Connect with us
Editorial & Advertiser disclosureOur website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.

Top Stories

Big data revolution driving $13.4 billion Healthtech M&A deals says HampletonPartners

Published

on

Big data revolution driving $13.4 billion HealthtechM&A deals says HampletonPartners
  • Amazon, Apple, Google and IBM healthtech investments are forcing incumbents to make defensive M&A deals
  • Record private equity investment in healthtech

The latest Healthtech M&A Market Report from international technology mergers and acquisitions advisors, Hampleton Partners, reveals how Big Data is fast becoming the common currency that lies at the heart of high-value business models in the healthtech sector.

In addition to booming strategic investment in the sector, the first half of 2018 saw record private equity investment and five multi-billion-dollar deals, pushing the total disclosed transaction value to $13.4 billion with a 30-month trailing disclosed EV\EBITDA ratio in excess of 16x.

Download the full Hampleton Partners Healthtech M&A Market Report: https://hampletonpartners.com/healthtech-report-2018

Total Healthtech MA Transaction Volume 2018 Hampleton Partners

Total Healthtech MA Transaction Volume 2018 Hampleton Partners

The data revolution in healthtech

Billions of individual electronic health records (EHR) are replacing paper files and the data from decades of medical research and clinical trials need to be stored. Data management and analytics platforms and medical collaboration software are in demand to take advantage of the huge potential the data revolution offers to advance medicine.

Jonathan Simnett, director and healthtech sector principal, Hampleton Partners, said:

“The data revolution is helping transform healthcare and is offering individuals, as well as clinicians, the opportunity to track, manage and improve health states in real-time by using healthtech wearables and personalised apps.

“These trillions of health and well-being data points all need monitoring and analysing to provide the effective diagnostics that practitioners need to improve outcomes. Hampleton expects companies expert in big data analytics, and those using new technologies such as blockchain and artificial intelligence, which increase the effectiveness of healthcare services, are going to be in demand going forward.”

Tech giants’ healthtech ambitions

But the healthcare market is not just going through a technology inflection point. There are profound disruptive influences at play, as companies from outside of the traditional healthcare space bring new expertise and business models to the sector, competing with already highly acquisitive incumbents such as Philips, IMSHealth, Allscripts, Ability, Roper and Harris.

Amazon’s purchase of online pharmacy PillPack, for a reported value of just under $1.0 billion, underscores the company’s ambitions in healthcare after its joint venture announcement for employee healthcare services provision with Berkshire Hathaway and JPMorgan.  The potential for Amazon to combine its eCommerce, video platform, massive outsourced web services expertise and customer reach into a one-stop shop for consumer verticals like healthcare, could trigger further defensive acquisitions in the months and years to come.

Total Number of Healthtech MA Deals 2013 - 2018 Hampleton Parters

Total Number of Healthtech MA Deals 2013 – 2018 Hampleton Parters

Private equity invests billions in healthtech

The sector’s largest deal in the first half year was the $4.9 billion cash acquisition of Cotiviti Holdings, a healthcare analytics and payments business, by Verscend Technologies, a portfolio company of Veritas Capital. The acquisition, valued at 19.7x EBITDA and at a 136 percent premium to Cotiviti’s IPO common stock price, demonstrated the heightened willingness of private equity investors to chase big-ticket deals in healthcare.

The healthtech sector’s second largest transaction was the $2.1 billion offer from Platinum Equity for Johnson & Johnson’s struggling LifeScan unit, a manufacturer of blood glucose monitoring systems. In third place was the $1.9 billion acquisition of Alphabet-backed Flatiron Health, an electronic health record software specialist with a focus on oncology, by Swiss drugmaker Roche Holding, adding to its existing stake, for a total value of $2.1 billion.

The two other private equity deals that made it into the top ten biggest transactions were the $1.05 billion cash acquisition of General Electric’s health-care technology unit by Veritas Capital and Vista Equity Partners’ investment in software company Allocate.

The future of healthtech M&A

Jonathan Simnett, continued:

“Ageing populations, increasing patient demands and the rise of lifestyle diseases, coupled with pressure on service delivery budgets are forcing public and private healthcare providers faced with unsustainable care models to innovate to improve the quality of delivery and lower costs.

“This is prompting tech giants, including Amazon, Apple, Google and IBM to target the healthcare sector in competition with private equity, but they’ll all face strong competition for deals from incumbent healthtech providers, many of whom are under growing pressure to maintain their top-line organic growth and sharpen their market focus. This is all good news for healthtech companies considering an exit in coming months.”

