In the Onyx Lounge,a users avatar can interact with experts talking about the cryptocurrency market,and JP Morgan sees this as a step towards the v

81、irtual world replacing some of its direct human interactions with customers.25Esports SponsorshipsBig DTC Insurance,Banking and Wealth brands will want to consider sponsoring popular eSports celebrities(teams,clans,and leagues),as their growing fanbases are also prime prospects.Many FSI brands who h

82、ave had success with traditional sports sponsorships(TD Arena in Boston,Nationwide/Peyton Manning sponsorship)may be among the first to explore.FSI 2030/SYNTHETIC SOCIETYTR E ND 0 216Thanks to technological innovation,being remote is not the compromise it perhaps once was.A legacy of the COVID-19 cr

83、isis is the realization among consumers that it is OKeven preferableto dial in remotely,to watch and work from afar,to experience at a distance.The tech to support this(largely)worksand will only improve.In the next decade,technology will be increasingly leveraged In the next decade,machine learning

84、 advancement will set the scene for personalized companionship in the absence of others.For FSI brands this means grasping the potential of peer-to-peer services and monetizing peoples connections on social networks.for human connection,forging togetherness despite distance or solitude,and democrati

85、zing friendships and intimacy.For FSI brands,this means exploring new ways of communicating with,and engaging,potential customers,through senses in addition to sight and sound.However,there remains a desire for human connection and fear of loneliness is a real issue.Though digital communication with

86、 others has been shown to help mitigate feelings of loneliness and isolation,it cannot replace real life interaction and the human touch,yet.But as technology evolves over the next decade,we can expect it to further redefine the future parameters of relationships and connections,among humans and bet

87、ween brands and consumers.FSI 2030/SYNTHETIC SOCIETYTech Togetherness TR E ND 0 317Investing as a Social ConnectionWhile investing in the markets has never been easier,the power of social media has drawn in entirely new audiences of investors(witness meme stock investing).FSI firms should think abou

88、t how to create and/or tap into social networks as places for people to talk about investing and personal finance.Saxo,the Danish bank and online trading platform,operates a service to enable customers to invest in meme stocks(such as GameStop and Tesla),whose popularity among retail investors is ba

89、sed on social media conversations.“The market is volatile and unpredictable,so make sure you do your research before you invest,”warns Saxo on its website.29 Tech Togetherness-ImplicationsInvestor TogethernessPeer-to-Peer Goes MainstreamPeer-to-peer financial services are growing rapidly,with lendin

90、g projected to rise 30%annually to reach$558.9 billion by 2027.27 While this has the potential to help address the macro trend of increased inequity in banking services(growth of the underbanked)it will change the way traditional banks are viewed by consumers.Financial Services firms should consider

91、 what role they play in the P2P space,potentially making P2P loans a component of their offering.U.S.bank Citigroup and French financial services company Natixis backed German digital P2P lending platform auxmoney to the tune of$500 million.The deal allows auxmoney to fund new loans on its platform.

92、28 FSI 2030/SYNTHETIC SOCIETYTR E ND 0 318vFO RC E 0 3Bigger,Bolder BrandsOver the last decade,consumers have become more empowered,with increasing choice and the ability to engage with brands on their own terms.In the 2020s,the focus will shift to how brands can help meet consumers needs more effec

93、tively across all aspects of daily life.This chapter will focus on three trends:Rise of the Titan BrandsEvery Brand is a Health Brands5-star CitizensRise of the Titan Brands TR E ND 0 120By 2030,consumers will likely select key brands to act as their main lifestyle partners,becoming an integral part

94、 of their everyday lives and spending.For instance,in 2030,four in ten Chinese consumers would consider using a single company for all their lifestyle needs.30 Super-functionality will be the primary driver of brand loyalty,with brands assessed on their holistic benefit to the customers life.The mos

95、t obvious candidates for future Titan brands are Amazon and Alibaba,due to their continued expansion across industries and consumer life in Western and Eastern markets respectively.The projected expansion of these two companies alone illustrates how individual brands can cater for a significant prop

96、ortion of future service and product needs-and both Amazon and Alibaba have made investments in the financial services space.FSI 2030/BIGGER BOLDER BRANDSForesight Factory research demonstrates that the more people use one brand(such as Amazon)for services today,the more open they are to offerings f

97、rom the same brand in future.For example,UK consumers who already use Amazon across five different product or service categories are five times more likely to consider buying a mortgage from Amazon compared to those who only use Amazon for one category.31A mass migration of consumer choice towards T

