Banking Technology Trends 2021

Justin Smith, CIOReview APAC | Thursday, May 27, 2021

Justin Smith, CIOReview APAC

In 2021, banks can expect banks to discard on-premise thinking in favor of a cloud-first strategy, transitioning from a private cloud to a virtual private cloud on public cloud infrastructure, then to a hyper-cloud finally to a poly-cloud world.

FREMONT, CA: If there were any concerns about the pace at which banks could scale digital transformation, the pandemic dispelled them all. As a result, the 2021 banking trends forecast continues the 2020 theme of scaling digital transformation. They are divided into business and technology trends as below.

Scaling A Shift Toward Public Cloud

The pandemic undermined the conventional advantages of operated data centers by restricting staff access and requiring operations to be conducted remotely. This pushed companies to the cloud, which now had all of the advantages–scalability, mobility, cost-effectiveness, and so on. In 2021, banks can expect banks to discard on-premise thinking in favor of a cloud-first strategy, transitioning from a private cloud to a virtual private cloud on public cloud infrastructure, then to a hyper-cloud finally to a poly-cloud world. Another advantage of moving to this area is having access to a large developer group for external innovation.

Scaling API-Led Possibilities

Banks have expanded their use of APIs this year for reasons other than regulatory compliance. During the pandemic, consumers flocked to digital providers, exposing conventional banks' weaknesses in customer service, engagement, and creativity. The banks realized that when developing new apps, they needed to think API-first so that they could absorb external innovations and enable third-party developers to create innovations on top of their (the banks') services. In 2021, one can expect them to continue on this road with domain/business/function-oriented APIs.

Scaling Value with Data and Artificial Intelligence (AI)

Though AI has been mentioned in the last two or three year-end predictions, 2021 will be the year when banks move from experimenting with AI to generate real business value. This is the first time they can derive value from AI in the front, center, and back-office by reducing fraud, increasing performance and productivity, refining customer behavior awareness, and targeting goods and promotions to the right customers. In 2021, banks will expand AI solutions beyond RPA use cases to boost their operations, increase revenue, and reduce costs.

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