Connect with us

Top Stories

GLOBAL REPORT PREDICTS EDTECH SPEND TO REACH $252BN BY 2020

Published

on

GLOBAL REPORT PREDICTS EDTECH SPEND TO REACH $252BN BY 2020

EdTechXGlobal releases key market drivers in global EdTech review and highlights changing nature of the workforce

Leading education technology-focused conference, EdTechXGlobal has today released its forecast for the biggest trends set to impact the EdTech industry in 2016, from a report produced in partnership with IBIS Capital. Ahead of the annual summit in June, the report also demonstrates how the EdTech market has changed dramatically, with a growing realisation of the impact EdTech is having on the way skills are acquired and developed for the 21st Century workforce.

The report finds EdTech market acceleration will be hugely dictated by the global education expenditure market, as education becomes increasingly more expensive. In fact, the market is now over $5tn, 8x the size of the software market and 3x size of the media and entertainment industry, yet education is only 2% digitised.  With the market expanding rapidly, so too is the annual summit, which will this year take place over two-days in London, with the launch of an inaugural Asian event in November.

“We expect a long rising tide rather than an avalanche, and as such, we need to manage our expectations accordingly,” explained Benjamin Vedrenne-Cloquette, Co-Founder, EdTechXGlobal. “We estimate that the speed of digitisation in education will be up to five times slower than has been seen in other sectors, due primarily to the increased number of gate keepers involved in digital transition decisions, teachers, institutions, governing bodies, districts and policy makers amongst a few”.

Education technology is becoming a global phenomenon, and as distribution and platforms scale internationally, the market is projected to grow at 17.0% per annum, to $252bn by 2020. To date, the US has set the trend and pace of the EdTech market. Asia is now experiencing the world’s fastest growth in investment into the sector, and Europe has seen increases in M&A; however, this region remains a largely under-invested and fragmented market.

Mobile penetration, particularly smartphones, will be a game-changer towards delivering and supporting learning, and driving growth. The report notes that North America, Europe and the commonwealth states lead in internet and mobile penetration, while substantial growth is expected across emerging markets, with mobile being a catalyst for delivering and supporting learning. With 90% of the world’s population under 30 already being in emerging markets, education and vocational training in the area will be led by mobile first strategies.

Population growth will be a key challenge for the EdTech sector. By 2035, there are expected to be 2.7bn students worldwide, and in order to meet higher education demand under the current structure; two universities need to be built per day, over the next twenty years. As such, the report states that this is leading education providers to seek ways to capitalise on growth by expanding their brand to export markets so individuals can access internationally recognised qualifications.

With the recognition of online education qualifications long representing a challenge for the industry, the report indicates that MOOC job conversion rates are increasing, largely driven by demand from employers for skilled workers. Although monetisation still remains unclear, the report draws up solid examples of successes in this respect with Coursera, an educational technology company that offers MOOCs, sited as being set to reach $30m in revenues per year thanks to its steps to solve marginal cost and positive impacts at a massive scale.

The report predicts a global workforce crisis powered by extreme automation.  The ‘Fourth Industrial Revolution’ will see an increase in workforce automation to include not only highly repetitive low-skill jobs, but also highly routine medium-skill jobs. This will accelerate disparity between the supply and demand of candidates and force employees to learn new skills, both within the workplace and in educational establishments.

Benjamin continues, “in a rapidly evolving economy where skill sets continue to progress at an accelerated pace, digital models offer a way to capture these changes and offer new routes for re-skilling as well as addressing widespread labour shortages, 50% of current jobs won’t exist in 2025, and consequently, there will be a growing need to re-train the workforce in order to address current skill gaps and increase the use of continuous learning.”

The report’s findings will be discussed in detail at the summit on 15th-16th June, during which more than 800 delegates and over 150 speakers are expected to come together to engage in keynote speeches, fireside chats and panel discussions, to share knowledge and champion growth in the EdTech sector. Formally known as EdTech Europe, the London event has grown exponentially over the last three years, undergoing a branding overhaul in 2016 to reflect a burgeoning interest from international delegates.  Now, along with the newly launched EdTechXAsia event, EdTechXEurope will sit under the EdTechXGlobal umbrella of events, to provide a truly worldwide platform for global EdTech experts, investors and innovators.

To see the full report from EdTechXGlobal or to find out more about upcoming summits, visit www.edtechxeurope.com.