98、itan brands will place traditional notions of brands further in jeopardy.However,FSI brands can move towards addressing this by finding partnership models to help them work with Titan brands,discovering a niche proposition and a story to tell from such collaboration,while also remaining competitive

99、in terms of great products and services.DeFi vs.the WorldDecentralized Finance(DeFi)avoids any single entity controlling from the center.As popularity grows,regulators and banks are taking note.Banks must innovate to compete;speed,UX,low processing costs and new ways to contract are a must,and loyal

100、ty programs become more important than ever.As of July 2022,the total value locked(TVL)in DeFi amounted to almost$172 billion throughout different DeFi applications worldwide.35Big Tech Moves into FinanceBig tech has subtly launched financial services products that leverage their network effects and

101、 data.FSI brands cant compete on scale so must do so on product and service.Amazon has built and launched tools and services mostly focused on payments,cash deposits and lending(including Amazon Pay,Amazon Cash,and Amazon Lending)and Google and Apple are following suit.These services are aimed at in

102、creasing the number of merchants and customers in its ecosystem by enabling them to sell and buy more and reducing any buying/selling friction.32App=Service Fueled by private and public money,many FinTech companies are building super-apps that offer a growing number of services,catering to the finan

103、cial needs consumers typically get from a traditional bank.FSI brands must either build,borrow or buy to compete.In the eyes of consumers,apps and services are becoming one and the same.Starting out as an alumni-funded lending model,SoFi has become a purpose-driven holistic financial compa ny offeri

104、ng.Meanwhile,in July 2021,Square announced Square Banking,offering a full range of services to small business.This is on top of its successful consumer product,the Cash App,that now accounts for 14%of total revenue(up 171%in Q1 2021).33 In August 2021,Square also bought buy now,pay later business Af

105、terpay for$29 billion.34FSI 2FSI 2030/030/BIGGER BOLDER BRANDSBIGGER BOLDER BRANDSRise of the Titan Brands-ImplicationsFinTech Raises the Bar of Customer ExperienceTR E ND 0 121In light of this,FSI brands can prepare for the future by making greater use of data thats available through wearable techn

106、ology,and in helping people to plan for longer,multi-stage retirement.As we move towards 2030,securing long-term health and extending longevity will be the ultimate goal for many consumers.Disease eradication,better treatments and global regulation have saved and improved the lives of millions of pe

107、ople.Yet the rise of lifestyle-related diseases and a retreat of state health provision in many economies have shifted responsibility for health onto the individualespecially in higher income markets.And,as global affluence continues its upward trajectory in the 2020s,many consumers will have more t

108、ime and money to spend on the pursuit of good health and longevity.Within this context,every brand is now a health brand and will need to identify how it can enhance the well-being of its customers through its products and services.More than half of people globally expect to use tech to monitor thei

109、r health daily,according to our own research,and we expect to see the adoption of print-on sensors and microchip implants,as consumers demand that technology becomes more precise but less intrusive.36 Securing health and longevity in 2030 will be about using technology to mitigate life risks,while f

110、inding solutions to the dangers technology itself presents.FSI 2030/BIGGER BOLDER BRANDSEvery Brand is a Health Brand TR E ND 0 222Health=WealthThe ability to report and monitor our personal health data is becoming increasingly sophisticated through wearable devices.FSI brands,especially insurance,m

111、ust increasingly target and incentivize those with good data.Tech-driven innovators such as Healthy are tailoring Medicare products based on the policy-holders healthy lifestyle,further segmenting off some of the most preferred/low risk consumers.37Multi-phased RetirementAs life expectancy increases

112、,both people,and the FSI brands that serve them,need to plan for multi-staged,and longer-lasting retirement.The 4%rule doesnt apply if a persons retirement spans 30-plus years and work lives now contemplate multiple career stages and extensive breaks between them.Wells Fargo recently launched The Lo

113、ngevity Project in partnership with the Stanford Centre on Longevity,with a mission to“Promote Transformation in Support of a Longer Life”and is adjusting its products and advice accordingly.38FSI 2FSI 2030/030/BIGGER BOLDER BRANDSBIGGER BOLDER BRANDSEvery Brand is a Health Brand-ImplicationsPlan fo

114、r a New Horizon of WellbeingTR E ND 0 223companies using a broader range of metricsfrom social engagement with the brand to successful referrals of other users to the variety of services usedto determine what exactly a good customer means to them.In addition,financial service providers could use mob