Top Stories

Digital collaboration: Shaping the Future of Finance

Published

on

Digital collaboration: Shaping the Future of Finance 1

By Ryan Lester, Senior Director of Customer Experience Technologies at LogMeIn

With heightened economic uncertainty and increased customer expectation becoming the norm in the banking industry, it is understandable that the sector is struggling to keep afloat. Due to its precarious nature, banking institutions are trying their best to ensure they remain relevant in the competitive landscape and guarantee that their customers continue to be a priority.

When it comes to the first half of this year, the pandemic has shown how easy it is for industries to fail. Customers and companies alike had to get used to the new normal, as physical locations started to close. The banking industry felt this first hand, as banks were made to restructure how their business ran, with restricted opening hours and a wider push to motivate people to use online banking.

While some had already embraced digital options prior to the pandemic, this proved to be a stark contrast to the elderly population, who frequently visited branches to access their finances. Moving forward, banks have to adopt new methods to ensure customers get the most out of our their accounts, without their experience suffering.

Heightened Customer Expectations

When the pandemic reached its peak, people were encouraged to use online banking, as telephone contact was under strain with long waiting times and pressure mounting on contact centre agents. According to Fidelity National Information Services (FIS), which works with 50 of the world’s largest banks, there was a 200% jump in new mobile banking registrations in early April, while mobile banking traffic rose 85%.

With branches remaining closed, customers were continuously being urged to limit the amount of calls they made to the most urgent cases and consider whether they could solve their answers through mobile online banking or checking the company website. Although already being adopted in pockets of the industry, this was a real catalyst that spurred banks to up their game on digital channels and with self-service tools.

Banks are challenged with precariously balancing customer needs with the cost of personalised support. With the demographic of customers changing over the last few years, customers are becoming increasingly younger and more comfortable with technology. Influenced by the “Amazon Effect”, their expectations have raised to an all-time high, placing record strain on the sector

Customer experience isn’t just about support anymore, it’s about serving your customer at every point in the journey. Companies have an opportunity to elevate the experience they provide by moving beyond one-and-done interactions to create continuous engagements with their customers. It is starting to become a primary competitive differentiator in the market and one that doesn’t have a lot of variation. Deploying AI chatbot technology will be able to strategically help banks improve customer experience and raise the level of support that agents provide.

Digital collaboration: Working around the Clock

The benefits of adopting digital channels and self-service tools are second to none. By implementing chatbots, fuelled by conversational AI, banks will be able to help serve a wide range of customer queries and ensure they are protected from fraud and scams.

Ryan Lester

Ryan Lester

Conversational AI is exactly what it sounds like: a computer programme that engages in a conversation with a human. When it comes to service delivery, conversational AI can be deployed across multiple channels to engage with customers in ways that effectively address evolving customer needs. At a time defined by COVID-19, self-service tools such a conversational chatbots can work around the clock to solve customer queries in a concise and timely way. Of course, self-service tools won’t completely replace human agents in the banking industry, but they will help companies re-distribute customer traffic and workflows in ways that enhance customer experience. Self-service tools fuelled by conversational AI can also improve employee experience because service employees can handle fewer, but higher-level service tasks that chatbots might escalate to them.

Adopting new tools to help facilitate consistent and concise answers and help maintain customer experience is on the forefront of many industry minds. Banks such as the Natwest Group have seen this first-hand and are testament to the benefits that a good digital experience can provide. Simon Johnson, Capability Consultant, Digital at NatWest Group highlights NatWest’s use of digital tools during lockdown, “Over the last few months, we’ve learnt how to use digital tools to help our employees remotely. From a banking perspective, there have been a lot of changes including base rates, waive fees and the best ways of contacting our vulnerable customers, ensuring we keep them protected from frauds and scams.

“By introducing our Bold360 chatbot interface, Ella, we’ve been able to get relevant information out quickly, apply the best practice and ensure that our customer journeys are being developed correctly. Due to the volume of questions, some of our customers were finding themselves waiting longer than usual. So digital channels become essential to helping reduce the wait time. Using Bold360, we were able to mitigate issues and answer questions in a more timely way through our chatbot.

“Moving forward, as we open more digital services, we are analysing our data to see if customer will return back to their usual way of banking, now that they’ve seen what a good digital experience can provide. Either way, with Ella, we are ready.”

