Thursday, 05 March 2020 | By John Mallios, banking solutions director, Profile Software
This year, technology will continue to be the main driver of disruption in the banking industry through the evolution of machine learning (ML), blockchain, quantum computing etc. as digital transformation is evolving the way banking is done, according to Deloitte’s study “2020 banking and capital markets outlook”.
Most banks still do not experience the full potential of advanced technologies and “2020 could be the year of build and migrate” in the cloud. Core banking in the cloud is less risky, reduces time-to-market, with future-proof migration capabilities. AI wider adoption is to become the key focus in 2020, as banks will evolve from a product-centered to a customer-first ecosystem, with data sharing and new data being added to the existing systems. Banks are to review their data architecture making the most out of data-sharing while keeping privacy intact and fortifying their own cybersecurity defences.
In the digital transformation process, companies need to learn how to use technology to develop new customer insights and deliver contextual offerings. In addition, improvements in technology and methodology aim at delivering increased ROI for the next decade. New digital propositions will need to be offered to clients.
Evolving client expectations drive banks to use new technologies and develop their business models. “Influenced by what they see in their personal lives as consumers of digitally enabled services, more corporate customers have begun to expect similar high-quality, tailored, seamless services.” Superior customer experience and seamless connectivity will become the norm where real-time advice could develop to become a competitive advantage for the bank.
Open banking (PSD2) is to be realised in most regions, which will also accelerate banks’ digital transformation efforts and the creation of new business models. Using an AI-powered, digitally assisted-service offering is a way to enhance communication and client relationships.
* This article was published on bobsguide.com (05.03.2020)