115、ile data and monitor social media behavior to assess customers creditworthinessuseful for consumers who find themselves without a credit score.By 2030,it may be standard practice for brands and governments alike to rate their consumers and citizens across a range of factors,determining whether they

116、allow access to exclusive services or even public services.Over the next decade,we expect that personal reputations will again become prized assets,with ratings from government,businesses or peers acting as a powerful mechanism of behavioral incentivization.An increasing number of companies already

117、review,and rate customers based on their behavior.We expect this trend to grow over the next decade.In the FSI category,it is increasingly likely that privileges,such as a premium customer service or promotions and discounts,will be extended to good users,while those who fail to play by the rules wi

118、ll risk restrictions or,worse still,being excluded from services entirely.FSI brands could use incentives to encourage consumers to agree to being rated or reviewed.For now,customer ratings remain narrowly defined by commercial transactions and good behavior but over the next ten years,we foresee FS

119、I 2030/BIGGER BOLDER BRANDS5-star CitizensTR E ND 0 324Bye Bye FICODespite some recent efforts,credit rating systems such as FICO havent changed much since the 70s,meaning that too many bad loans are being made,and potential good borrowers are rejected.FSI brands may consider using AI and more sophi

120、sticated models to identify and rate customers.Underwrite.ai claims to reduce defaults by 25-50%by creating a superior algorithm thatutilizes AI and modern computer processing.39Ratings to fuel Peer-to-Peer LendingTo capitalize on the rapid growth of peer-to-peer lending,FSI brands should look to fa

121、cilitate transactions between tiers of customers based on their knowledge and ratings of these individuals.Lending Club,Americas largest lending marketplace,has helped more than 3 million members since it was founded in 2007.It recently merged with Radius bank to launch the U.S.first publicly traded

122、 Neobank.40FSI 2030/BIGGER BOLDER BRANDS5-star Citizens-ImplicationsInnovate Customer RankingTR E ND 0 325vFORCE 04The Human DividendIn the 2010s,we focused on integrating digital technologies into the everyday aspects of our lives and of business operations.In the 2020s,attention will shift towards

123、 those traits and capabilities that make us human,leading to a renewed celebration of what makes us unique.This chapter will discuss three trends:What Robots Cant DoObjective-free PlayEmotion Trumps ObjectivityAs technologies become ever more ubiquitous and complex,time offline will gain appeal and

124、the need for humanized brand strategies will be paramount.For FSI brands,this means authentic and human customer service should be at the center of premium brand propositions by 2030.And Emotional Intelligence(EQ)will remain crucial in a future where tech interactions dominate.For instance,insurance

125、 provider Zurich climbed 176 places in the UK Customer Satisfaction Index in 2019,partly due to its strategic use of EQ.It revamped its complaints handling processes to incorporate Close-the-Loop calls,and launched SignLive,a service enabling customers with impaired hearing to contact the company us

126、ing a video interpreter.42Faced with the threat of automation,by 2030 there will be an even greater premium on human skills such as creativity and compassionand the brands that can embody these traits.At the same time,AI-driven productivity will liberate many workers from repetitive tasks,allowing t

127、hem to pursue more fulfilling work and find a better work-life balance.A heavily automated future may be considered a threat to workers,but by the end of the decade it also promises to relieve at least some of the(perceived)time pressures in consumers lives by removing monotonous tasks,potentially e

128、nabling access to more leisure time and fulfilling work.Already today,four out of ten consumers would consider using AI and robotics to perform household tasks unsupervised,and around three in ten would consider allowing these technologies to care for a child unsupervised.41FSI 2030/THE HUMAN DIVIDE

129、NDWhat Robots Cant Do TR E ND 0 127Face-to-Face ExperientialBanks should view their physical branches as opportunities to provide experiences with customers beyond merely transactional.From highly empathetic financial coaches to multi-sensorial experiences,this can be unique differentiator for those

130、 that get it right.From Financial Advisor to Life CoachAs AI-driven robo-investing increases,the role of financial advisors will evolve from counsellor to coach.Financial Advisory firm Edelman Financial Engines offers a broad suite of career planning services to help clients earn more and optimize t

131、heir savings and wealth growth.43 Video Customer ServiceFinancial services companies should take inspiration from the luxury brands offering video-concierge services and consider adding video to their customer service touch points.TurboTax has blazed the trail in this space with its live CPA service