Chatbots and Humans: The Best Option for Customer Service

Over the last year, banking institutions have recognised the power that digital collaboration can have to their success. Delivering exceptional customer service and support is key for any business wanting to stay competitive in today’s market and banks are especially challenged with precariously balancing customer needs with the cost of personalised support. Leveraging the right technology, such as AI-powered chatbots, will enable the banking industry to provide better support and a more robust customer experience in the long term. Other institutions must follow suit, or risk becoming obsolete.

Continue Reading

Top Stories

A sleeping digital giant wakes? 4 key trends accelerating payments transformation in the US

Published

on

A sleeping digital giant wakes? 4 key trends accelerating payments transformation in the US 2

By Lauren Jones, International Payments Ambassador, Icon Solutions

The US payments industry is undoubtedly ripe for change. Before the unprecedented shock of COVID-19, digitization and payments transformation initiatives had been organic, piecemeal and predominately the preserve of the largest banks.

Now, increasing pressure means that financial institutions of all sizes are working to define a digital strategy to unlock new opportunities, drive business value, and stay competitive. But beyond the immediate impact of COVID, what underlying trends are accelerating digitization in the US?

  1. Real-time payments – the stimulus for change  

Real-time payments have been met with a degree of caution by US financial institutions. Risking traditional profit generators in return for potential revenues down the line is a gamble many have not been willing to take. But immediate payments are coming to the US whether banks like it or not.

Major payments infrastructure providers, including NACHA and The Clearing House (TCH), have moved to encourage immediate payment adoption in recent years. But the Fed, frustrated with a slow rate of progress, has announced that it is pressing ahead with the implementation of its FedNow system (despite significant industry objection). Although the Fed’s true intentions are open to interpretation and this may just be a play to accelerate private initiatives, it is a clear signal that they mean business.

This means holdouts risk their own ‘Kodak’ moment if they miss the huge opportunities in front of them by fixating on traditional revenue streams. Banks are in a position to support innovation across entire industries such as healthcare, which could be released from the constraints of paper-based bureaucracy and slow, expensive transactions.

Another opportunity that can be unlocked via instant payments is ISO 20022 (used in the TCH RTP system). It is the future of payments messaging standards and can greatly enhance various payments processes through increased data-carrying capabilities. More importantly given the current climate, citizens reliant on federal or state support can benefit from RTPs combined with additional data to immediately access emergency funds.

  1. The kids are growing up

The US is getting older. Consumers who were 10 when the iPhone first launched are now 23. This means we are seeing a ramp-up of digitally native Gen Z consumers (roughly those born between 1995 and 2010) accessing banking services.

Demographics are an inexact science and not perfect predictors (there are technophobe college students and 100-year-old Instagram influencers), but we can detect noticeable trends.

Younger customers don’t usually choose a bank because there is an ATM in their neighbourhood, a slightly better interest rate or an advert in the newspaper. Rather, a strong digital presence, personalised tools, rewards and experiences, and the trusted recommendations of friends and family, will have a more significant impact on customer acquisition.

Banks must look at the effect this will have on their longer-term digitalization strategy and be able to segment what this emerging customer base might want and how they will interact in years to come.

  1. Checkmate? Evolving corporate requirements

    Lauren Jones

    Lauren Jones

Corporate treasurers are people and their experience of seamless, immediate payments in their personal lives shapes expectations in the workplace. Although check usage for business-to-business (B2B) transactions is still the norm in the US and barriers remain, corporates are increasingly demanding the ability to transact in a real-time, omnichannel environment, 24×7.

The benefits are clear. Corporate treasurers stand to enjoy enhanced liquidity management and transparency, greater control over payments and enhanced data for reconciliation purposes. And for consumers, alternative digital payment options such as buy now pay later promote choice and flexibility.

  1. Increasing competition

A significant consequence of emerging consumer and business demand for digital offerings is the increase in competition from fintechs, technology giants and other third-parties. Traditionally, incumbent banks have enjoyed the advantage of consumer trust to offset more limited innovation. But as consumers become more comfortable entrusting their financial transactions to non-banks, banks must differentiate and digitize to remain competitive.

Data is where the technology giants excel, and their ability to personalise experiences and emotionally connect with their users is unprecedented. Banks need to learn from the positive aspects of this model to better understand their users and deliver meaningful, useful products and services.

