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June 23, 2024

Digital duo: Mastercard & Visa top IMD Future Readiness with innovation

By Eileen Mencias

Payment giants Mastercard and Visa led financial services companies in the IMD 2024 Future Readiness Report, which ranked 88 of the largest companies globally in finance, automotive, and consumer packaged goods sectors for resilience.

“Future readiness is an ongoing journey,” said Howard Yu, Director of the IMD Center for Future Readiness. “A drop in the Future Readiness Indicator doesn’t necessarily imply stagnation. However, if a company fails to improve at a sufficient pace, it risks being overtaken by competitors.”

The leading companies prioritize innovation to meet evolving consumer expectations. In financial services, innovation and adaptability are critical differentiators.

Mastercard, followed closely by Visa, showcases agile business models, a focus on digital payments, and investments in AI-powered services and products, ensuring future resilience.

DBS Bank and JP Morgan Chase followed suit with substantial investments in digital transformation and cloud-native infrastructure.

HSBC saw a four-place climb this year, emphasizing growth drivers like wealth management while maintaining cost discipline.

On the other hand, Coinbase, Block, and Paypal, disruptive forces challenging traditional players, advanced by embracing emerging technologies to enhance services and drive efficiency.

“Fintech startups and digital-only banks have compelled incumbents to innovate or risk obsolescence,” noted Yu. “This has prompted established players to respond through partnerships, acquisitions, and intensified internal innovation, enabling big players like Mastercard, Visa, JPMorgan Chase, DBS, and HSBC to democratize services previously exclusive to the fintech realm.”