In today’s fast-paced world, there is often a tendency to rush into things without taking the time to carefully plan and strategize. This is no different when it comes to embarking on a transformation journey, especially when it involves configuring a complex system like SAP. 

It may be tempting to return to the past and immediately start configuring SAP, hoping for quick results. However, this is a mistake that can have long-term consequences.

When it comes to implementing a new system like SAP, it is crucial to invest the necessary time and energy upfront. This means taking the time to carefully plan and strategize before diving headfirst into configuration. By doing so, you are setting yourself up for long-term success. Rushing into configuration without proper planning can lead to costly mistakes and inefficiencies down the line. Starting out slowly and investing the necessary time and energy upfront may seem counterintuitive when you are eager to see quick results. However, taking this approach can actually expedite your transformation journey in the long run. By carefully planning and strategizing, you are ensuring that you have a solid foundation in place before beginning configuration. This will help you avoid costly rework and delays later on.

If you are looking to make a change that is not just temporary but also sustainable and value-creating, you must shape your transformation program. One of the key outcomes mandated by Stage 1 of our ‘SAP S/4HANA Large-Scale Transformation Program’ is to comprehend the forces driving change and to ensure that the transformation ambition is precisely defined, accepted by executives, and clearly communicated to and understood by the various business stakeholders.

How then do we achieve this clearly defined transformation target, also known as the Business Case for Change or the Why Change?

We use the following five steps to guide the Stage 1 – Shape Program activities that result in achieving the required Stage 1 outcomes.

The following are the five steps and their main objectives (although this is not a complete list of the tasks required to accomplish the stage results):

1. Identify the goals of the business and the value levers needed to achieve these goals. To do this, we interview a number of CxO-level and senior business stakeholders to learn about their pain points, goals, and priorities. We also try to comprehend the business’s capabilities and operational models, and we submit that information, along with the compiled and analysed interview notes, for evaluation in step 2.
2. Next, we move on to step 2: Value Stream Mapping. Wave 1. Value Stream Mapping is the method we use to comprehend the real, end-to-end business value streams and the business scenarios to which they are applicable. Understanding these supports the understanding of the current and target maturity for each capability change (the value lever) necessary for the transformation to take place in addition to helping us define the LTP boundary conditions, which are outputs from step 1.
3. Once we have a clear picture of ambitions and benchmark of current state against target, we can finalize the high-level scope of changes and target Enterprise Architecture models.
4. We’ve reached the fourth and final step, where we can use all the data gathered to model the business case scenarios, giving us a range of targets (from low to stretch) to choose from as we move on to the next LTP Stage. Determining the business engagement strategy is a crucial parallel task that must be completed now (and even earlier in the process), as it will determine whether or not one of any program’s most challenging aspects, and especially one of a large-scale transformation, will be successful. We must make sure that every stakeholder is involved in the process from the beginning and that they are not just spectators but active participants. When a transformation succeeds, everyone succeeds, and when it fails, everyone fails.
5. Once the business engagement strategy is in place and a target transformation has been determined, it is time to present the Business Case for Change to senior leadership to make sure they are all pulling in the same direction and committed to not only sponsoring but also inspiring the transformation.

The goal of these 5 steps is to reach the 6 mandatory Stage 1 outcomes, which make sure that solid foundations have been laid and can be built upon in the next stage of the transformation journey.

These 6 imperative results are:

1. The preliminary evaluation of the business case
2. The initial roadmap for the transformation, which includes program resources
3. Agreement on Business Engagement Strategy
4. A target for the initial enterprise architecture
5. Agreement on program governance, tooling, and the following Stage plan
6. Executive agreement and approval

And even though all of this may seem overwhelming and be viewed as unnecessary by organisations, particularly if they have already made the decision to simply replace their system, Stage 1 must be completed in order to truly transform and deliver sustainable business change that adds value. It must be done well and is not an option.

Capgemini’s event gathered eco-conscious leaders to explore how companies can drive positive outcomes for people and the planet

Capgemini brought together sustainability experts and environmentally conscious professionals recently for its New York Sustainability Connect event at its office in the bustling Union Square neighborhood of Manhattan.

The event on June 18, 2024 assembled experts from various industries for an evening of networking and lively discussion on different aspects of our collective transition toward a cleaner future. The topics included the current state of play for sustainability in the Americas, climate risk in financial services portfolios, and job creation in the growing green economy.

Current state of play for sustainability in the Americas

Our presenters:

• Vincent Charpiot, EVP and Head of Group Sustainability Accelerator at Capgemini (moderator)
• Shobha Meera​, Chief Corporate Responsibility Officer at Capgemini
• Sol Salinas, Global Executive Vice President & North America Sustainability Lead​ at Capgemini
• Satish Weber, Head Executive VP of the Sustainability Financial Services Strategic Business Unit at Capgemini.

Discussions around environmental, social, and governance (ESG) factors too often amount to little more than “motherhood and apple pie” – feel-good platitudes that do little to advance the conversation.

The panelists from Capgemini wanted the conversations to be meaningful by addressing the potential benefits and obstacles, from strategy to execution, and avoiding cheerful reassurances. The upshot of the first panel was that embracing sustainability is no longer an option: it’s a business necessity.

Internationally, business value is a leading – if not the leading – driver of sustainability initiatives. In the US, adhering to regulations tends to top the list of incentives.

Of course, sustainable projects that don’t deliver quantifiable outcomes will ironically not be sustainable for that organization. But delay won’t help either, because the competition will be adopting new, clean technologies that will accelerate business objectives while earning trust from the public and investors.  

In recent years, sustainability has become a hyper-driver of innovation in product, business, and service models.

Opportunities to secure funding for sustainable projects have never been as plentiful. If there was ever a time for successful business cases around adopting sustainable practices or sourcing renewable energy – whether wind, solar, geothermal, hydropower, ocean energy, etc. – that time is now.

The Biden administration is investing around $2 trillion in sustainability, through the CHIPS and Science Act, the Inflation Reduction Act (IRA), and Infrastructure Investment and Jobs Act (IIJA).

Nevertheless, the biggest challenge is the high investment costs, which means access to capital is a key enabler and financial services have a crucial role to play.

Climate risk in financial portfolios

Our presenters:

• Alex Tepper, Global Head of Ventures & Leader in Sustainable Futures at frog, Capgemini Invent (moderator)
• Sandro Chen​, Banking Engagement Lead at Climate X
• Maritzabel Mayoral, ESG Coverage Vice President at MSCI
• Ashley Cooke​, Institutional Client Coverage, Alternatives/Renewables at HSBC.