For data to become the cornerstone of a banks’ customer relationship and take services to the next level, breaking the channel silos and extracting value from a comprehensive dataset will be decisive. But with only 18% of banks reporting that they are in the process of shifting from a transactional revenue model to a data-driven revenue model, this work has some way to go.

Taking customer propositions to the next level

Customers now expect services that work for them, not their banks. All banks, no matter the footprint, need to move quickly to offer a broad digital service platform that adds value to both the customer and the bank.

By defining a robust payments transformation strategy, banks of all sizes can remain fiercely competitive by rapidly lowering costs, unlocking revenues and promoting innovation

Continue Reading

Top Stories

Return to Work Doesn’t Mean Business as Usual When it Comes to Travel and Expense

Published

on

Return to Work Doesn’t Mean Business as Usual When it Comes to Travel and Expense 3

By Rob Harrison, MD UK & Ireland, SAP Concur

The last few months have been an exercise in adaptability for businesses across the UK. With the sudden mandate to work from home, company processes that were ingrained in employees’ day-to-day routines were either put on hold or turned upside down. The new office normal now includes virtual meetings, conversing through instant messaging instead of in the hallway, and the redefining of “business casual” attire.

Many of the processes that have undergone changes fall into the category of travel and expense. With most business travel on hold and the nature of expenses changing, finance managers have had to adjust policies and practices to accommodate the new world of work. Recent SAP Concur research found that 72% of businesses have seen changes in the levels and types of expenses submitted, but only 24% have changed their policies to support this. Examples of travel and expense related changes that were made at the beginning of work from home mandates include:

  • A halt to business travel and its associated expenses.
  • Temporarily ending expensed meals for business lunches, dinners, or in-office meetings.
  • Increase in office expenses like monitors and chairs as employees furnish their home offices.
  • New expenses to consider like Internet and cell phone bills for employees who must work from home.

Now, as companies begin thinking about return to work plans, finance managers are discovering it’s not simply business as usual again. SAP Concur research found that many expect finance will return to normal quicker than general workplace practices, but vast majority see the process taking up to 12 months. New policies and processes need to be put in place to accommodate travel restrictions and changes in expenses. While finance managers need to stay flexible as the business environment continues to evolve, spend control and compliance should still be a high priority.

Here are a few questions that can help finance managers prepare for return to work while keeping control and compliance top of mind:

  • What will travel look like for the company? Finance managers must work with travel and HR counterparts to determine the need for employee travel, if at all, and how to keep employees safe. At SAP Concur, we surveyed 500 UK business travellers and found that health and safety is now seen as more than twice as important than their business goals being met on trips (34% versus 16%. Clear guidelines should be developed, even if they are temporary or evolving, so it’s clear who can travel, when they can travel, and how they can travel. Duty of care plans should also be re-evaluated and businesses should ensure they know at all times where employees are traveling for business and how they can communicate with them in the event of an emergency.
  • Who needs to approve travel and expenses? While it may be temporary, businesses may have to implement a more stringent approval policy for travel and other expenses. Due to health concerns related to travel and the need to conserve cash flow, business leaders like CFOs may want to have final approval over all travel and expenses until the situation stabilises. To help ensure new approval processes don’t cause delays and inefficiencies, finance managers should implement an automated solution that streamlines the process and allows business leaders to review and approve travel requests, expenses, and invoices right from their phones. According to SAP Concur research, 11% of UK businesses implemented some automation of financial processes in response to COVID-19. This is definitely set to increase post-pandemic.
  • Rob Harrison

    Rob Harrison

    What types of expenses are within policy? Prior to social distancing, employees may have been allowed to take clients out to dinner. In-person team meetings held during the lunch hour, may have included expensed lunches. As employees return to work, finance managers need to determine if these activities and expenses will be allowed again. Clear guidelines must be put in place and expense policies need to be updated to reflect any changes.

  • What happens to home office items that were purchased? While new office equipment may have been purchased for employees’ home offices, they remain the business’s property and what to do with them as employees return to work needs to be determined. Perhaps employees will continue to work from home a few days a week and need to keep the equipment to ensure productivity. However, if a full return to work is expected, finance managers have options that can maximise their asset investment and possibly save the company money, like replacing old office equipment with the new purchases, reselling to a used office furniture company, or donating to a non-profit.
  • How can cost control be ensured? For many businesses, cash flow will be tight for the foreseeable future. Spend needs to be managed to help ensure recovery and stability. An important aspect of controlling costs is having full visibility of expenses throughout the company. Implementing an automated spend management solution that integrates expense and invoice management brings together a business’s spend, giving finance managers an understanding of where they can save, where to renegotiate, and where to redirect budgets based on plans and priorities.