132、.44FSI 2030/THE HUMAN DIVIDENDWhat Robots Cant Do-ImplicationsHumans Are the Key to White Glove ServiceTR E ND 0 128However,in response to higher rates of burnout and stress,a growing consumer movement against the culture of constant optimization will emerge,with an increased desire for objective-fr

133、ee activities.FSI brands will attempt to capitalize on the popularity of unproductive leisure pursuits by providing entertainment and relaxing environments for customers.By 2030,consumers will strive to maintain a balance between optimized and objective-free leisure pursuits.With advancing technolog

134、ical tools such as artificial intelligence assistants,consumers will also increasingly trust brands and platforms to offer personalized leisure suggestions,or even to make decisions on their behalf on how to spend their downtime.While many consumers will still want this leisure to be pleasure-rich o

135、r escapist,they will also look increasingly for the opportunity to acquire new skills,undertake self-improvement activities(such as health and fitness)and try new experiences.Our research finds that 70%of people agree that the COVID-19 crisis has increased their interest in the good life/more sustai

136、nable pastimes,such as gardening,upcycling and baking.45At the same time,however,the prospect of an economic recession also drove many consumers to use their leisure time to re-or up-skill.About one-third of people globally agreed that,during this time,their personal use of technology enabled them t

137、o learn new skills and knowledge.FSI brands have already played a key role here with banks,such as Virgin Money and Capital One,transforming some of their branches to offer personal finance courses to customers in a relaxed setting,with dedicated advisors on hand.46 FSI 2030/THE HUMAN DIVIDENDObject

138、ive-free Play TR E ND 0 229Gamification of Saving&InvestingThe increased gamification of financial services will become more mainstream,with Robinhood and Acorns-type services tailored for the digital-native generation via a primary focus on UX and gamification.FSI firms need to explore and test new

139、 ways to make saving money(and investing it)more fun and game-like.Multi-national bank Standard Chartered launched a mobile game for customers to win surprise cashback for transactions made with its credit cards.Twist&Win was integrated into the banks mobile app,encouraging credit card use with the

140、possibility of a cash payout.47Telematics Make Auto Insurance FunOver the past decade,auto insurers have been slowly rolling out Usage-Based Insurance(UBI)through telematics(mobile apps that track driving behaviors with the potential to provide better pricing to good drivers).Firms should embrace th

141、e game-like aspect of this,encouraging drivers to win with safer driving habits.The concept can be extended to other types of property insurance:homes;boats;and motorcycles.USAA,the Texas-based insurance,banking,and investment brand,partnered with eSports organization Envy Gaming to add gamification

142、 elements to its push into telematics and UBI.48Bank Branches as Relaxing OasisAs online banking becomes more popular,it begs the question:why do we need branches?Financial Services institutions of all types should think about how this can extend and enhance the total customer experience.Innovative

143、firms like Capital One Bank have turned many of their branches into cafes,with free wi-fi,cozy seating,Peets Coffee,and the opportunity to talk with bank representatives(no appointments needed).49FSI 2030/THE HUMAN DIVIDENDObjective-free Play-ImplicationsInject Entertainment in the Financial Experie

144、nceTR E ND 0 230For FSI businesses,this shift towards using emotional intelligence over objectivity to discern truth necessitates a robust brand purposesome relevant emotional truth that consumers feel speaks to them.And working closely with social media platforms will be paramount in terms of manag

145、ing any reputational damage caused by deepfakes,while embracing technology that enables them to identify and target real people online.In 2030,verifiable truth may be hard to come by.The spread of fake news,conspiracy theories and entrenched tribalism means that public debate is frequently character

146、ized by an endless loop of claim and counterclaim,and a lack of consensus on any given topic.Globally,55%of consumers agree that they have trouble sifting fact from fiction in the digital world.50Faced with this growing complexity,modern day consumers have come to rely more on emotional truths to ma

147、ke sense of new information and the world at large.They believe,and choose to believe,evidence that aligns with their own values and views.Because algorithms personalize an individuals online experience,consumers continue to encounter only information and ideas that conform to,and reinforce,their be

148、liefs.This presents a real problem for brands in the battle for consumer attention and custom.They will need to constantly find innovative ways of getting in front of,and engaging,new audiences and potential customers.FSI 2030/THE HUMAN DIVIDENDEmotions Trumps Objectivity TR E ND 0 331Hype-based Inv