Both private and public funds are crucial to developing new technologies for ESG projects. Private companies and venture capitalists take significant risks to fund promising new technologies. Then the public sector enables large-scale implementation and adoption.

Investors have the unenviable task of not only determining which startups and established businesses herald the greatest returns, but also deducing which sustainability efforts are in good faith.

The truth eventually comes out, so any financial backing built on shaky sustainable practices could dissipate. It’s important for investors to have an accurate picture of a company’s sustainability claims early on.

Greenwashing, the act of promoting vague or misleading commitments to sustainable practices with minimal or zero legitimate effort to reduce environmental impact, is sadly all too common.

Providers of investment decision support tools and services can help people sift through all the relevant information to determine which companies live up to their eco-friendly messaging.

It’s still difficult to evaluate ESG investment opportunities without a standardized, recognized data source. At the moment, hundreds of different companies gather and organize similar datasets, with sometimes diverging or even contradictory information. The sooner the industry establishes and embraces a single, open source of ESG data, the better for all involved.

In the past, anyone investing in ESG was liable to hear someone suggest he or she was “giving up their returns.” But this misunderstanding has slowly changed, as more companies find success in the space and sustainable business practices are better understood as a profit center rather than a cost center.

It’s also worth noting that many promising investment opportunities exist in emerging markets, which contribute less than 14 percent of global greenhouse gas emissions but are more vulnerable to the effects of climate change.

Green jobs

Our presenters:

• Alex Hammer Ducas, Senior Strategy Director and Private Sector Lead at Purpose (moderator)
• Kevin Eckerle, Director of ESG Performance, Operations, and Consumer Health at Bayer
• Caitlyn Brazill​, Chief Revenue Officer​ at Per Scholas
• Matthew Beller​, Senior Advisor at the NYC Mayor’s Office of Talent and Workforce Development.

Many positions we think of as green jobs weren’t available just a few years ago. And we don’t yet know all the new green positions that will open up in the near future.

This applies just as much to emerging, explicitly green jobs and traditional roles – such as controller or accountant – that will increasingly focus on sustainability.  

A major company in the past may have had a single job for a sustainability expert, but now it likely has many experts on various aspects of sustainability and roles that incorporate the movement’s concerns.

Unfortunately, a skills gap separates many jobseekers from openings in sustainability. Given the fluid nature of the green job market, one of the best ways to prepare young adults for a career in sustainability is through technological training.

Organizations like Per Scholas, a nonprofit committed to equitable education access based in the Bronx, NY, provides tuition-free skills training to people typically excluded from tech careers.

Preparing people for tech careers that support the sustainability transition helps address social and environmental challenges simultaneously.

Embracing the apprenticeship model of job training, which is more common in Europe than the US, could also help connect young people land new jobs in the burgeoning green economy.

Developing a greener tomorrow

Despite some headwinds, today’s market is promising in terms of accelerating a more sustainable future. Throughout the Americas, the transition toward sustainability is characterized by meaningful progress and persistent challenges.

Whether looking to build a career or invest, considering ESG factors early and often can help people stay on the cutting edge of technology and business trends.

New York Sustainability Connect concluded with networking opportunities, so the attendees could discuss what they had heard and develop relationships, perhaps even partnerships.

There are ongoing challenges to accelerating sustainability, but green initiatives incentivize cooperation and goodwill, whereas business as usual can incentivize avarice and suspicion. After all, the effects of pollution and anthropogenic global warming affect everyone and it’s going to take collective (in addition to individual) action to mitigate their most harmful consequences.

But with events like New York Sustainability Connect, we can start to make meaningful changes, together.

Quantum Computing has the potential to revolutionize many industries by solving complex challenges that classical computers cannot yet solve or that they struggle to solve (*), given the enormous computational requirements and the long time to get the needed results.  

It is important to note that not all challenges will require quantum technology. Quantum computing excels at specific types of calculations, such as optimization, cryptography, and simulating quantum systems. 

Quantum however requires revisiting current approaches to overcome limitations of current models and costly build-and-test cycles. This is the case for example in aerospace (aerodynamics), in energy transition (modelling and simulating energy storage materials, such as Li-ion batteries and fuel cells) or financial services (portfolio optimization). 

With quantum technology rapidly maturing and business benefits becoming clearer, industries now realize that quantum will play an undeniable role in solving todays and tomorrow’s specific challenges in the future.  

This quantum advantage will translate into a competitive advantage, which is why organizations are eager to embrace the quantum adoption paradox: for transformative projects that require quantum capabilities, organizations must now take explicit action towards becoming ‘quantum-ready’ in due time. This includes assessing their organization’s challenges that can be effectively addressed with quantum algorithms and identifying tasks where quantum can offer significant advantage over classical computing methods.  

As we embark organizations on this transformative journey, our preferred partnership with Pasqal, a quantum computing pioneer, is a key asset. Pasqal’s unique approach to constructing quantum processors using ordered neutral atoms in 2D and 3D arrays, a method that leverages Nobel Prize-winning technology, sets them apart in the quantum landscape. These neutral atom quantum processors offer a realistic pathway to near-term quantum advantages and provide exciting opportunity for enterprises to begin developing applications today, making them a game-changer in this technology. 

In 2023, we became a strategic investor in Pasqal through Capgemini Ventures’ CVC fund. Our investment and preferred partnership are built upon a solid collaboration since 2019 which crystallized in the EQUALITY consortium, as part of the EU’s Horizon Europe initiative. 

Capgemini quantum endeavor is fronted by our Quantum Lab focusing on applied quantum research and builds on our internal capabilities ranging from consulting to engineering as well as on interaction with our external partners such as Quantum. All this enables us to integrate world-class quantum hardware and software solutions into quantum-centric supercomputing stacks, giving enterprises a competitive advantage through an unparalleled quantum ecosystem. 

Together with Pasqal, we help organizations realize the full potential of quantum by taking quantum from R&D to production, focusing primarily on augmenting existing high-performance computing workflows. Capgemini’s role in this partnership is to provide strategic guidance and practical implementation support, accelerating the transformation and operationalizing our clients’ adoption of quantum technology.  

Our joint involvement with industry leaders like Airbus and the German Aerospace Center is a good illustration of the multiple exploratory use cases: they include battery and fuel cell design, airfoil aerodynamics, fluid dynamics, space mission optimization, materials design, multidisciplinary optimization as well as space data analysis. 

