HOW INNOVATION IS IMPACTING RETAIL
The world’s connected, digitalized marketplaces are maturing, unlocking a proliferation of marketing innovations, more seamless omnichannel user experiences and more deeply integrated services.
Data is the key to harnessing that innovation in the retail space. The 2023 Global Innovation Report gathers trends based on a survey of 351 senior retail executives. As you consider your next tech investments, these strategies may
help you turn innovation opportunities into real-world advantages.
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of executives struggle with data management
About FIS
FIS is a global leader in financial services technology, with a focus on retail and institutional banking, payments, asset and wealth management, risk and compliance, consulting, and outsourcing solutions. Through the depth and breadth of our solutions portfolio, global capabilities and domain expertise, FIS serves more than 20,000 clients in over 130 countries. Headquartered in Jacksonville, Fla., FIS employs more than 55,000 people worldwide and holds leadership positions in payment processing, financial software and banking solutions. Providing software, services and outsourcing of the technology that empowers the financial world, FIS is a Fortune 500 company and is a member of Standard & Poor’s 500® Index. For more information about FIS, visit www.fisglobal.com.
A three step guide on how to monetize data and achieve digital transformation
Over the next 12 months, at least 70% of retail executives surveyed expect a major or moderate impact from four key trends – the metaverse, cryptocurrency, embedded finance and buy now, pay later (BNPL). These aren’t passing fads. They’re areas of innovation that you need to understand and adapt to sooner rather than later.
Finding the best route
of executives struggle with data management
of executives struggle with data management
Let’s talk
Download the report to explore the full findings. Then, let’s connect to map out your next steps.
ARE YOU EMBRACING INNOVATION?
©2023 FIS FIS and the FIS logo are trademarks or registered trademarks of FIS or its subsidiaries in the U.S. and/or other countries. Other parties’ marks are the property of their respective owners.2370844
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twitter.com/fisglobal
www.fisglobal.com
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THE IMPACT OF INNOVATION IS WIDESPREAD AND LONG-TERM
84%
81%
74%
77%
84%
83%
86%
84%
The Metaverse Cryptocurrencies Embedded Finance Buy Now Pay Later (BNPL)
12 months
3 years
Those who expect innovation to impact their business foresee a range of effects. The four trends have the potential to upend business models, posing real challenges for retailers. In terms of strengthening relationships with customers and driving revenue, BNPL could have the greatest impact. However, the metaverse shows strong potential for strengthening customer relationships as well.
Innovation disrupts the retail status quo
Q: What impact do you expect the following trends to have on your organization over the next 12 months?
In the next three years?
Metaverse
Cryptocurrency
Embedded finance
BNPL
180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
23%
14%
9%
22%
23%
25%
25%
12%
9%
12%
13%
23%
11%
29%
27%
12%
15%
15%
31%
17%
14%
12%
30%
17%
30%
17%
14%
19%
11%
27%
18%
24%
Change sales and/or distribution models
Reduce risk
Increase operating costs
Strengthen customer relationships
Drive revenue
Increase risk
Increase competition
Decrease operating costs
Let’s look at the retail executives who believe innovation will have a major impact on their operations over the next 12 months.
When asked how they are responding, three strategies come to the fore: adopting new technology, augmenting skills and increasing budgets.
The opportunity is clear. What about the strategy?
Q: You indicated that these trends would have some degree of impact on your organization, but what specific effects will they have on your organization?
Metaverse
Cryptocurrency
Embedded finance
BNPL
7%
14%
22%
22%
23%
20%
23%
28%
22%
20%
35%
17%
19%
18%
36%
28%
48%
14%
39%
12%
Build new technology
Hire people to add skills/knowledge
Seek partners to add skills/knowledge
Launch new products/services
Increase technology budget
You’re facing more pressure and uncertainty than ever. But those who make the right choices from the plethora of new technologies, innovations and trends at their disposal will dominate the markets of the future.
Only FIS has the technology and expertise to navigate the entire retail ecosystem. Our unmatched global reach and experience can give you the confidence to expand into new areas.
There’s no time to waste
Q: You indicated that the following trends would have a major impact on your organization over the next 12 months.
What activities is your organization currently involved with to respond to these trends?