Top Stories

How CFO’s can Help Their Businesses Successfully Navigate The Financial Fallout From COVID-19

Published

on

How CFO’s can Help Their Businesses Successfully Navigate The Financial Fallout From COVID-19 1

By Mohamed Chaudry, Group CFO of FoodHub

2020 has been one of the toughest years in recent memory for business. There hasn’t been a sector left unaffected by COVID-19, whether negatively or positively. We’ve been in recession, out of recession, then teetering on the edge of the infamous double-dip. Which, at the time of writing, looks impossible to avoid. For CFOs, the financial rudder of any business, the trials have been significant. Many businesses have found themselves unprepared for the pandemic and left floundering in its wake, with the prospect of a potentially lengthy financial downturn to traverse. So, how can CFOs hope to navigate through the financial fallout from COVID-19, and successfully guide their businesses to the other side?

Strategies to Help CFOs Traverse the COVID-19 Recovery Period

The role of the CFO has evolved in recent years, moving from pure financial management to technical implementation, futureproofing, and strategic analysis and planning. And they are all integral to surviving a protracted recession. And the focus should be on five key areas.

Scenario planning vs Forecasting

Who could have seen the pandemic coming 18 months ago? Who would even have considered that the disruption caused by a virus would have such overwhelming worldwide consequences a year after it was first detected? It’s the rare business that will have put adequate protective measures in place. But now that we are all well aware of the damage COVID-19 has wreaked, it would be remiss to fail to plan for ongoing and upcoming eventualities.

Mohamed Chaudry

Mohamed Chaudry

Right now, CFOs should be scenario planning for the length and route the pandemic might take. Which industries are likely to recover first? And which countries will be first to come out of the recession?

CFOs need to be crisis planning. Developing strategies to preserve cash, streamline expenses, manage working capital and secure short-term funding. But stratagems also need to be put in place to defend against loss of critical talent (accounting for staff sickness), bolster IT developments, and manage risk.

“Wind Tunnelling” business strategy through each potential scenario will reveal the most robust tactics to carry your business through all potential developments and forecasts.

Bolster liquidity

Liquidity management practices vary from business to business. But at a time of crisis, monthly actions are no longer enough. Liquidity requires daily attention. Working cashflow needs to be generated for the coming months. To do this, CFOS should be:

  • Looking to secure short-term funding to ensure a cash buffer
  • And cashflow modelling with an aim of preserving current resources

Cost Cutting

The previous point feeds directly into this one. Cutting costs is always a necessary component of recession navigation. But there are ways of doing it without swingeing cuts. No matter how tight a ship you think you’re running, there is always room for operational improvement, from supply chain to asset optimisation. Bolstering productivity in your workforce, whether through new tech implementation or streamlining processes, can reduce lost hours. Non-core business units and overheads usually present an easy option for pain-free cost reduction. While negotiating better pricing and credit terms from suppliers can be an easy step to enhanced cashflow.

The important thing to remember is that cost cutting should never be a knee jerk reaction. And overly aggressive strategies can be detrimental. You still need to be investing more than rivals to ensure that post-recession, you’re able to put your foot back on the accelerator and be ahead of the competition.

M&A

Mergers and acquisitions are an inherent part of any recession. But 2020 has seen a significant fall in M&A activity. This will partly be due to potential buyers waiting to snatch a bargain. But if you’re in the market to increase your portfolio through the acquisition of competitors, look for those that are fundamentally sound, but are facing cashflow issues at reasonable valuations.

If cashflow has become a weighty concern for your business, merging can also be worth considering. Despite the loss of autonomy, mergers can present a wealth of opportunity, if they are handled correctly. And it’s better than facing full closure.

Creating scalable growth is the best way for businesses to weather any financial crisis. But in the meantime, battening down the hatches and taking adequate precautions is a sensible option for CFOs looking to steer their businesses through the COVID-19 fall out.

Continue Reading

Top Stories

Time for financial institutions to Take Back Control of market data costs

Published

on

Time for financial institutions to Take Back Control of market data costs 2

By Yann Bloch, Vice President of Product Management at NeoXam

Brexit may well be just around the corner, but it is market data spending that financial institutions are more interested in taking back control of right now. In fact, other than regulatory equivalence post the transition period, it is hard to think of a more prominent issue right now than the rising cost of market data. According to analysis at the end of last year by Burton Taylor, global spend on market data topped $30 billion in 2019. With costs showing very little sign in coming down, at least in the short to medium term, now has to be the time for market participants to better grasp of not only what their costs could be at the end of the month, but also the precise areas of business consuming the most data.

