Technologies Shaping the Future

of Banking

Presented By: -
Akshita Jain
Anhad Saini
Surbhi Gandhi
 Introduction
• As opposed to technology taking a secondary
position, supporting only the processing of
transactions, future technologies will be more
customer-centric and efficient, and provide
more targeted, secure and intelligent
solutions. With technology as the driving force
in the future, organizations will be able to
redefine themselves to be more competitive
and responsive to marketplace needs.
 Introduction
• Atos developed a very helpful Global Banking
Technology Radar that provides a perspective
on the technologies anticipated over the next
five years, the business impact of the
technologies and the timing of integration. We
provided a short description of each
technology for better understanding.
 1. Hybrid Cloud

According to IBM, cloud computing has quickly

become mainstream in banking, with most banks
searching for the optimal mix of traditional IT,
public and private clouds. Over time, more and
more banks are moving to an enterprise-wide
hybrid cloud strategy.
 1. Hybrid Cloud

“With hybrid cloud, banks have the flexibility and

benefits of both private and public cloud, while
addressing data security, governance and
compliance,” states IBM. The benefits of a hybrid
cloud include reduced costs, improved operational
efficiency and enhanced innovation.
 1. Hybrid Cloud

It was found that at least 75% of bankers said their

most successful cloud initiatives had already
achieved expansion into new industries, creation
of new revenue streams, and expansion of their
product/services portfolio.
2. API (Application program Interface)
Platforms
The combination of open platform banking and open
APIs will change the entire banking ecosystem as we
know it, from the products and services offered, to
the delivery channels used and underlying
partnerships that will shape innovation and customer
experiences in the future. With public APIs, customers
will have more options to interact with their bank.
In this scenario, the bank will serve as a platform, on top of
which third-party companies can build their own
applications using the bank’s data. Looking forward, the
business model of retail banks, where checking accounts
are used as a ‘hook’ to attract customers for more
profitable lending products, may become unsustainable.

• Example: - Providing on screen widgets having the

information of account balance, FDs, Loan amount etc.
 3. Robotic Process Automation (RPA)
Across financial services, robotic process automation (RPA) has
helped banks and credit unions accelerate growth by executing
pre-programmed rules across a range of structured and
unstructured data. This intelligent automation gives processes the
power to learn from prior decisions and data patterns to make
decisions by themselves – reducing the cost of administrative and
regulatory processes by at least 50% while improving quality and
speed.
3. Robotic Process Automation (RPA)
Robotic process automation in banking also simplifies
compliance by keeping detailed logs of automated
processes, automatically generating the reports an
auditor needs to see, and eliminating human error.
Since it’s intuitive and easy to re-configure software
robots at any time, tweaking processes to fit new or
updated regulations is never difficult.
4. Instant Payments
The availability of an instant payments platform
offers banks an enticing opportunity to achieve
the transaction speed consumers expect of their
banking experience and increase the customer
satisfaction. With instant payments, more
transactions will be made digitally instead of in
cash, which means that payments will become
less expensive and more user friendly. Finally, by
expanding and combining instant capabilities with
solutions in e- and m-commerce banks and credit
unions could develop an innovative portfolio of
new services.
5. Artificial Intelligence (AI)
• Heightened interest in AI has occurred because of
both capabilities and business needs.
• The explosive growth of structured and
unstructured data, availability of new
technologies such as cloud computing and
machine learning algorithms, rising pressures
brought by new competition, increased
regulation and heightened consumer
expectations have created a ‘perfect storm’ for
the expanded use of artificial intelligence in
financial services.
The benefits of AI in banks and credit unions are
widespread, reaching back office operations,
compliance, customer experience, product
delivery, risk management and marketing to
name a few. Suddenly, banking organizations
can work with large histories of data for every
decision made.
For those firms not adopting AI, challenges such
as fear of failure, siloes data sets and regulatory
compliance are cited. Two of the biggest
challenges that remain in banking is the absence
of people experienced in data collection,
analysis and application and the existence
of data silos. The good news is that many data
firms now have the capability to do a
‘workaround’, collecting data from across the
organization.
6. Blockchain
• Experts say blockchain could have a transformational
impact on the banking industry. Many see banks
adopting blockchain technology to improve efficiency,
cost-effectiveness, and security throughout the entire
spectrum of financial services.
• Some financial institutions have already started testing
the use of blockchain for inter-bank transfers, with
others testing in the space of payments, fraud
reduction, know your customer, and loan processing.
Many see tremendous benefits to streamlining and
automating processes through smart contracts. In the
end, regulators will need to create clear guidelines for
banks using blockchain technology.
• Example: - Money transfer from government account to
poor people by BJP govern.
7. Prescriptive Security
• The nature and incidence of cyber risk is
unique and changing without notice, meaning
that typical approaches to risk management
may not be appropriate. The potential sources
of cyber threats and the attack footprint are
impossible to eliminate, requiring
organizations to be nimble in their approach
to cyber security.
• More and more, advanced analytics, real-time
monitoring, AI and other tools are used to
detect potential threats and stop them before
they strike. In the short-term, digital
disruption may result in new risks and
increased instability in the financial system,
but in the long term, prescriptive security may
improve its effectiveness
8. Augmented and Virtual Reality
• If personal user experiences can be enhanced
by augmented reality (AR) or virtual reality
(VR), then it can also be institutionalized by
banks to revolutionize the banking industry.
The possibilities are are still in early
embryonic stages, with testing being done
worldwide.
• For instance, the Commonwealth Bank of
Australia targets bank customers looking to buy
or sell a home. Augmented reality and rich data
are used to provide historical information about
property sales, price tendencies, current listings,
and properties that have been sold in the area.
This insight helps individuals make smart sale and
purchase decisions.
• According to analysts, augmented reality and
virtual reality could be utilized to give bank
customers autonomy in terms of at-home
banking. Hybrid bank branches could also come
into existence.
9. Quantum Computing
• According to FedTech, quantum computing harnesses the laws of
quantum mechanics to carry out complex data operations. While
traditional computers use bits (represented as either binary 1s or
0s), quantum computing harnesses quantum bits, known as qubits.
These can be read as 1s, 0s, or both, providing exponential
computing power over traditional computers by creating shortcuts
in the computing process.
• Quantum computing represents a major leap forward in computing
power, surpassing the potential of the cloud or blockchain.
However, it will likely be years before it is widely used in business
applications, due to many stability and security concerns. Despite
this extended timeline, firms like JPMorgan and Barclays are part of
a group investigating quantum computing potential in conjunction
with IBM.
10. Smart Machines
• The impact of smart machines (smart vision systems, virtual
customer assistants, virtual personal assistants, smart
advisors, other natural-language processing technologies,
etc.) will have on financial institutions during the next few
years is beginning to take shape.
• From applications for Amazon’s Alexa to bank developed
virtual assistants like Bank of America’s Erica, the future of
smart machines acting as digital concierges on behalf of
consumers is upon us. The banks and credit unions that
invest in better digital engagement will have more
profitable relationships with customers. At the end of the
day, customers will continue to self-select the bank that
provides the least amount of friction and the most relevant
support and guidance.