banking banks top digital fintech new technology

techsuch May 9, 2021 0 Comments

Top Technology Trends in Banking and Financial ServicesNovember 11, 2016By: Madhusudhan Magadi, SBU Head for BFS America region​Global Banking and Finance Industry is undergoing a major transformation dueto an ​increasing impact of several factors, such as rapidly changing consumerbehavior, increased regulatory expectations, and proliferation of newtechnologies. Technological innovation is set to change the way banks work,and with that in mind, we’re sharing top technology trends in this evolvingsector:Platformication: Instead of competing, banks and fintech firms will partnermore than ever in the coming future, leveraging the banking advantages ofscale, stability, trust, experience in navigating regulations, and the accessto significant capital. Conversely, by leveraging the agility, innovationculture and technological expertise of fintech firms, banks will become thehub of distribution for a broader assortment of solutions.Actionable Data: Insights within the lifecycle of an interaction/transaction.Real-time recommendations / advices based on change in financial profile of acustomer.Introduction of “Opti-channel” Delivery: Beyond “multi-channel” (delivery onmultiple platforms), or “omnichannel” (delivery through all channelssimilarly), an Opti-channel experience delivers solutions, using the best(optimal) channel/s based on the customer’s need and preferred channel. Inother words, rather than offering all channels for a specific solution, bigdata will enable an organization to point the consumer to the channel thatwill provide the best personalized experience.Executing on Innovation: Although innovation is a proven path todifferentiation and competitiveness, the banking industry’s short-term focus,siloed approach to operations, and risk-averse culture, work against thepotential for meaningful advancements.Exploring Advanced Technologies: Blockchain Technology, Robots, ArtificialIntelligence (AI), Biometric Authentication and the Internet of Things (IoT),will be gaining traction in the next 12 months, most panelists believe thedebate can only be around timing.Emergence of New Breed of Banks: The term “challenger bank” is widely used todescribe a banking organization, started from the ground up and built withoutrelying on another banking firm for back office support. While more common inthe UK at this time, this breed of bank could emerge in the US.Mining New Talent: Attracting and retaining top digital talent that cansupport this internal cultural shift will become a priority. According torecent study, “Sixty-one percent of digital organizations see shortages ofdigital skills as a top challenge in digital transformation, and are concernedabout how they can attract and retain top digital talent.”“It is imperative that we find experienced talent to develop disciplines likeDesign Thinking, Lean Start Up and Open Innovation. “These three capabilitiesallow a banking organization to design for the customer, to speed up valuedelivery and to create those customer experiences that we are all aiming for,”adds the study.Responding to Regulatory Changes: New European regulations requiring banks tooffer Application Program Interfaces (APIs) to the open market are set to havean enormous impact. This is both a threat and an opportunity, with many banksnot having worked out a response yet. While there has been no similarregulatory changes in the US that would open the door for fintech firms tocompete more openly here, it will continue to be important for all players tomove in lock step with future changes. Delivering on these opportunities maybe a challenge, however, legacy technology makes it difficult to keep pace.Regulators are increasingly focused on fintech upstarts. Time will decidewhere and how to tighten oversight vs. create a sandbox to protect innovation.Conclusion:Banks will step up their game technology-wise, as they’ll continue to partnerwith fintech startups and they’ll begin rolling out useful mobile wallet appsthat compete with Apple Pay, Samsung Pay and Android Pay. They will also startto pilot and deploy blockchain-style software for payments, trade finance andsecurities settlement. Finally, they will find a mutually agreeable way ofsharing customer data with data aggregators and personal financial managementproviders to deliver a better customer experience.​

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