Our commitment to supporting organizations in adopting the quantum paradox towards achieving quantum value is unwavering. We truly believe that partnerships are the driving force behind innovation quantum adoption. The recently announced partnership between IBM and Pasqal is a significant step forward, and will no doubt contribute to the accelerated adoption of quantum technology. 

_{(*) The promise of unprecedented computing power to solve current intractable problems is a very attractive proposition for quantum computers. But these quantum computers also have the potential to represent a significant threat to the security of many cryptographic systems that we currently use. This issue, referred to as “Y2Q,” is anticipated to require one of the largest global migration programs affecting most of the information and communication systems since Y2K. Read more about this in our report Y2Q: A journey to quantum safe cryptography and in this article from the World Economic Forum.} 

Discover More about Pasqal and our partnership.

An Executive summary

As financial institutions grapple with the digital revolution, the Digital Operational Resilience Act (DORA) is emerging as a game-changing legislative framework mandated by the European Union (EU). With cyber threats looming large, DORA aims to strengthen operational resilience in the financial sector, requiring a fundamental shift in cybersecurity governance.

To thrive in this new landscape, financial organizations must adopt a top-down approach to cybersecurity, with board-level From smoke signals and carrier pigeons to high-tech devices and networks, like the telephone, internet, and Global System for Mobile Communications (GSM)/2G, the communication journey has come a long way. at the forefront. In addition, proactive threat mitigation, robust risk management frameworks, and diligent third-party risk management are essential to DORA compliance.

As DORA gears up for full implementation by January 17, 2025, download our point of view to learn about the essential cybersecurity elements mandated by DORA and the necessary steps financial organizations must take to ensure compliance.

INTRODUCTION

In an era dominated by digital transformation, the financial sector faces a dual challenge: embracing technological innovation while countering sophisticated cyber threats.

On September 24, 2020, the European Commission adopted the 2020 Digital Finance Package*, consisting of a digital finance strategy and legislative proposals on crypto-assets and digital resilience, for a competitive EU financial sector that gives consumers access to innovative financial products, while ensuring consumer protection and financial stability. From this Digital Finance package, the Digital Operational Resilience Act (DORA) emerges as a pivotal legislative framework introduced by the European Union (EU).

The Digital Operational Resilience Act (Regulation (EU) 2022/2554) solves an important problem in the EU financial regulation. Before DORA, financial institutions managed the main categories of operational risk primarily through the allocation of capital, but they did not manage all components of operational resilience. Under DORA, they must now comply with rules on protection, detection, containment, recovery, and repair capabilities against ICT-related incidents. DORA explicitly refers to ICT risk and sets rules on ICT risk-management, incident reporting, operational resilience testing and ICT third-party risk monitoring. This Regulation acknowledges that ICT incidents and a lack of operational resilience have the possibility to jeopardize the soundness of the entire financial system, even if there is “adequate” capital for the traditional risk categories.

By setting a comprehensive set of cybersecurity requirements DORA aims to consolidate and elevate previous risk requirements across various regulations. These new standards aim to manage cyber risks, streamline incident reporting, implement resilience testing, monitor third-party risks, and facilitate information sharing to enhance the operational resilience of financial entities within the EU.

For the first time, it applies not only for financial institutions settled in European Member States but also for their (critical) ICT providers and suppliers, in line with the 2022 NIS2 Directive. As DORA gears up for full implementation by January 17, 2025, this article explores the essential cybersecurity elements mandated by DORA and the necessary steps financial organizations must take to ensure compliance.

1. Set a “top-down” mandate for your Cybersecurity Governance

Cybersecurity governance plays an essential role in shaping an organization’s security stance. DORA requires the creation of strong governance frameworks tailored to comprehensively address ICT risks. This includes defining clear policies, roles, and responsibilities and integrating cybersecurity into all departments of the organization. These frameworks facilitate informed decision-making, proactive and continuous risk management, and compliance.

Board-level involvement is crucial to ensure that cybersecurity initiatives are closely aligned with broader business objectives and to foster a culture of security awareness across the organization. Their oversight extends beyond the CISO’s office, including strategic direction, risk management, policy development, resource allocation, incident response, and regulatory compliance.

Under DORA, the Board of Directors is personally liable for cybersecurity governance and risk management, including all aspects such as reporting, testing and other necessary measures. This requires a comprehensive understanding of cyber threats to inform decision-making. Moreover, they define and approve the organization’s risk management framework, including third-party strategy, emphasizing the importance of informed decision-making to address emerging cyber threats effectively.

Security awareness of the board plays a key role in this regard, especially considering the potential financial and administrative penalties outlined in DORA, which can include fines, operational restrictions, or even the revocation of licenses or permits.

2. Be proactive with threat mitigation thanks to a robust cyber risk management framework

Organizations must systematically identify, assess, and prioritize cyber risks, aligning with DORA’s requirements. This involves a comprehensive understanding of the ever-changing threat landscape. By staying up-to-date on emerging threats and vulnerabilities, organizations can allocate their resources effectively, ensuring that they are directed towards the most critical areas of risk mitigation.

However, ensuring that this information reaches the right audience and management levels across the organization is equally vital. Often enough, advanced cyber threat intelligence is gathered but not effectively communicated or translated into actionable advice for key stakeholders, such as board members. This proactive approach not only helps in safeguarding sensitive data and maintaining operational resilience but also plays a crucial role in maintaining the trust of stakeholders, including customers, partners, supervisors, and regulatory bodies.

There are several frameworks and standards available to help define and implement a cyber risk management framework. Organizations often turn to internationally recognized standards such as ISO 31000, COBIT5 framework, or the NIST Cybersecurity Framework, which provide guidance in cybersecurity risk management.

Many organizations within the financial sector already have some form of risk management framework in place, often incorporating national good practices, such as those outlined by De Nederlandsche Bank (DNB). However, these good practices will need to align with the stricter requirements introduced by DORA to ensure compliance and enhance cybersecurity governance within the financial sector. By taking a proactive stance on cybersecurity, organizations can effectively strengthen their resilience against potential threats and demonstrate their commitment to safeguarding critical assets and maintaining operational resilience.

