Connect with us

Technology

HOW CHARITIES CAN MEET TOMORROW’S DIGITAL CHALLENGES?

By Steve Georgiou, Business Consultant at Xpedition 

 

Charities are under constant scrutiny for how they handle their finances. Budgets are often squeezed and as a result, it can be hard to justify spending on mediums such as new technology, which aren’t always seen as “necessities.”

And yet, there’s a new generation of workers waiting in the wings who have grown up using technology in all aspects of life.  There are also 57% of charity employees who believe the sectors’ development is being hindered by lack of embracing new technology. For those that are willing, a digital strategy has never been more important for a charity’s future outlook.

 

The Next Generation

Many organisations are not prioritising the technological expectations of today’s younger generation. -. Everything outside of the workplace for the upcoming generation is already technology-driven, including the skills they’re learning right now. It’s already disrupting industries and career plans, and by the time this generation steps into employment, the way we live and work will have become even more advanced.

Competition in the Third Sector has always been on the up. Donation methods have changed, securing funds has never been more competitive, reporting is now a lot more stringent, and the next generation of employees have defined efficient methods of ensuring the organisation they are employed by is not left behind.

For charities that are using legacy financial systems that are often old, outdated and costly to maintain, if they do not take the steps now to digitally transform, they’ll fall further behind. Good governance dictates Charities should be investing in modern technology to support the organisation in both its medium- and long-term digital strategy. Ultimately, Charities want to engage stakeholders and employees, simplify processes, streamline efficiency and guide change – but they cannot do this without investing in modern technology to enable change in this fast-moving digital world we live in.

 

A Digital Future 

In times gone by, financial systems were predominantly used to support the back-office finance function. This has all changed. With advances in technology, such as the latest all-in-one financial management solutions, there are now tangible benefits that add value to the whole organisation.

These tools can strengthen decision making, reduce administration time and provide real-time, accurate reporting, all of which are valuable assets for tomorrow’s demands.

There is a real case to be made for a fully digital third sector using financial technology one which thrives and gives not-for-profits huge benefits:

 

Data Management and Analysis

The contemporary digital landscape is all about big and beautiful data. Job roles are evolving to cater for the data boom, organisations are now hiring increasing numbers of Data Analysts and Business Analysts. And one of the most significant benefits that the third sector can expect to see by taking on digital methods is greater data transparency.

The world’s most valuable resource is no longer oil, but data. Data is being transformed into a core asset, one which is being used to tackle charity-wide challenges. Daily admin duties such as data analysis and entry are being taken over more and more by financial management solutions.  This not only removes the need for online time-heavy tedious tasks, but also reduces the number of different sources people have to use to find and analyse data.

Whether it is finance, fundraising, HR or anything else, the efforts of the organisation should be in the analysis of the data to make better informed decisions in the best interests of the charity.

 

Use Cloud to Reduce TCO 

The resistance to change and the associated investment have been barriers to digital transformation for charities. Every organisation wants to achieve greater efficiency and free-up further funding for their frontline

Activities, such as maintaining hardware and the disruption of upgrading are all a thing of the past.

From maintenance to mobility, cloud computing can help you to significantly reduce the Total Cost of Ownership (TCO). With the cloud, there is no need for onsite hardware or expensive upgrades – you are simply sent a URL for storage. This offers you the flexibility to scale your data storage capacity depending on your needs at the time, avoiding the need for expensive hardware. This on-demand, “pay as you grow” approach avoids hedging your bets on unnecessary data storage. The cloud also has greater mobility, allowing for remote workers to access communications from anywhere, with no further technology needed. Backup and restore can be initiated from any location, using multiple devices, and does not need maintenance – reducing the need for a dedicated IT person.

 

Consider Digital, before your Charity becomes marginalised.

With a new generation of workers waiting in the wings, and financial management technology that has the power to provide value for all aspects of the organisation, a digital strategy has never been more important for a charity’s financial efforts. They will not settle for a business that is stuck a decade behind due to not embracing change.