The problem has been, and still is, seeking out those month-on-month cost anomalies. For example, why is it that fixed income and FX derivatives costs have all of a sudden doubled compared to the previous month? The trouble is it is nigh on impossible to get accurate answers to questions like this because the vast majority of investment firms have no fullproof way of analysing how spending evolves over time. In certain cases, financial instructions can experience a 10%+ increase on their monthly market data vendor bills.

It is not hard to see why – as every small incremental cost mounts up fast. First there are the direct costs for one or more sets of data – which leads to billing getting far more complex. Sure, a market data vendor may be adding lots of different add-on services to help clients save money, but at the same time, they will also be adding on more costs. If this was not enough, there are also the indirect costs around data governance and regulatory compliance. New rules, such as the Fundamental Review of the Trading Book (FRTB), means that investment banks will have no choice but to consume a lot more data to be able to run models and back testing.

All this begs the question; how exactly can firms gain more control of their market data spending? A good place to start is trying to reduce waste. This involves firms making sure they do not request new sources of data from their vendors that they are not going to use. If data vendors charge for every single piece of data that the client requests, then the client needs to make sure they are going to act on this information. Then there is the recycling of the data. Say an investment fund needed a new piece of data instantly, and also needed that same piece of data at the end of the day. If the fund manager already has the data, they surely, they do not need to request it again? It is all about being smarter about reusing whatever data the fund manager has received previously. After all, different trading desks are all consuming data and requesting information through the data management team, but it is hard for the trader acting on the data to work out how much the data actually costs. This is why being able to allocate these costs to the different trading desks is key.

When all is said and done, the only way financial institutions can harbour any hopes of overcoming this longstanding data cost problem is by deriving more insights to ensure they a squeezing every last drop of value from their market data. Technological advancements mean that firms can now keep right on top of not just their data direct costs, like complex billing, but also the indirect costs around regulation. With so many other cost pressures across the business right now, it is time financial institutions take advantage of new technologies to finally address the issue of rising market data costs that has, frankly, plagued the industry for too long now.

Continue Reading

Top Stories

Cash was our past, contactless is our present, contextual payments are the future

Published

on

Cash was our past, contactless is our present, contextual payments are the future 3

By Jason Jeffreys, founder of FETCH

$6tn in the next five years, this is how much the world will spend through contactless payments, according to analyst firm Juniper Research. For many of us who have discovered and since relied heavily on contactless payments since its introduction in 2007, either through card, phone, or watch, or those of us who have taken a stroll down a covid-era high-street to see shop windows adorned with “card payment only” signs, this is hardly a surprise. Even the Church of England in 2018 equipped 16,000 religious sites with terminals to allow for contactless donations. So what is behind this rise? And what is next?

The switch from cash to contactless is a transformation of payments that is driven by four key factors: speed, security, accessibility, and hygiene. While businesses and customers alike have felt the immense benefits of the cash to contactless transition, the next iteration goes further by digitally transforming the entire transaction process. It’s that potential which pushed me to launch FETCH – technology that allows customers to order and pay from their phone, anywhere. By exploring the benefits already felt by our contactless present, I hope to show you why I’m excited to be part of the contextual payments future.

Speed

Aldi is all about low prices and this is achieved with efficiency – that is why their checkout staff are trained to scan as fast as possible, it’s why their barcodes are huge, and it’s why you can’t keep up. It’s all in the name of efficiency and cost saving, and contactless payments make this possible.

While increasing the rate of transactions has a direct impact on money through the till, there is an increase in the perceived speed which does wonders to get customers back through the door. Shoppers may have spent an hour or more in-store but their direct interactions with the shop and staff were quick and timely and that’s the experience they remember and the impression they build of the brand.

Aldi are not alone in realising this and while it is easy to point to the impact that contactless has had on the retail sector, its revolution has slowly crept into hospitality –  an industry notoriously late at adopting new technologies.

High-street coffee shops rely on getting as many people as possible through the doors and back out again. They want as little disruption to your day as possible but more importantly, they want to process as many payments per hour as possible. Cash transactions are slow in comparison to a single tap, so for the coffee shops, this means fewer transactions per hour and money lost. For businesses in this sector who rely on periodic rushes, measuring performance per hour is a necessity and maximising revenue over these short windows is so important.

For reasons obvious to anyone who has been to a crowded hospitality venue, stood at a crowded bar or waited for waiting staff during a busy dinner rush, the businesses in this space already running on contextual ordering systems like FETCH have all reported a vastly improved staff and customer experience in hospitality venues. While it may be difficult to spot how these benefits can be felt in retail, this reality is not bound to fiction or the distant future – it’s being pioneered already in retail by Amazon.