3. Secure your digital supply chain by maintaining visibility into your third-party risks and dependencies

In today’s interconnected business environment, the reliance on ICT third-party service providers (ICT TPP) exposes organizations to significant cybersecurity risks. According to a study by ENISA, more than 60% of cyber incidents are caused by supply chain attacks. A supply chain attack is a type of cyberattack that targets both a trusted ICT TPP that provides services or software and its customers across the supply chain. Organizations must extend their security measures beyond internal systems and encompass the entire ICT supply chain, to be able to protect their data.

The risk of ICT TPPs should be reflected in contractually agreed security measures, including the necessary exit strategies when agreements are not met. Furthermore, it is essential ICT TPPs are assessed on their risk before they are contracted and continuously monitored throughout the business relationship to assess their security practices. By proactively managing the risks that ICT TPP may cause, organizations are able to fortify their defenses against potential threats originating from ICT third-party vulnerabilities, safeguarding their assets, reputation, and operational continuity.

Certain ICT TPPs are designated as “critical” (CTTP), requiring direct oversight by EU financial authorities. Designating CTTPs involves a careful examination of their role in the ICT supply chain and how their services could affect the organization’s operations and security. Thorough risk assessments, considering service importance, data access, and potential disruptions, enable effective resource allocation and implementation of targeted security measures.

DORA requires organizations to keep track of all their CTTPs in a register, that must be shared with the local European Supervisory Authority (ESA). This register includes the classification of vendors or suppliers, the services provided, and their importance to the organization’s primary processes. Any new ICT TPP arrangements must be reported to the appropriate authority on a annual basis.

4. Be and stay resilient to maximize your recovery from a cyber disruption

While traditional cybersecurity measures focus primarily on defending against cyber threats, DORA emphasizes the importance of resilience—the ability to recover swiftly and effectively from cyber disruptions, crucial in the face of the evolving threats. In line with DORA’s requirements, organizations are urged to prioritize strategies to prevent and mitigate cyberattacks, shifting focus from impenetrability to resilience, thus building robust mechanisms to minimize damage and downtime during crises.

DORA outlines specific measures that financial institutions must take to enhance their cyber resilience:

• Establish and regularly update data backup procedures to ensure the availability and integrity of critical information in the event of a cyber disruption.
• Develop and implement ICT disaster response plans and business continuity plans that outline procedures for responding to cyber disruptions and ensuring the continuity of operations. These should be periodically reviewed & actualized, completed, and regularly tested in various ways to be well prepared for future contingencies.
• Continuous employee training initiatives to build cyber resilience.

By adopting the proactive approach to cyber resilience, organizations can not only minimize potential disruptions to their operations but also reinforce their ability to maintain operational continuity and protect sensitive data. By prioritizing cyber resilience, organizations not only fortify their defenses against potential breaches but also cultivate a culture of preparedness and responsiveness. In doing so, they not only mitigate risks but also position themselves as trusted custodians of data and stewards of digital trust.

5. Coordinate your plan to respond to a cybersecurity incident

An organized and systematic approach to managing the aftermath of a major ICT related (or security or operational payment-related) incident is essential under DORA.

Organizations must have a tailored incident response plan in place to swiftly detect and respond to incidents, while mitigating the impact on operations and reputation. This includes technical remediation efforts, communication strategies, and legal considerations. By coordinating these response efforts effectively, organizations can promptly contain and eradicate threats, thus facilitating a smoother recovery process. Additionally, national CERT (Computer Emergency Response Team) and CSIRT (Computer Security Incident Response Team) provide vital operational support to help organizations fight cyberthreats. They offer guidance, threat intelligence sharing, forensic investigation assistance, and facilitate collaboration with other entities and government agencies to strengthen overall cyber resilience.

Under DORA, organizations are required to report major ICT related incidents to relevant competent authorities. An initial notification should be reported within one business day, an intermediate report within a week after the first notification, and a final report when the root-cause analysis has been completed, no later than one month.

To determine what is considered as a major ICT related incident, the Joint Committee of the European Supervisory Authorities has provided further guidance on the criteria for classifying ICT-related incidents. In their report, which was published on January 17^th 2024, they stated that ICT incidents can be categorized into three layers:

• Layer 1: To determine if an incident affects critical services.
• Layer 2: To determine if the incident is the result of a successful malicious intrusion.
• Layer 3: To determine whether the incident impacts at least two out of the following six criteria:
• Number of clients affected
• Amount of data loss affected
• Reputational impact
• Duration and service downtime
• Geographical spread
• Economic impact

Under DORA, an ICT incident is classified as major when Layer 1 is applicable in combination with either Layer 2 or 3, and therefore should be reported to the authority accordingly. In addition, clients and users must be informed if they are victimized and within a timely manner. This means that all employees throughout the organization should be aware of their responsibility to report incidents accordingly and in a timely manner.

6. Regularly test your defense capabilities to address vulnerabilities

Operational resilience testing assesses an organization’s ability to maintain critical functions during and after a cyber incident. This involves various exercises such as scenario-based simulations, penetration testing, and simulated cyber-attacks to identify vulnerabilities. By subjecting defences to rigorous stress-testing, organizations pinpoint areas for improvement, ensuring their cybersecurity measures remain robust and adaptable, effectively mitigating the evolving landscape of cyber threats.

These operational resilience tests consist of vulnerability assessments and scans, open-source analyses, network security assessments, gap analyses, physical security reviews, questionnaires and scanning software solutions, source code reviews where feasible, scenario-based tests, compatibility testing, performance testing, end-to-end testing, or penetration testing.

Furthermore, it’s important that resilience tests are performed by independent parties. While vulnerability assessments are usually done on a continuous basis, threat-driven penetration tests can be caried out every three years. Maintaining operational resilience is crucial for organizations, and these efforts align with the requirements outlined in the EU Cyber Resilience Act.

7. Foster information sharing across borders

As the 2025 deadline approaches, financial institutions face a pivotal moment.  They must align their cybersecurity strategies with DORA’s mandates while maneuvering through a complex network of European cybersecurity regulations, including the Critical Entities Resilience Act, focusing on physical security, the Cyber Resilience Act, addressing connected devices, and the Cybersecurity Act, governing ICT products, processes, and services. In anticipation of ongoing regulatory adjustments, organizations must move beyond initial compliance efforts, remaining vigilant as the Joint European Authorities will release multiple sets of criteria expected to offer additional clarity and specificity on the operational resilience requirements outlined in DORA.

Looking ahead, financial institutions must see cybersecurity compliance as an integral part to their business strategy and risk management, not just a checklist item. Collaborating with experts, engaging in sector dialogues, and monitoring emerging threats are crucial. Taking proactive steps will ensure compliance with regulations like DORA, enhancing resilience in the digital landscape and safeguarding assets and reputation.