* All data is based on a survey of 351 worldwide retail firms. The survey was conducted by Longitude Partners on FIS’ behalf between July and September 2022.
12 months
3 years
The Metaverse
Cryptocurrencies (including stablecoins)
Tokenized assets
(e.g., linked to shares, bonds, commodities, etc excludes NFTs)
Embedded Finance
BNPL
90%
85%
80%
75%
70%
65%
81%
78%
74%
77%
72%
79%
84%
86%
83%
84%
Drive revenue
Change sales and/or distribution models
Increase
risk
Reduce
risk
Increase competition
Increase operating costs
Decrease operating costs
Strengthen customer relationships
35
30
25
20
15
10
05
0
12%
25%
25%
23%
22%
9%
14%
23%
12%
27%
29%
11%
23%
13%
12%
9%
17%
30%
12%
14%
17%
31%
15%
15%
24%
18%
27%
11%
19%
14%
17%
30%
The Metaverse
Cryptocurrencies
Embedded Finance
BNPL
Build new technology
Hire people
to add skills/knowledge
Seek partners
to add skills/knowledge
Launch new products/services
Increase
R&D budget
50
45
40
35
30
25
20
15
10
05
0
The Metaverse
Cryptocurrencies
Embedded Finance
23%
22%
22%
14%
7%
36%
18%
19%
17%
17%
20%
22%
28%
23%
20%
Let’s talk
FIS is a leading provider of technology solutions for merchants, banks and capital markets firms globally. Our more than 55,000 people are dedicated to advancing the way the world pays, banks and invests by applying our scale, deep expertise and data-driven insights. We help our clients use technology in innovative ways to solve business-critical challenges and deliver superior experiences for their customers. Headquartered in Jacksonville, Florida, FIS is a Fortune 500® company and is a member of Standard & Poor’s 500® Index.
About FIS
Click on each key trend to see the results
Click on each key trend to see the results
12%
39%
14%
48%
28%
BNPL
Increase R&D budget
Metaverse
Crypto
Embedded Finance
BNPL
39
%
10
%
17
%
13
%
Over the next 12 months, at least 70% of retail executives surveyed expect a major or moderate impact from four key trends – the metaverse, cryptocurrency, embedded finance and buy now, pay later (BNPL). These aren’t passing fads. They’re areas of innovation that you need to understand and adapt to sooner rather than later.
THE IMPACT OF INNOVATION IS WIDESPREAD AND LONG-TERM
Those who expect innovation to impact their business foresee a range of effects. The four trends have the potential to upend business models, posing real challenges for retailers. In terms of strengthening relationships with customers and driving revenue, BNPL could have the greatest impact. However, the metaverse shows strong potential for strengthening customer relationships as well.
INNOVATION DISRUPTS THE RETAIL STATUS QUO
39%
Increase technology budget
10%
35%
13%
Let’s look at the retail executives who believe innovation will have a major impact on their operations over the next 12 months.
When asked how they are responding, three strategies come to the fore: adopting new technology, augmenting skills and increasing budgets.
THE OPPORTUNITY IS CLEAR. WHAT ABOUT THE STRATEGY?
Click on each key trend to see the results
Drive revenue
Change sales and/or distribution models
Increase
risk
Reduce
risk
Increase competition
Increase operating costs
Decrease operating costs
Strengthen customer relationships
35
30
25
20
15
10
05
0
12%
25%
25%
23%
22%
9%
14%
23%
12%
27%
29%
11%
23%
13%
12%
9%
17%
30%
12%
14%
17%
31%
15%
15%
24%
18%
27%
11%
19%
14%
17%
30%
The Metaverse
Cryptocurrencies
Embedded Finance
BNPL
You’re facing more pressure and uncertainty than ever. But those who make the right choices from the plethora of new technologies, innovations and trends at their disposal will dominate the markets of the future.
Only FIS has the technology and expertise to navigate the entire retail ecosystem. Our unmatched global reach and experience can give you the confidence to expand into new areas.
* All data is based on a survey of 351 worldwide retail firms. The survey was conducted by Longitude Partners on FIS’ behalf between July and September 2022.
THERE’S NO TIME TO WASTE
Download the report to explore the full findings. Then, let’s connect to map out your next steps.
Let’s talk
ARE YOU EMBRACING INNOVATION?