Banks are laying the foundation for the digitization of their businesses and anticipate emerging technologies -- from IoT to biometric authentications and blockchain -- to make a substantial imprint on the industry within five years, according to a recent survey of banking professionals commissioned by VMware.
Results of the survey made one thing very clear -- technology will drive banks' next transformation. The question for financial institutions is no longer whether to invest in technology, but how fast they can invest. And, banks are already laying the groundwork for their digital transformation.
When respondents were asked to describe their bank's core mission over a 3- and 5-year horizon, respondents described the bank's top business focus as "integrating digital and physical channels" and "becoming a digital leader," respectively.
Emerging Technologies Take Center Stage
■ More than 50 percent of banks with $100 billion or more in assets expect to have commercial implementations of the following major categories of emerging technology: mobile apps, APIs/open banking, artificial intelligence (AI), augmented reality, biometric authentications and blockchain -- in the next five years.
■ 78 percent of respondents say that AI voice-based banking has the potential to be transformative in retail banking; about a third say AI voice-based banking could be transformative in commercial banking.
■ 67 percent of respondents from banks with $100 billion of assets or more are currently implementing blockchain technology.
Implementation Challenges
■ Integration of new technologies into existing platforms and upgrading legacy systems are banks' top implementation challenges. In fact, 46 percent of respondents say legacy infrastructure has some impact on their institutions' ability to launch new products.
■ Of bankers who say legacy infrastructure has a high impact on their ability to launch new products about half of respondents say their institutions are currently engaged in data center modernization (52 percent) and cloud computing projects (48 percent) to address the problem.
Impact of Data Center Modernization and Cloud Computing Deployments
■ 81 percent of respondents from banks with $100 billion of assets or more and 68 percent of respondents from banks with $15 billion to $100 billion of assets are currently implementing cloud computing technologies.
■ Among banks currently considering, piloting, or implementing security upgrades, data center modernization programs, cloud computing deployments, and fintech innovations, at least 73 percent expect the initiatives to have a moderate to high impact over the next 12 months.
■ 82 percent expect the initiatives to have a moderate to high impact in five years.
Methodology: In June 2017, VMware commissioned a survey conducted by SourceMedia Research. The online survey yielded responses from 166 respondents, who were drawn from American Banker magazine's opt-in contacts, to understand their current and future outlook for business and technology, and emerging technologies in banking. The survey sample consists of banking professionals at manager levels and above at banks with at least $15 billion in assets.
The Latest
The journey of maturing observability practices for users entails navigating peaks and valleys. Users have clearly witnessed the maturation of their monitoring capabilities, embraced DevOps practices, and adopted cloud and cloud-native technologies. Notwithstanding that, we witness the gradual increase of the Mean Time To Recovery (MTTR) for production issues year over year ...
Optimizing existing use of cloud is the top initiative — for the seventh year in a row, reported by 62% of respondents in the Flexera 2023 State of the Cloud Report ...
Gartner highlighted four trends impacting cloud, data center and edge infrastructure in 2023, as infrastructure and operations teams pivot to support new technologies and ways of working during a year of economic uncertainty ...
Developers need a tool that can be portable and vendor agnostic, given the advent of microservices. It may be clear an issue is occurring; what may not be clear is if it's part of a distributed system or the app itself. Enter OpenTelemetry, commonly referred to as OTel, an open-source framework that provides a standardized way of collecting and exporting telemetry data (logs, metrics, and traces) from cloud-native software ...
As SLOs grow in popularity their usage is becoming more mature. For example, 82% of respondents intend to increase their use of SLOs, and 96% have mapped SLOs directly to their business operations or already have a plan to, according to The State of Service Level Objectives 2023 from Nobl9 ...
Observability has matured beyond its early adopter position and is now foundational for modern enterprises to achieve full visibility into today's complex technology environments, according to The State of Observability 2023, a report released by Splunk in collaboration with Enterprise Strategy Group ...
Before network engineers even begin the automation process, they tend to start with preconceived notions that oftentimes, if acted upon, can hinder the process. To prevent that from happening, it's important to identify and dispel a few common misconceptions currently out there and how networking teams can overcome them. So, let's address the three most common network automation myths ...
Many IT organizations apply AI/ML and AIOps technology across domains, correlating insights from the various layers of IT infrastructure and operations. However, Enterprise Management Associates (EMA) has observed significant interest in applying these AI technologies narrowly to network management, according to a new research report, titled AI-Driven Networks: Leveling Up Network Management with AI/ML and AIOps ...
When it comes to system outages, AIOps solutions with the right foundation can help reduce the blame game so the right teams can spend valuable time restoring the impacted services rather than improving their MTTI score (mean time to innocence). In fact, much of today's innovation around ChatGPT-style algorithms can be used to significantly improve the triage process and user experience ...
Gartner identified the top 10 data and analytics (D&A) trends for 2023 that can guide D&A leaders to create new sources of value by anticipating change and transforming extreme uncertainty into new business opportunities ...