Capgemini guides organizations within financial services in their journey towards DORA compliance. Interested to know more?

Redefining customer interactions with advanced personalization

In the ever-evolving landscape of customer service, contact centers are more than mere operational hubs; they are experience hubs that excel in service and create exceptional moments. As the primary interface between businesses and customers, each interaction within such a center holds the power to profoundly influence a customer’s opinion.

In response to the escalating customer expectations, businesses are strategically adopting advanced personalization strategies and technologies that cover end-to-end customer journeys. This is especially important for financial institutions, where contact centers play a significant role for customers, demanding interactions that are not just satisfactory but deeply personalized. As per Capgemini’s latest World Retail Banking Report, 45% of contact center agents’ time is spent on operational activities resulting in a dip in customer interactions and engagement.

In this blog, we will explore the essential elements of effective and improved customer interaction and personalization in contact centers, focusing on the indispensable role of data, creation of personas, and the application of behavioral science.

1. Convergence of marketing and service: Orchestrating seamless journeys

Effective personalization in banking contact centers begins by mapping the customer journey. Here, the right convergence of marketing and service is essential. Shifting from short-term transactions to long-term relationships requires breaking down organizational silos – the primary culprit in unsuccessful digital transformations. This provides an opportunity for marketing to deepen customer relationships and foster loyalty. Such approach allows organizations to build cohesive experience and journeys.

Integrating marketing and service reshapes organizational structures, fostering collaboration and introducing new leadership roles like Chief Customer Officer. Cultural and technological shifts, along with leadership commitment and investment in CRM systems as well as analytics platforms, are essential. For example, a large European Financial Services Firm successfully organized its marketing and contact center teams under a larger customer experience department ensuring an integrated CX and streamlined process.

2. The vital role of data in personalization success

Data, often described as the new currency, plays a pivotal role in the personalization journey. Contact centers house a trove of valuable customer insights that can be harnessed to understand customers at a deeper level. Consider, for instance, a scenario where a bank’s contact center utilizes transactional history to tailor investment advice, aligning recommendations with each client’s unique goals and risk tolerance. This personalized approach not only fosters trust but also cultivates long-term loyalty.

Leveraging data analytics and artificial intelligence empowers agents, ensuring personalized interactions and tailored strategies for diverse customer segments. Building on customized service, top brands are using conversation intelligence solutions to improve the digital to call experience. As per Forrester, 82% of marketers agree that insights from inbound calls and call experiences reveal costly blind spots in their organizations.

3. Creating personas for enhanced personalization

Forward-thinking organizations create personalized experiences at scale by designing and orchestrating omni-channel journeys. This enhances customer experiences, reduces costs, and generates sales opportunities. Segmenting customers into personas based on behaviors, preferences, demographics, journey stage etc., enables tailored interactions, refining experiences through hyper-personalization. In line with this trend, Capgemini’s latest World Retail Banking Report underscores the growing preference for chatbots and self-service options among a significant quarter of millennials and gen Z, indicating a shifting landscape where such technologies are increasingly embraced as preferred modes of interaction. Consider this scenario: Two customers call a contact center seeking assistance. Alex, a digital native, is quickly diverted to self-service options tailored to their needs. Meanwhile Emily, who prefers speaking to a representative, remains in the Interactive Voice Response (IVR) – an automated phone system directing the call based on voice or keypad input. This highlights the importance of recognizing and catering to the diverse preferences of customers, ensuring a seamless and personalized experience that supports individual needs.

4. Applying behavioral science in contact centers for optimal interactions

Behavioral science is defined as the study of human behavior, which involves applying scientific methods to comprehend, predict, and influence behavior across diverse contexts, including contact centers. It provides insights that help you anticipate problems and design solutions by understanding likely human behaviors.

Technology can be leveraged to observe customer behaviors and provide timely guidance to agents. This application of behavioral science seeks to grasp the underlying motivations of individuals and optimize service interactions accordingly. Integrating behavioral science principles allows organizations to improve the efficacy of service interactions and ensure precisely addressing of customer needs.

Barclays exemplifies this approach by applying behavioral science techniques in its contact center operations. By harnessing behavioral insights, the bank segments customers based on their communication preferences, personalizes interactions across various channels, and identifies opportunities for proactive outreach and support.

5. Personalization for agents’ development

In today’s landscape, personalization extends beyond enhancing customer experiences to encompass the development and support of contact center agents. According to Capgemini’s latest World Retail Banking Report, a staggering 62% of Tier 1 bank contact center agents and 40% of Tier 2 bank agents express concerns over inadequate chatbot capabilities affecting their productivity and efficiency. This underscores the critical importance of equipping agents with robust tools and resources to meet evolving customer expectations.

With the advent of the quality assurance (QA) era and the widespread adoption of AI-powered solutions in every interaction, organizations now can discern what works effectively and what does not for each agent. This abundance of data serves as a foundation for creating personalized training plans tailored to the specific needs of individual agents, thereby ensuring continuous improvement and optimal performance across the board.

On-demand training can be provided through dynamic delivery models and tailored to learning styles and needs. Additionally, automating simpler interactions enables organizations to redirect agents’ attention towards more intricate tasks, ultimately saving time and enhancing overall efficiency. This contributes significantly to agent development. Gartner projects that 10% of agent interactions will be automated by 2026, an increase from an estimated 1.6% of interactions today that are automated using AI.

By optimizing training efforts and investing in agents, organizations can achieve the maximum return on investment, creating a workforce that consistently delivers exceptional customer experiences. In the rapidly evolving landscape of customer service, personalization in contact centers is no longer a luxury but a strategic necessity.

The process of screening natural persons, legal entities, and transactions applies in a variety of AML contexts—with two key ones being sanctions and adverse media screening. It’s integral to a satisfactory AML program, but rife with errors, delays, improper decisioning, inadequate recordkeeping, and outsized costs, and increasingly difficult for financial institutions to manage properly. These institutions are struggling to bring more efficiencies and better risk management to their screening systems, understanding that throwing human resources at the problem is not the answer.

