Consumers still crave digital services. Where are the biggest opportunities for companies?

Five big digital adoption leaders ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

TODAY'S NEWS. TOMORROW'S INSIGHTS. A daily newsletter from McKinsey & Company   Edited by Alexandra Mondalek   Associate Editor, New York On digital growth In the news • Open for business. Open banking, the idea that third-party developers can build applications and services around financial institutions using APIs, could help open up new opportunities for digital consumers in Africa. The practice, which is already applied frequently across the tech industry, could offer more flexibility in contactless payments across borders, leading to greater financial inclusion across more rural areas on the continent. The worldwide open-banking market generated $13.9 billion in revenue in 2020. [Quartz] • 'DeFi-ing' the odds. Decentralized finance (DeFi) is a financial-technology infrastructure that allows people to engage in financial services without the traditional barriers to entry (such as applying for a loan through a brick-and-mortar bank). It could also be the key to helping the more than one billion people around the world who don't have access to financial services but do have access to a mobile phone realize their own financial mobility. [WEF] With large swaths of people still digitally underserved, we believe that digital adoption has not yet hit 50% of its full potential. On McKinsey.com • Five surging sectors. Banking, telecommunications, insurance, entertainment, and utilities have all seen the biggest increase in digital adoption in the past year, according to a new McKinsey survey. Indeed, 90% of consumers in these sectors are digital adopters. But McKinsey's Neira Hajro, senior partner Kate Smaje, and coauthors explain that even in strong sectors with high rates of digital adoption, there's still room for growth. By digitizing more complex transactions, such as mortgage applications, companies can further grow revenue. • Looking for connection. Within the telecommunications sector, organizations have significantly more opportunity in emerging markets than they do in developed countries. Consumers in these markets are twice as likely than those in Europe and North America to say they would increase spending on things such as better connectivity and entertainment. See where else businesses can improve consumers' digital experiences—such as in product selection and payment experiences. Explore opportunities in digital Was this forwarded to you? Sign up here. Or send us feedback—we'd love to hear from you. Follow our thinking This email contains information about McKinsey's research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to the On Point newsletter. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007