Technology

COUNTING THE COST OF SILENT CYBER

– Akber Datoo, Founding Partner, D2 Legal Technology

 

Damaged reputation. Financial loss. Punitive capital adequacy provision. Silent cyber is one of the biggest issues facing the insurance industry. Yet despite the Prudential Regulatory Authority’s (PRA) demands for robust action plans, few firms have put in place the document digitisation required to truly understand the level of risk. Further, it is somewhat ironic that an industry that is predicated on pricing risk, is failing to assess and understand this risk that exists today in its back catalogue. From determining the current silent cyber position to identifying policy wording changes and analysing the legacy book, Akber Datoo, Founding Partner, D2 Legal Technology, highlights the need to digitise policy documents.

 

Non Affirmative Loss

“Silent Cyber” is the term given to cyber related losses that may/or may not fall under a traditional property and liability policies that were not designed for that purpose.

The concerns of silent cyber have recently come to the fore and the shock waves created by the Mondelez / Zurich Insurance case have reverberated around the market. Whilst publicity may have temporarily abated over the past few months, very few insurance companies have begun to truly address the risk posed by silent cyber. In an industry predicated on strong reputation, the decision by Zurich to reject a claim from a client whose business had been devastated by the NotPetya cyber-attack in 2017 made headlines around the world – not least for citing exclusion for ‘hostile or warlike action in time of peace or war’ by a ’government or sovereign power’.

Yet as the cost of such attacks are being counted, the impact of silent cyber on the industry as a whole is becoming painfully apparent. PCS Global Cyber has recently attributed 90% of the insurance industry’s losses relating to the NotPetya cyber-attack to non-affirmative (silent) cyber, and the rest to affirmative losses.

Certainly, the PRA believes the UK insurance industry can do more to ensure the effective management of affirmative and non-affirmative cyber risk exposures. It has ordered firms to develop an action plan, with clear milestones and dates by which action will be taken.

 

Divergent Attitudes

Despite the cost to the industry, there remains a concerning lack of consistency in terms of risk awareness and planning as well as risk appetite and understanding. The PRA’s own survey in 2018 revealed significant divergence in firms’ views of the potential exposure to silent cyber. Within Marine, Aviation and Transport (MAT), Property and Miscellaneous lines, exposure was rated at anywhere between zero and the full limits.

With PCS Global Cyber believing the cost to the industry of NotPetya associated claims has now exceeded $3 billion, there is ever greater focus on insurance companies’ cyber stress tests. Fears that gross losses could run into the multiples of annual cyber premiums are very real. However, to date such exercises are based on minimal fact: firms lack robust or reliable claims data relating to silent cyber. As a result, models are immature and there is little faith in the resultant capital adequacy calculations. Just how much capital should the regulator demand firms to set aside against possible exposures when the silent cyber risk is so poorly understood?

In addition to the model and assessment demanded by the PRA, firms need to look closely at existing policy documentation to gain better insight into risk. What is the current position? Does wording need to be amended to address silent cyber risk? How can the legacy book be analysed and key data and wording from the contracts extracted to assess the potential silent cyber exposure going forward?

 

Document Digitisation

In many ways, the insurance industry is better placed than many for the challenges ahead. Document digitisation has been on the agenda for some time and the industry has already created clause libraries to make it easier for firms to gain access to vetted policy wordings and regularly used clauses. However, the low take-up of these libraries is disappointing. Not only do firms have a somewhat confusing choice – between the Lloyd’s Wording Repository, the IUA (International Underwriting Association) Clauses Document Library and the Xchanging Model Wordings Library, but the checklist structure is not providing the required solution.

Insurance companies and brokers need to better understand how to use these clause libraries within current business models, preferably in tandem with a document generation tool to improve data management. The goal is to create data driven contracts, where documents are drafted based on known outlooks. But to get to that point, firms need to actively embrace document digitisation to gain a better handle over the current risk position and create a foundation for rapidly changing wording to avoid any ambiguity regarding silent cyber. Moreover, we need the link wordings in clause libraries to classified business outcomes, and then derive business intelligence from policy portfolios.