The benefits of innovation

The benefits of employing modern artificial intelligence (AI)-based tools to enhance the sanctions and adverse media screening processes are compelling. AI can greatly assist by retrieving relevant information, executing researches, analyzing data, making decisions on alerts (with a hand off to a human analyst in complex situations), and generating and publishing detailed reports and an audit trail. This brings greater speed, accuracy, and comprehensiveness, as well as reduced false positives.  Also, with AI-based technology, each screening process can readily be transformed into a continuous one in which the financial institution is notified in real-time when a relevant new regulatory requirement must be assessed or a development of interest about a customer occurs, enabling immediate action to reduce AML risk exposure.

“In effect,” notes Manish Chopra, Capgemini Executive Vice President—Global Risk and FCC Business Leader, “implementing an automated screening analyst is like hiring a bevy of employees who are immediately productive, work at high speed, never get tired, and are available 24/7. This represents a cost-effective alternative to offshoring, outsourcing, or temporary labor.”

Human productivity also is a problem that AI can address. The traditional performance of screening reviews and alerts is an arduous process that, over time, can wear down and demoralize human analysts. “Enabling individuals to collaborate with an AI-based system,” explains Art Mueller, WorkFusion Vice President—Financial Crime, Banking, and Financial Service, “frees them from performing menial tasks such as copying, pasting, and data gathering and review, allowing them to work on higher-value investigations and, thus, be used in a more productive, strategic way.” 

Addressing implementation considerations

Introducing an AI system into a legacy process can be done relatively quickly and efficiently, and on a reasonable budget, but it must be performed carefully and thoughtfully. Starting slowly with modest initial goals is often the best approach.

The process of incorporating AI into a transaction monitoring system includes a number of steps:

• Data collection and preparation (including ensuring data cleanliness and structure);
• Model selection;
• Model training and validation;
• Integration of models with existing systems;
• Deployment and testing;
• User training and adoption; and
• Ensuring continued compliance with all applicable laws and regulations.

As with any AI system, a huge consideration is comprehensive, quality data, given that the models rely so heavily on them. Data accessibility, sourcing, quality, consistency, privacy, and security all are critical, along with integrating end-to-end workflows to allow for a seamless stream of information.

Overcoming implementation challenges

There are various inherent challenges posed by AI-based tools that should be kept in mind when implementing them, including resistance to change, skills gaps, legacy system compatibility, data accessibility, scalability, security concerns, and user training and adoption. 

Useful implementation principles are that the AI tools should be able to support multiple lines of business, live with other technology investments, and change only what needs to be changed. A financial institution should test the new technology as much as it needs, but ideally avoid parallel runs in production, which add cost and concerns. Also of great importance is that every relevant area across the lines of business—such as Risk, Compliance, IT, Operations, Independent Audit, and HR—buy into and assist in the transformation process.

As with any significant change, senior management buy-in is vital factor for the success of innovation initiatives. This involves the active participation, endorsement, and ongoing support of top-level executives (including resource allocation) aligning the entire organization toward the innovation implementation goal.

Obtaining regulatory acceptance

Given the highly regulated nature of the financial industry, another key consideration is ensuring regulatory acceptance. “The good news,” notes Joe Robinson, Co-founder & CEO of Hummingbird, “is that financial regulators globally have, in recent years, embraced AI-driven innovation as an appropriate if not necessary development in addressing financial crime.”

In this regard, there are important aspects to regulatory acceptance that also must be taken into account. These include ensuring explainability, transparency, accountability, and proper model risk and data management. Also important is a comprehensive, up-to-date set of metrics that can readily be shown an examiner or supervisor is critical (e.g., timeliness of alert decisioning, rate of false positives, AI determinations overturned by human supervisors) to demonstrating the effective functioning of the AI system. Moreover, a thorough set of documentation should be maintained of the AI model’s development, training process, and deployment, which should be readily accessible to regulators, auditors, and other stakeholders.

In conclusion

In sum, the benefits of employing modern AI-based tools to enhance the sanctions and adverse media screening processes are compelling, and have been embraced by financial industry regulators. However, implementing these tools presents certain challenges that require careful planning, internal support, collaboration between IT and business units, attention to regulatory imperatives, and a strategic approach to ensure a smooth integration.

Later this month, Capgemini, Hummingbird and WorkFusion will be hosting the executive panel discussion Screening in 2024: challenges and opportunities, in NYC. We look forward to connecting with clients, partners and business leaders to explore how technology-driven screening is key in an environment of emerging threats and institutional challenges.

Utilities can be creative in leveraging smart meters to get closer to customers

AMI 2.0 is an exciting opportunity because it makes possible the type of customer benefits that can transition utilities from retail business models to more customer-centric service models.

The demographics in Canada are changing. This shift means utilities can no longer afford to treat every customer the same. For example, some people are willing to call their local utility but others do not want to interact with a call center, so utilities need to offer many customer channels, including online.

Much more than time-of-day

Another way in which the customer experience can be updated is to utilize more of the features of smart meters. These are typically viewed as time-of-use devices, because that was their original goal. Pricing differs based on the time of day: households that are hyper-focused on saving money can do their laundry late at night while others cannot be bothered and just pay the higher rate. This static model works well for people with a stable, predictable lifestyle that involves regular workdays, but it does not serve people on shift work or who are home during the day. They need flexibility, so utilities need to look beyond time-of-day.

AMI 2.0 gives utilities the opportunity to get more personal when interacting with customers. For example, people appreciate receiving notifications from phone providers when they get close to data thresholds, and electricity providers could offer the same type of real-time tracking or alerts. Or they could offer pay-as-you-go programs which could eliminate the need for security deposits. The possibilities are expansive.

Smart meters can also function as two-way communication channels. For example, some state utilities  can control customer thermostats, with permission. They can regulate the settings on air conditioners, for example, so a customer who agrees to let the utility make their home two degrees warmer receives a suitable incentive, and the utility gets more control over the grid, especially when it is very hot.

This communication network can deliver a better customer experience in multiple ways:

• Daily energy use information via an online portal or app
• Notification on energy use before the bill arrives
• Faster new customer connections instead of sending a crew onsite
• Remote meter reading and fewer estimated bills
• Rate options to empower customers.

The goal is to provide detail on energy consumption so consumers can see where they are using electricity. Understanding how much electricity a hairdryer or toaster oven consumes can demystify usage.

Proactive communications

AMI can also help utilities restore power after an outage because they can better monitor premises. Determining if 100 or 1,000 homes are affected helps mobilize the right number of field crews. It can also help pinpoint where the problem happened. And proactive notifications keep customers informed even when the lights are out.