In a well documented glimpse into the future of shopping, Amazon’s latest Seattle store removes the transaction element completely. Instead, you put your items in your trolley as you go round the shop, and the sensors and cameras accurately and automatically recognise the items, keeping a track and total, before taking payment automatically and digitally through your Amazon account once you walk the trolley back out of the store. Can you imagine standing in a supermarket queue to pay once you’ve experienced the ease, simplicity and effortlessness of that?

Accessibility

Smartphones have got smarter and they have revolutionised the way we get through the day. From how we discover, connect, and socialise, to how we organise, learn, navigate and search for answers – rarely an hour goes by where we aren’t using our phones for something.

As time moved on they only grew to become more capable, responsible for managing more aspects of our lives, and it was only a matter of time before they were capable of handling secure contactless payments. The leap for people to trust their smartphones with just one additional task was tiny.

When you couple this with debit and credit cards being enabled with contactless technology by default, the rise of wearables, and e-commerce growing massively, the results are clear – people are more trusting of online payments, are more familiar with buying in this way, and have more ways of making contactless purchases, than ever before.

In fact, a Mastercard survey in 2016 indicated that Brits carry less than £5 in cash on average, with 14% of people surveyed carrying no cash at all, and 1 in 10 replacing wallets and purses altogether, opting for a simple card in the pocket instead. Figures which have no doubt grown even starker since 2016.

When we take this into consideration with 99% of 16-24 year olds, 98% of 25-34 year olds, and 95% of 35-54 year olds all being smartphone owners, we begin to see the inevitability of contextual payments as the next iteration and how the response to contextual payments will be positive and welcome; something FETCH clients and the vast majority of their customers can all attest to.

Security

Cashless payments means no cash in the till or on-site; no chance of mistakenly accepting fraudulent notes or coins; no trips to the bank to deposit or withdraw cash for the till; the end of time spent counting money every day, and the end of discrepancies which occur from this.

It limits the levels of theft, switches businesses over to an accurate, secure and efficient system, and gives business owners their time back. It makes tax returns, financial planning and forecasting and more all possible, easier and quicker and in short, it makes businesses stronger.

Jason Jeffreys

Jason Jeffreys

Contextual payments go further by offering really insightful data of what happens before and after people decide to part with their money; for example, how long they spend browsing before ordering, what they look at, what they’ve missed, when they order next and more. This means you are informed and can redesign and improve the user journey so it works better for you and your customers, all based on accurate, relevant and timely data.

As contactless payments evolve to contextual ordering, it’s important to choose a system that easily integrates with the wider business and your systems so you can continue to access the benefits of contactless. That’s why from day 1 of building FETCH I put so much emphasis on ensuring it integrates with one of the biggest and most popular POS systems in hospitality.

Hygiene

Initial adoption has long been the biggest barrier to widespread, sustained use of new technologies and going cash-free is no exception.

Given that the coronavirus thrives and passes through human contact and shared surfaces, going cash-free and contactless was a small, easy and obvious change to implement for businesses to become covid-secure and safer for customers and staff.

FETCH and other contextual payment systems are being used to go beyond this, to keep staff and visitors safe by limiting human contact beyond just payments. In our case, we have allowed hospitality customers to continue to browse, place their orders and pay, just as before, but without the need for repeated human contact at every single stage.

Given the health imperative and coercion from governments, local authorities and health bodies to switch to contact-free operations, businesses who may have once been years away from this change are laying down the infrastructure today out of necessity and it will be no surprise if contactless becomes a staple long after the coronavirus has left.

Post-coronavirus, contextual ordering offers businesses the chance to let the technology take care of these minor tasks, giving staff the space to instead dedicate their time, talent and energy towards elevating the overall experience. It’s the health imperative that acts as the gateway to this.

What does this transition mean for businesses? With visible consideration and effort put into hygiene, you are making your customers feel safe and cared for; by making transactions quick and painfree, you are giving your customers time to spend on the experience they came out for in the first place. In the process, you have created the ideal conditions for consumers to spend money and given them the confidence to do so.

I’ll end with the picture UK Finance data has painted through multiple annual payments reports: in 2006, 62% of all payments in the UK were made using cash; three years later it dropped to 58%; in 2016 the proportion had fallen to 40%; and just two years after that, cash formed just 28% of all UK payments. With a pre-covid prediction envisaging that by 2028 fewer than 1 in 10 payments will be made by cash, the widespread, covid-induced encouragement, adoption and enforcement of cashless policies in retail and hospitality has surely brought that many years forward.