149、estingDuring 2020,hype-based investing dominated the financial news cycle(meme stocks,crypto,NFTs).As the debate around these new trading categories continues,FSI brands must advise and guide their customers to come out on the right side of things.In May 2021,VanEck launched a new ETF,Vectors Social

150、 Sentiment,(ticker:BUZZ)tracking the 75 stocks that are attracting the most social media hype.51Celebrity-endorsed FSI Go MainstreamFinance and investing are increasingly becoming part of culture,with celebrities entering the space to launch products such as a Special Purpose Acquisition Company(SPA

151、C).FSI brands could look to financially-savvy celebrity endorsers to connect with a younger cohort of consumers.In April 2020,South Koreas KB Kookmin Bank launched a series of videos featuring members of the K-pop band BTS,to help make messaging more engaging for young consumers.52Deepfake Protectio

152、nFinancial services is quickly becoming the number one target for deepfake fraudsters,be that ghost fraud,new account fraud,synthetic identify fraud or annuity/pension/life Insurance fraud.FSI brands must double down on security and constantly communicate to,and educate,their customers on fraud dete

153、ction.Through its product Genuine Prescence Insurance,iProov offers financial service companies a way to authenticate customers online using biometric technology.53FSI 2030/THE HUMAN DIVIDENDEmotions Trumps Objectivity-Implications Embrace&Protect the CultureTR E ND 0 332vImplications RecapIn this r

154、eport,we explored the four major forces informing the evolution of consumer habits and expectations over the next decade and discussed the twelve trends emanating from those forces,as outlined in our study The Age of Inclusive Intelligence.Seeking to determine how financial services and insurance co

155、mpanies can-or in some cases have already started to evolve their offerings and business models to keep and gain market share throughout the unfolding tensions at play,we mapped sector-specific implications that we foresee these trends may set in motion.Here is an overview of the implications and op

156、portunities the FSI sector is expected having to navigate on its path to 2030.TREND 02Objective-free playInject entertainment in the financial experience:Gamification of saving&investingTelematics make auto insurance funBank branches as relaxing oasisTREND 01Acclimatize nowInvest in environmental su

157、stainability:Sustainability expectations are here to stayDont penalize the climate-disadvantagedEco-responsible banking&financeTREND 02A new data paradigmData-based decisioning:Usage-based products increaseThe holistic robo-advisorOpen banking may garner consumer-skepticismTREND 01Beyond humanSaving

158、s&plans for the enhanced human:Long tail retirementBio-matic life insuranceBio-lendingTREND 03Kaleido-identityInnovate for a community-driven market:Make decisions beyond demographicsCatering to new segment tribesTo pick a side of be neutral?TREND 02Virtual sets the standardFSI goes personal through

159、 virtual:Advanced virtual consultationsEsports sponsorshipsTREND 03Tech togethernessInvestor togetherness:Peer-to-peer goes mainstream:Investing as a social connectionTREND 02Every brand is a health brandPlan for a new horizon of wellbeing:Health=wealthMulti-phased retirementTREND 01Rise of the tita

160、n brandsFinTech raises the bar of customer experience:Big tech moves into financeApp=serviceDeFi vs.the worldTREND 035-star citizenInnovate customer ranking:Bye bye FICORatings to fuel peer-to-peer lendingTREND 01What robots cant doHumans are key to white glove service:From financial advisor to life

161、 coachVideo customer serviceFace-to-face experientialTREND 03Emotion trumps objectivityEmbrace&protect the culture:Hype-based investingCelebrity-endorsed FSI goes mainstreamDeepfake protectionFORCE 04The Human DividendFORCE 01Universal ActivismFORCE 02SyntheticSocietyFORCE 03Bigger,Bolder BrandsSour

162、ces1.U.S.Inflation Remained High in August(Wall Street Journal)2.5 Ways Banks Can Help Consumers Cope With Inflation(The Financial Brand)3.Decentralized Finance:Definition(Investopedia)4.Are you prepared for tax impact of the$68 trillion great wealth transfer?(CNBC)5.Cashless society draws closer wi

163、th only one in six payments now in cash(The Guardian)6.Dentsu ad spend report predicts continued growth through 2022 despite global economic turbulence(Dentsu)7.The Age of Inclusive Intelligence:Universal Activism(dentsu)8.The Age of Inclusive Intelligence:Universal Activism(dentsu)9.Deutsche Bank l