AMI can engage with every customer, but utilities need to understand all the options and possibilities. Capgemini is a trusted partner of multiple utility companies and we are working with them to manage data and find the value. AMI 2.0 provides big data, and the key is to make sense of the numbers and turn that information into something that appeals to customers.

The magic really happens when utilities combine AMI 2.0 data with call-center data. That can answer questions like what customers ask about, what they search for on the website, and how many EV drivers there are, and perhaps even supply sociodemographic information. Utilities can determine the programs that deliver the most value to them and their customers if they are tactical and thoughtful about leveraging data.

No one option or program will solve all customer-relations challenges. Instead, utilities can use AMI 2.0 to understand customers, improve the experience, get creative, and think outside of the usual box. Start looking at how AMI 2.0 can boost loyalty and increase satisfaction. With more visibility and data, the possibilities and use cases can be endless.

Climate Week’s panel discussion on sustainability, facilitated by Capgemini and ServiceNow last fall in New York City, focused on the regulatory, social, ethical, and business factors creating the imperative for organizations to act on environmental, social and governance (ESG) practices.

Coming out of that discussion, I wrote about investing in sustainability and the need for enterprise-wide and tech-based planning. This planning unlocks data and its insights that are absolute in the development of long-term strategies and measurable goals that mitigate climate change and support overall ESG actions.  

Now that we’ve established the context and the critical need for organizations to act on ESG practices, I want to turn to the practical steps organizations can take to move forward on their ESG journeys.  

Four stages of ESG maturity 

Of course, organizations begin their journeys at different levels of ESG maturity. At Climate Week, ServiceNow’s Senior Advisory Solution Architect, Risk Practice, Geeta Jhamb, identified the four stages of ESG maturity into which most organizations typically fall: 

• Ad hoc: Conducting some simple sustainability initiatives but in an unstructured way without reporting mechanisms. 
• Disclosure-driven: Reacting to the regulatory requirements driving the most immediate pressure, the most common stage.  
• Governed: Tracking projects against compliance benchmarks and communicating to the workforce within a formal, budgeted program. 
• Integrated: Incorporating ESG into their culture, values, and the business decisions that flow from them; this is the most mature stage.  

To move toward integration, sustainability must be a higher, board-level priority. While ESG is frequently the responsibility of a designated team, its success depends on demonstrating its relevance and importance across the organization, including to those who own the data that drives the program.  

Pillars of the ESG journey 

Capgemini and ServiceNow collaborate with one another and with mutual clients to help drive understanding of ESG’s criticality to their entire organizations. Our process encompasses these three phases:  

• Measure: We begin with both qualitative and quantitative assessments, encouraging our clients to conduct an honest self-assessment by asking themselves questions, such as, “Where are we as a company? What is our true mission?”  
• Plan: From this measurement, we ask our clients to think about what they want to achieve. As Geeta Jhamb noted in our discussion, they may want to go big, aim high or fix business processes that are broken to make their ESG programs more succinct and more consumable for their end users. We let our clients know that proper resourcing, whatever their plan, is essential to achieving objectives that make sense from both ESG and business perspectives.  
• Act: We know that our clients can only achieve their objectives if everyone is on board. To motivate, they can rely on a push strategy, externally imposed with key performance indicators (KPIs) and service level agreements (SLAs), to which service providers, such as Capgemini, must adhere. Or they can employ a pull strategy where motivation is intrinsic with people performing because they want to, not just because they have to. We’ve experienced that a combination of push and pull motivational strategies is the most powerful. 

So that’s the joint mindset our Capgemini and ServiceNow people bring with them when they join with a client organization as part of a project team. Yes, they have KPIs and SLAs to meet, but even more importantly, they have an inherent respect for and commitment to sustainability because of their training. These twin drivers foster a set of behaviors that connect with and spread to employees of the client organization. In short, what starts as an investment for the service provider can become a widespread and innate commitment to sustainability. 

Making it work 

If success in sustainability means achieving measurable targets, it also means you need a data strategy, which is why IT and ESG teams need to be empowered to work together. We believe this data maturity level underpins the business that companies must consider as they take the ESG journey.   

In our New York talk, Geeta made the point that progress depends on technology and on platforms to securely integrate data from other sources and create cross-functional workflows so that data owners can themselves provide input for robust audibility. Comprehensive technology platforms could be a game-changer in ESG. One example she noted: harmonizing frameworks across the organization would normalize working methods across teams, making it easier to meet regulatory requirements.  

Maria Hart asked the panel if we thought there is any intersection between ESG success and business success. Most panel participants agreed not only about the intersection of ESG and business success. Increasingly, we see them as interdependent. Leveraging data across the enterprise ecosystem contributes as much to net zero as it does to profitability. 

Working together for a sustainable future 

Teamwork is key across the board: not just across enterprise functions, but partner ecosystems and even entire industries as well. At Capgemini, collaboration is enabling us to meet our commitment to help clients save 10 million tons of CO₂ and to reach net zero by 2040. 

Here’s an example I gave during our discussion. Our work with an energy client included a move to cloud that saved hundreds of tons of CO₂ per year. Invigorated by this success, we worked together to find other opportunities, including substantial CO₂ savings in streamlining procurement processes. By working in partnership to build a workable roadmap and making best use of IT, we are now collectively committed to saving one million tons of CO₂. That’s 10% of our global commitment from just one client relationship and its extended ecosystem. 

Such results exemplify the power of collaboration in achieving large-scale sustainability goals. The challenge of sustainability is too great for any of us to tackle alone. It’s a team sport. Only by working together can we help clients get the futures they want. 

Join us in creating a sustainable future for all 

Achieving ESG goals requires a collaborative effort. By working together across departments, partners, and industries, organizations can leverage data and technology to create a more sustainable future. 

Ready to unlock your organization’s ESG potential? Explore how our ServiceNow partnership can help you develop a winning ESG program.  

Capgemini at ServiceNow Knowledge 2024

Earmarked as the most intelligent Knowledge yet, ServiceNow’s flagship event, Knowledge 2024 will bring together 15,000 brilliant minds from across the globe in the heart of Las Vegas. There you’ll discover new ways to drive digital transformation, unlock new levels of efficiency and innovation by putting AI to work for your people.

Productivity, meet experience. As a ServiceNow partner and a Platinum sponsor, we’ll be bringing to you experiences, demos and sessions to help you explore how to drive organizational success through seamless, people-centric approaches.

Visit us at booth 5208 to reimagine your employee journey.

Racing the clock: strategies to meeting T+1 in securities lending

What is securities lending?

