Financial Services and Healthcare set to be most affected
Which traditional sectors do tech companies think will become most disrupted by emerging technologies within the next three to five years? We asked for the top three.
Tech companies tell us that the financial services sector is set for most disruption – 74% of respondents think emerging technologies will cause disruption in the next three to five years. Management teams in traditional banks need to embrace FinTech, which is booming, favoured by PE firms and featuring strongly in the Tech Track 100 league table of fastest-growing tech companies. The application of AI, forms of robotic process automation (RPA) and data analytics should all shake up customer service standards and product offerings. Disruption to financial services caused by emerging tech should be good news for the consumer and has the potential to be good news all round.
“After 30 years in the banking world, I knew that the best way to develop a bank which would deliver the latest technology to really benefit people was to build a new one - from scratch. Mobile is the foundation of our business, not an additional service within an existing, traditional service.”
Anne Boden, CEO, Starling Bank
The healthcare sector is the surprise second placer, with 52% of respondents expecting substantial disruption. We assume most of our respondents, by virtue of their tech focus, see disruption as a force for good – an opportunity to achieve positive change. Could emerging technologies save money for the NHS? In our view, very positively.
The retail and wholesale sector is also set for substantial disruption in the next three to five years, according to 43% of tech companies. Storm clouds have long been hanging over the high street, but emerging tech doesn’t necessarily destroy the retail experience. In fact, it can enhance it – whether combined with augmented or virtual reality, for example, to help shoppers make better choices in an enjoyable way. Disruption could also come from enhanced data analytics (to understand customer trends) and more efficient delivery systems.
Outlook #3: MediTech will help the healthcare sector improve health outcomes and efficiency
According to the Nuffield Trust, healthcare is at least a decade behind other industries. Yet there is strong appetite among patients for online services, and many use the internet for research and self-diagnosis. Increased access to smartphones, “wearables” that monitor health indicators, cloud technology and gene therapies provide a raft of opportunities for the NHS to reduce costs, personalise care, improve patient outcomes, and spend less time on admin. We are already seeing “mobile GP” services such as Babylon, while AI-powered remote diagnostic technologies are developing rapidly.