Contextual ordering is the next inevitable iteration and if you were one of the few who reaped the benefits of going contactless early, you have the chance to be ahead of the curve once more. A welcome future for a multitude of industries is being set around us today.

Continue Reading
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.

Call For Entries

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

Latest Articles

How CFO’s can Help Their Businesses Successfully Navigate The Financial Fallout From COVID-19 4 How CFO’s can Help Their Businesses Successfully Navigate The Financial Fallout From COVID-19 5
Top Stories21 hours ago

How CFO’s can Help Their Businesses Successfully Navigate The Financial Fallout From COVID-19

By Mohamed Chaudry, Group CFO of FoodHub 2020 has been one of the toughest years in recent memory for business....

‘Senior-preneur’ (age 65) develops online learning platform ‘Dragonista’ - helping students access education remotely 6 ‘Senior-preneur’ (age 65) develops online learning platform ‘Dragonista’ - helping students access education remotely 7
Technology21 hours ago

‘Senior-preneur’ (age 65) develops online learning platform ‘Dragonista’ – helping students access education remotely

Dragonista’s live online lessons go global South Woodham Ferrers, Essex 24th November, 2020.  Age 65, Essex’s Alan Jones took the...

Tech talent visa sees 48% increase in applications over one year as global founders look to the UK 8 Tech talent visa sees 48% increase in applications over one year as global founders look to the UK 9
Business1 day ago

Tech talent visa sees 48% increase in applications over one year as global founders look to the UK

Demand for Global Talent Visa applications has increased over two consecutive years since 2018 – up 45% and 48% respectively Demand is...

New digital first bank - Monument - announces its key technology providers 10 New digital first bank - Monument - announces its key technology providers 11
Banking1 day ago

New digital first bank – Monument – announces its key technology providers

Monument selects Mambu, Salesforce, Amazon Web Services, Persistent Systems and Accenture as key providers for its technology build Monument is...

COVID-19 and PCL property – a market on the rise? 12 COVID-19 and PCL property – a market on the rise? 13
Investing2 days ago

COVID-19 and PCL property – a market on the rise?

By Alpa Bhakta, CEO of Butterfield Mortgages Limited Over the last five years, demand for prime central London (PCL) property...

Are bots eating your Facebook budget? 14 Are bots eating your Facebook budget? 15
Business2 days ago

Are bots eating your Facebook budget?

By Mike Townend, founding CMO of Beaconsoft Ltd In an increasingly digitised world, social media has arguably become the most...

The Hidden Costs of International E-commerce 16 The Hidden Costs of International E-commerce 17
Finance2 days ago

The Hidden Costs of International E-commerce

By Gavan Smythe, Managing Director, iCompareFX Taking a business globally can be an attractive prospect, potentially targeting markets with fewer competitors, taking...

Digital Euro Could Spur Major Breakthrough Towards More Liberal EU Payments Market, Expert Says 18 Digital Euro Could Spur Major Breakthrough Towards More Liberal EU Payments Market, Expert Says 19
Finance2 days ago

Digital Euro Could Spur Major Breakthrough Towards More Liberal EU Payments Market, Expert Says

The recent talks about a possible digital version of euro have raised discussions throughout the industry. According to Marius Galdikas,...

Advanced Acquiring: How can omnichannel merchants optimise all payment needs through one provider? 20 Advanced Acquiring: How can omnichannel merchants optimise all payment needs through one provider? 21
Business2 days ago

Advanced Acquiring: How can omnichannel merchants optimise all payment needs through one provider?

By Marc Docherty, Head of UK Acquiring / Large – Strategic Business, Ingenico, a Worldline brand Today’s consumers are constantly moving,...

UKRSIBBANK, part of BNP Paribas Group, announces a strategic partnership with financial wellbeing startup Dreams, to enhance the digital user experience of its 2 million customers in Ukraine 22 UKRSIBBANK, part of BNP Paribas Group, announces a strategic partnership with financial wellbeing startup Dreams, to enhance the digital user experience of its 2 million customers in Ukraine 23
Banking2 days ago

UKRSIBBANK, part of BNP Paribas Group, announces a strategic partnership with financial wellbeing startup Dreams, to enhance the digital user experience of its 2 million customers in Ukraine

The technology powering popular consumer app, Dreams – which has helped 460,000 users save over 440M EUR – will be...

Newsletters with Secrets & Analysis. Subscribe Now