 

Conclusion

No firm wants to risk the reputational damage associated with refusing a high profile claim – nor endure the huge losses associated with attacks such as NotPetya. With the rise in cyber attacks, this is an issue that has to be addressed immediately: firms need to act now and embrace the opportunity of digitisation strategies within policy documentation to mitigate the potentially devastating silent cyber risk.

 

Continue Reading

Technology

TECHNOLOGY DRIVES VALUE IN 2020.

By Paul Twite, Managing Director Europe & MENA, ITWP, parent company of Toluna

 

When the ultimate space cadet and entrepreneur Elon Musk, tells the world in an on-stage interview that, when entering new businesses, “I do zero market research whatsoever,” you know you are in interesting times.

2019 had more twists and turns than the latest Netflix blockbuster. New players invested in the industry: private investment firm Bain Capital acquiring a 60 percent share of Kantar and SAP buying Qualtrics for $8 billion.

There was also a changing of the old guard: GfK sold a chunk of its business to Ipsos and some former rivals joined forces with the merger and integration of Research Now and SSI.

So, what’s next for the sector?

Market research industry consolidation means customers may have less choice – with fewer, bigger research platforms. By default, consumer package goods, financial, telecommunications and media & entertainment corporations may soon do all their testing – from ideation to business analysis to commercialisation –  with a single research partner, leading to bigger brand and firm partnerships.

 

Double down on technology

Technical advancements mean that research-savvy brands become less dependent on services and double down on tech with two key strands immerging:

  • Automation based on best practice techniques. This will ensure maximum efficiency, enabling users to focus on interpreting what the results mean and their business implications
  • AI and machine learning will provide opportunities to mine data more efficiently and effectively as data from both primary and secondary sources grow

 

The upside of the global innovators: speed, rigour, agility and quality

The benefits of doing more research with fewer partners are apparent: greater consistency across results and, possibly, less financial outlay.

Technology means clients can now have the speed, rigour and agility they require. Actions can be deployed from the results, at the pace consumers now demand.

Speed remains a constant. What was fast last year may not be in 2020 but research has also to offer the flexibility to fit with iterative innovation processes.

Agility means using tools and techniques which factor speed and rigour into the process, at the same time, so work of a high quality can be delivered at a faster pace.

As technology continues to evolve and standardise, a benefit of industry consolidation should be that the end data will be more actionable, faster and better quality.

 

The Down Side?

Industry consolidation offers well-known challenges. Consolidated industry sectors can have relatively high barriers to entry, lack of differentiated products, and potentially few, well-established brands with high profit margins. It can also mean that larger firms end up with more business, potentially stunting creativity and competition. In the market research sector, single partner testing without the checks and balances of diverse inputs could result in worse and not better decision making.

Consolidation in the car industry has seen relatively few global manufacturers frantically buy share, interestingly it is still Mr. Musk’s technology-driven Tesla which boasts a higher MarCap than competitors General Motors and Fiat Chrysler.

It’s the same in the market research industry where only the truly, technology-based businesses will thrive on a global scale.

 

Continue Reading

Magazine

Partner Events

Trending

Banking2 days ago

BANKS UNDER ATTACK: HOW FINANCIAL INSTITUTIONS CAN PROTECT DIGITAL GROWTH

By Victor Acin, Threat Intelligence Analyst, Blueliv   Financial services firms are increasingly being told to embrace disruption in order...

Banking2 days ago

THE ROLE OF NEW TECHNOLOGY IN DEVELOPMENT OF MYANMAR’S BANKING INDUSTRY

U Htoo Htet Tay Za, Managing Director, AGD Bank   Myanmar’s economy is one of the fastest growing in Asia...

Business2 days ago

WHY 2020 IS THE RIGHT TIME FOR FS MODERNISATION

Chris McLaughlin is chief product and marketing officer at Nuxeo   Few would argue against the notion that the UK...

Top Stories2 days ago

WHAT DOES 2020 LOOK LIKE FOR P2P LENDING?

By Roberts Lasovskis, Investment Platform Lead, TWINO   It’s a new year; time for resolutions and forward planning, positivity and...

