New Tech Trends Every Bank Must Use
Banks are using technology-enabled risk management to manage the impact of the pandemic and offer better service to customers.
FREMONT, CA : In terms of overall disruption and unexpected turmoil, the year 2020 has created a niche for itself in recent history. But, other than its status as one of history's darkest years, 2020 still held a few positive surprises.
The growing dependence on technology paid off, and it proved to be one of the most potent allies in the struggle to keep companies running and productivity levels high. Despite the best efforts, several companies suffered significant losses and succumbed to the pressure created by the pandemic.
Even before the pandemic, the banking system dealt with structural issues such as growing levels of non-performing assets (NPAs) and the imminent global slowdown. The risks that lingered on the horizon were already real and concerning.
Banks are increasingly relying on technology to improve their risk monitoring and management abilities in the face of increasing instability. Some of these emerging technologies and their effect on every area of banking and enterprise risk management will be reimagined in 2021.
Key technology trends driving banking and financial services in 2021
Blockchain to safeguard data sanctity:
In the finance sector, new trends are coming up that prefer the use of blockchain in banking. Blockchain's decentralized infrastructure guarantees data accuracy, making it easier for banks to identify fraud and mitigate risks. Blockchain will be a gamechanger in the foreseeable future, with the ability to decrease operating costs while enhancing efficiencies.
Open banking gains in popularity:
Banks expect dramatic changes in the open banking space as consumers discover ways to transact according to their preferences and convenience. API banking is now accelerating transaction times, lowering go-to-market cycles, and enhancing decision-making and responsiveness. Open banking would ultimately contribute to data democratization and socioeconomic advancement.
Exploring new horizons with the cloud:
There are several versatile choices for banks that are still on the fence regarding cloud adoption. Hybrid cloud, for example, combines the convenience of lower Capex with the security of on-premise deployment. With improved cloud security, banks can consider public cloud ecosystems as suitable long-term alternatives.
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