164、aunches green deposits for its corporate clients(Finextra)10.ARC Limited hosts regional meeting to address role of insurance in fighting climate change impacts(ARC)11.Climate impact investing app raises EUR1.4m(Finextra)12.The Age of Inclusive Intelligence:Universal Activism(dentsu)13.USD 78.9 Bn Gl

165、obal Usage-Based Insurance(UBI)Market to Grow at a CAGR of 26.9%(Vantage Market Research)14.State Farm and Ford team up to introduce usage-based insurance to new vehicle owners(State Farm)15.Truist launches AI-enhanced virtual assistant(Finextra)16.The Age of Inclusive Intelligence:Universal Activis

166、m(dentsu)17.HSBC Offers Gender-Neutral Banking in Inclusivity Bid(Bloomberg)18.John Hancock Vitality:rewarding you for your everyday healthy activities(John Hancock)19.Like it or not,your future as an activist brand has already begun(dentsu)20.The Age of Inclusive Intelligence:Synthetic Society(dent

167、su)21.The Age of Inclusive Intelligence:Synthetic Society(dentsu)22.Bank of America launches digital retirement program for employees of corporate clients(Charlotte Business Journal)23.The use of innovative payment mechanisms for gene therapies in Europe and the USA(Future Medicine)24.The Age of Inc

168、lusive Intelligence:Synthetic Society(dentsu)25.JP Morgan is first leading bank to launch in the metaverse(FinTech)26.League of Legends agrees multi-territory partnership with Santander(SportsPro Media)27.Peer to peer lending market outlook-2027(Allied Market Research)28.Lending platform auxmoney se

169、cures 500m from Citigroup and Natixis(Retail Banker International)29.Meme stocks are reshaping the trading industry(Saxo)30.The Age of Inclusive Intelligence:Bigger,Bolder Brands(dentsu)31.The Age of Inclusive Intelligence:Bigger,Bolder Brands(dentsu)32.Is Big Tech the Future of Banking?(MX Technolo

170、gies)33.Square launches checking and savings accounts for small businesses(The Verge)Sources(cont.)34.Square to acquire Afterpay for$29bn as buy now,pay later booms(Financial Times)35.Why TVL Matters in DeFi?(101 Blockchains)36.The Age of Inclusive Intelligence:Bigger,Bolder Brands(dentsu)37.Precisi

171、on Medicare(Health IQ)38.Wells Fargo Sponsors Panel Discussion on“Navigating Uncertainty:The 30+Year Retirement”(Bloomberg)39.underwrite.ai40.What Is A Neobank?(Forbes)41.The Age of Inclusive Intelligence:The Human Dividend(dentsu)42.The Age of Inclusive Intelligence:The Human Dividend(dentsu)43.Ede

172、lman Financial Engines Launches New Workplace Financial Wellness Platform(Business Wire)44.Lets find the right tax solution for you(Turbo Tax)45.The Age of Inclusive Intelligence:The Human Dividend(dentsu)46.The Age of Inclusive Intelligence:The Human Dividend(dentsu)47.Gamification in banking(Inoxo

173、ft)48.Envy Gaming partners with USAA in gamification collaboration(InsurTech)49.Heres How Capital One Combines Coffee with Banking to Cater to Millennials(Future Branches)50.The Age of Inclusive Intelligence:The Human Dividend(dentsu)51.VanEck launches social sentiment US equity ETF(ETF Strategy)52.

174、KB Kookmin Bank Ad Featuring BTS Becomes Big Hit in Indonesia(Business Korea)53.Right person,Real Person,Right Now(iProov)About UsDentsu is the network designed for whats next,helping clients predict and plan for disruptive future opportunities and create new paths to growth in the sustainable econo

175、my.Taking a people-centered approach to business transformation,we use insights to connect brand,content,commerce and experience,underpinned by modern creativity.As part of Dentsu Group Inc.(Tokyo:4324;ISIN:JP3551520004),we are headquartered in in Tokyo,Japan and our 65,000-strong employee-base of d

176、edicated professionals work across four regions(Japan,Americas,EMEA and APAC).Dentsu combines Japanese innovation with a diverse,global perspective to drive client growth and to shape society.Dentsu Group Inc.websites: and Is your brand exploring how to innovate its marketing approach and differentiate from industry competitors?Get in touch with us now.Dan Holland EVP,Solutions Development,dentsuMatt Regan Vice President,Customer Strategy,Insurance and Wealth Management,MerkleJack Boitani Director,Content Development,dentsuThanks to our Contributors:Contact Us