Business2 days ago

WHY MAKING MONEY ON YOUR MOBILE IS EASIER THAN YOU MIGHT THINK

Aaron Brooks, Co-Founder of  Vamp   For Millennials and Generation Z, becoming a social media influencer is an increasingly desired...

Interviews3 days ago

DIFFERENTIATION – THE KEY TO THRIVING IN A SATURATED MARKET

Graham Glass, CEO of Cypher Learning   What has enabled Cypher to continue to grow in an increasingly saturated market?...

Finance3 days ago

WILL BLOCKCHAIN REVOLUTIONIZE FINANCE?

By Ken Timsit, ConsenSys   Over the last 10 years, researchers, software developers, start-ups, and large companies have been conducting...

Banking3 days ago

FIVE FINANCIAL SERVICES TRENDS FOR 2020: BIGTECHS SWOOP IN, BANKS GO ON THE OFFENSIVE AND CRYPTOCURRENCY STALLS

Rahul Singh, president of financial services at HCL Technologies   We’ve just finished a very exciting decade in financial services, with new...

Wealth Management3 days ago

COMBATING INSURANCE FRAUD WITH MACHINE LEARNING

By Georgios Kapetanvasileiou, Analytical Consultant at SAS   Most insurance companies depend on human expertise and business rules-based software to...

Business3 days ago

DELIVERING SUCCESSFUL IT SYSTEMS THROUGH THE POWER OF PARTNERSHIPS

By Mike Smith, Executive Director, Virgin Media Business (Direct)   Is there anything more frustrating than finding out your bank account...

News3 days ago

BATTLEFACE RECEIVES INVESTMENT FROM FINTECH VENTURES FUND

battleface Inc., a rapidly growing tech-enabled insurance startup focused on providing travel insurance products for unconventional travellers worldwide, announced today...

News3 days ago

VANQUIS BANK PARTNERS WITH HOOYUTO DIGITALISE KYC PROCESSES

HooYu KYC digital journey deployed during the customer lifecycle on a risk-based approach   Leading customer onboarding and KYC technology...

Banking3 days ago

WHY NEOBANKS ARE ON THE RISE IN THE UK

New research by SmallBusinessPrices.co.uk analyses how neobanks are on the rise and why they’re so popular amongst consumers compared to...

Finance4 days ago

RECOLLECTING 2019 CRYPTOCURRENCY TRENDS & LOOKING FORWARD TO 2020

Marie Tatibouet is the CMO at Gate.io   It has been a bold and progressive year for the digital asset...

Banking5 days ago

WILL HONG KONG REMAIN THE JURISDICTION OF CHOICE FOR OFFSHORE BANKING?

Hong Kong has traditionally been seen as a tax haven and the financial hub of Asia, if not the world....

Technology5 days ago

HOW CHARITIES CAN MEET TOMORROW’S DIGITAL CHALLENGES?

By Steve Georgiou, Business Consultant at Xpedition    Charities are under constant scrutiny for how they handle their finances. Budgets...

Business5 days ago

RECALL YOUR REPUTATION: HOW TO HANDLE PRODUCT RECALLS

By Alex Balcombe, Partner at Harris Balcombe   John Lewis, Tesco, and Hotpoint have all been in the news in...

Business1 week ago

THE WORLD’S MOST ENTREPRENEURIAL COUNTRIES PERFECT TO START A BUSINESS IN

Latona’s has analysed The Global Entrepreneur Monitor data to reveal the world’s most entrepreneurial nation. Analysing each country by a...

News1 week ago

MENDIX SUPPLIES RABOBANK WITH LOW-CODE PLATFORM TO BUILD NEW CORE ONLINE BANKING APPLICATION

New online portal leverages low-code’s speed and flexibility   Mendix, a Siemens business and the global leader in low-code and...

Finance1 week ago

RETIREMENT ANNUITIES AND THEIR ADVANTAGES EXPLAINED

By Gerard Visser, Financial Planning Consultant at Alexander Forbes   There are a number of ways to save and a...

Trending