Generally, securities lending is the act of one party (the lender) lending securities to another party (the borrower). The borrower needs to provide collateral to secure the loan, and this can be done through cash or other securities. Additionally, the borrower is expected to pay a fee. The length of time is arranged between the parties through a middleman, and after a period, the security is returned to the lender.

What does this mean for you?

Beginning May 2024 in North America, securities traders will need to complete the process of transferring ownership faster than before – within one day after the trade (T+1) instead of two (T+2). This has raised concerns about the increased risk involved as companies fear they will not be able to deliver the sold securities within the tight deadline.

The consequences of a trade not going through on time involve more than just the two main parties involved. The two biggest areas of concern are:

• Market liquidity – To comply with T+1, lenders may keep their stocks rather than lend, decreasing liquidity.
• Increased costs – Lenders may require higher collaterals to offset risk, discouraging borrowers while driving up costs. The shorter deadlines also put risk on borrowers. If they fail to return stocks promptly, a lender may make a claim against them resulting in legal fees and possibly fines.

The risk of recalls

Another concern is being able to identify a recall in time to satisfy the delivery of a sale by the T+1 deadline. However, it’s not unusual for a recall to fall outside a contractual agreement, and the lender may not know when they’ll get their assets back.

Beyond the difficulties of such a quick turnaround, this also creates the need for a system that works around the clock, particularly for institutions that work outside of the US. In reality, recall notices may not even be seen until the following workday, requiring heightened services to meet the deadline.

This also increases the risk of overdrafts due to loans not being returned on time.

What questions should you be asking?

There are important questions to consider as you build a strategy for T+1:

1. What are your positions for each security and where are they held?
2. Which securities are currently loaned out?
3. Which securities have been recalled?
4. Which securities are needed to fulfill delivery requirements, and where can you source these securities if unavailable?
5. If a security you sold is being used as collateral and needs changing, what is the plan?

With these questions in mind, certain factors should be considered to gauge readiness to support securities lending to meet T+1’s deadline.

Keep accurate records

Consistently maintain records from custodians or agents about positions and settlements. You should also ensure you reconcile accounts accurately and on time. This helps you know your positions as well as any failed settlements quickly, ensuring that all loans are settled promptly and in accordance with your inventory.

Leverage automation and other leading-tech solutions

T+1 means less time to handle recalls and reallocations and makes micromanagement impossible. Automation is crucial. Implementing this into your recall process saves you valuable time and lowers risk. If recall isn’t automated, it’s time to make a technological assessment.

Assess risk

A new perspective on borrowing and lending risk assessment is vital. Lenders may need more collateral to manage the increased risk. On the other hand, borrowers might need a broader operational review to ensure market trades settle on the value date. Keeping these factors in mind will help manage risk.

We know T+1

Our experience can guide you in assessing your readiness to support securities lending for T+1. If you haven’t looked at your overall post-trade operations yet, our experienced experts can assist you with your T+1 program. We can help with tasks like data analysis and reaching out to other parties involved.

In today’s competitive banking landscape, customers demand personalized experiences tailored to individual needs and preferences. However, the current generic interactions and misalignment with financial goals leads to dissatisfaction with the current state of customization offered by banks. A report by Blend found that 65% of consumers wanted banks to make it easier to shop and find tailored products, and 72% felt product offers to be more valuable when tailored to their personal needs. This illustrates the gap between customer expectations for personalized services and the reality of banking experiences.

Generative AI is a key tool that has emerged to drive personalization. Customers love it, with the Capgemini Research Institute’s 2023 survey revealing that 73% of 8500+ consumers trusted content written by it and 53% have faith in generative AI-assisted financial advice. With the scramble to develop such solutions for enhanced business outcomes, business leaders should know how this technology can drive personalization for their businesses.

Content creation at scale

Generative AI revolutionizes media creation, infusing personalization into every aspect from text to images. This approach ensures that tailored content resonates uniquely with each consumer, be it product descriptions, blogs, or video scripts. Replacing labor-intensive manual efforts, generative AI streamlines the process, delivering messaging and visuals based on individual preferences, demographics, and past behaviors.

AI algorithms swiftly analyze real-time consumer interactions and transactions, ensuring content remains relevant and effective across platforms. In contact centers, Generative AI addresses common queries, reducing agent costs and resolution times, elevating overall customer experience.

CRI’s survey highlights this approach’s significance, with 29% of executives extensively leveraging generative AI for content creation and another 26% embracing it to some extent. Ally Financial, a US all-digital bank, used generative AI to reduce marketers’ production time by up to 2-3 weeks, achieving average time savings of 34% with prompt accuracy of 81% (indicating users generally received relevant content output).

Hyper-personalized recommendations

Generative AI utilizes customer data to analyze past interactions, transactions, and preferences, generating tailored product and service recommendations. This fosters trust, and contributes to loyalty, retention, and revenue growth through repeat purchases and brand advocacy.

Detailed customer profiles enable targeted recommendations, such as credit cards and insurance, based on individual preferences. Real-time analysis suggests agent responses and identifies cross-selling opportunities, catering to specific consumer needs.

According to Capgemini’s research, 60% of executives use generative AI extensively for customized customer experiences, and 57% for creating personalized customer and brand avatars. Mastercard’s Dynamic Yield developed Shopping Muse, leveraging colloquial language to deliver customized product recommendations and predict shopping intents based on the past purchase data and behavior, enhancing shoppers’ discovery experience.

Dynamic and engaging interactions

Generative AI chatbots mimic human responses, providing round-the-clock support, engaging in natural conversations, and adapting to user mood or intent. This enhances service perception, offering personalized advice and support, ultimately boosting engagement and loyalty.

In a Capgemini survey, 83% of organizations deemed chatbots relevant for automating customer service and improving knowledge management. Wells Fargo’s chatbot, Fargo, manages 20 million interactions, offering banking services and financial advice via voice and text, powered by the Tachyon AI platform.

Tailored marketing and advertising

Generative AI transforms marketing with targeted campaigns, replacing generic ads with personalized content across different media formats. Historical data informs tailored messaging, optimizing clickthrough and conversion rates. Financial institutions leverage generative AI for personalized content, driving loyalty and engagement with instant cross-selling and up-selling offers.

Consumers embrace generative AI, with 62% comfortable with its use in marketing, per Capgemini Research Institute survey. For example, Square integrates this technology into its business software, streamlining email marketing with personalized content and supporting blog copywriting for SEO improvement and resource savings.