Top 3 Emerging Technologies for Banks in 2023

By ganerationlmn 4 Min Read
Top 3 Emerging Technologies for Banks in 2023

Here are the top 3 recommended technologies for banks to consider and start implementing as early as 2023. Introduced and accelerated new concepts of remote working. Social distancing, and regulatory restrictions, with banks and their customers bearing the consequences of these measures to this day. Inevitably, serving customers without the need for physical presence in branches has become a crucial requirement for banks. Both from customer demand and regulatory compliance perspectives.

One of the main keywords of last year was “digital transformation”. A strategy whose implementation was quickly accelerated. As a result of the urgent need to move to fully digital platforms that allow banks to continue offering their services remotely. But what are the emerging technologies that are shaping digital transformation, and will continue to do so in the year 2023 and beyond?

Cloud computing

The first emerging technology on banks’ radars is Cloud Computing. Physical access limitations induced by global pandemic lockdowns were not just limited to banks’ customers. But also to their human resources, including information technology experts and administrators needed to operate and maintain banks’ data centers. These limitations have resulted in partial or total blackouts in many data centers since the start of the pandemic.

To overcome these limitations, banks need to seriously consider moving their crucial customer-related services to a cloud computing platform. As a result, regulators also need to create regulatory frameworks to accelerate this movement.

In our last blog, It’s a digital fact! the infographic shows that more than 50% of banking services are being provided in one or more digital forms that are direct candidates for being transformed into cloud computing-based platforms.

APIs (Application Programming Interface)

In another blog by ProgressSoft’s chief architect. How Open APIs Revolutionize Banking, Ali Qoul discusses the crucial need to adopt a set of open APIs that simplify integration with third-party systems and solutions in order to accelerate the introduction of banking services and finances across a broader customer base.

By moving to cloud computing platforms, providing APIs that cover different endpoints. Not only accelerates time to market but also opens new doors to introduce new innovative solutions that attract potential remote customers and retain existing ones.

Artificial intelligence and machine learning (AI/ML)

With remotely managed customers, there is a need to adequately identify new customers when they show their intention to subscribe to one or more of the services proposed by banks through diligent Know Your Customer (KYC) procedures. The use of AI/ML-based solutions not only serves the initial registration seen in ProgressSoft’s recently launched Know Your Digital Customer. But also serves value-added purposes such as Automatic Signature Verification.

During a remote opt-in and onboarding session, deep machine learning technologies can be used to fully identify an anonymous person through facial recognition, live presence detection, and document authenticity validation. Additionally, responding to customer calls typically requires a dedicated call center that operates 24 hours a day. Therefore. Intelligent AI-based Chatbots are now essential to enable a fully digital banking platform that can not only respond to customer calls but also send queries to designated managers and third-party providers responsible for analysis and delivery. Of solutions as soon as a ticket is registered.

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