Once finance managers have asked themselves the questions above and determined how they want to approach travel and expense procedures, it’s vital they create guidelines and communicate clearly to employees. Compliance can only be ensured if employees have a clear understanding of what has and has not changed with travel and expense policies and what’s expected as they return to work.

Continue Reading

Call For Entries

Global Banking and Finance Review Awards Nominations 2020
2020 Global Banking & Finance Awards now open. Click Here

Latest Articles

Digital collaboration: Shaping the Future of Finance 4 Digital collaboration: Shaping the Future of Finance 5
Top Stories21 hours ago

Digital collaboration: Shaping the Future of Finance

By Ryan Lester, Senior Director of Customer Experience Technologies at LogMeIn With heightened economic uncertainty and increased customer expectation becoming...

The 2020 Outbound Email Data Breach Report Finds Growing Email Volumes and Stressed Employees are Causing Rising Breach Risk    6 The 2020 Outbound Email Data Breach Report Finds Growing Email Volumes and Stressed Employees are Causing Rising Breach Risk    7
Business21 hours ago

The 2020 Outbound Email Data Breach Report Finds Growing Email Volumes and Stressed Employees are Causing Rising Breach Risk   

Research by Egress reveals organisations suffer outbound email data breaches approximately every 12 working hours  Egress, the leading provider of human layer data security solutions, today released their 2020 Outbound Email Data...

Regulating innovation: the biggest challenge in payments 8 Regulating innovation: the biggest challenge in payments 9
Finance22 hours ago

Regulating innovation: the biggest challenge in payments

By Fady Abdel-Nour, Global Head of M&A and Investments, PayU Over the course of the last six months, the payments...

Investors remain worried about COVID, but positive towards stamp duty holiday 10 Investors remain worried about COVID, but positive towards stamp duty holiday 11
Investing22 hours ago

Investors remain worried about COVID, but positive towards stamp duty holiday

By Jamie Johnson, CEO of FJP Investment The journey back to economic normality will be strenuous. COVID-19 has imbued many...

Creating a culture of cybersecurity in Financial Services 12 Creating a culture of cybersecurity in Financial Services 13
Technology22 hours ago

Creating a culture of cybersecurity in Financial Services

By Martin Landless, Vice President for Europe at LogRhythm As the financial services sector increasingly moves online and reaps the...

How the financial sector can keep newly acquired customers returning time and time again 14 How the financial sector can keep newly acquired customers returning time and time again 15
Finance22 hours ago

How the financial sector can keep newly acquired customers returning time and time again

By Dicken Doe from Foolproof, a Zensar company Covid-19 has changed the financial lives of millions; what worked for people...

Creating an engaging email marketing campaign that avoids the junk folder 16 Creating an engaging email marketing campaign that avoids the junk folder 17
Business22 hours ago

Creating an engaging email marketing campaign that avoids the junk folder

By David Wharram, CEO of Coast Digital With more than 280 billion emails sent every day, email marketing is a...

Cloud in Banking: An Opportunity That Can’t be Ignored 18 Cloud in Banking: An Opportunity That Can’t be Ignored 19
Banking23 hours ago

Cloud in Banking: An Opportunity That Can’t be Ignored

By David Rimmer, Research Associate at Leading Edge Forum Originally offered as a better way to build IT systems, cloud...

Increased contactless spending could be linked to higher fraud and payment disputes, warns global risk expert 21 Increased contactless spending could be linked to higher fraud and payment disputes, warns global risk expert 22
Finance23 hours ago

Increased contactless spending could be linked to higher fraud and payment disputes, warns global risk expert

The rapid adoption of contactless payments during COVID-19 may be contributing to multiple strands of fraud Monica Eaton-Cardone, COO and...

Pay and Go, why seamless checkout is essential for the customer experience 23 Pay and Go, why seamless checkout is essential for the customer experience 24
Finance23 hours ago

Pay and Go, why seamless checkout is essential for the customer experience

By Ralf Gladis, CEO, Computop Shopping for many is therapy…until they reach the queue for the checkout. It’s easier online...

Newsletters with Secrets & Analysis. Subscribe Now