Skip to main content

Banking Industry Embraces Emerging Technology

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

Industry experts offer predictions on how AI will evolve and impact technology and business in 2025. Part 5 covers the infrastructure and hardware supporting AI ...

Industry experts offer predictions on how AI will evolve and impact technology and business in 2025. Part 4 covers advancements in AI technology ...

Industry experts offer predictions on how AI will evolve and impact technology and business in 2025. Part 3 covers AI's impact on employees and their roles ...

Industry experts offer predictions on how AI will evolve and impact technology and business in 2025. Part 2 covers the challenges presented by AI, as well as solutions to those problems ...

In the final part of APMdigest's 2025 Predictions Series, industry experts offer predictions on how AI will evolve and impact technology and business in 2025 ...

E-commerce is set to skyrocket with a 9% rise over the next few years ... To thrive in this competitive environment, retailers must identify digital resilience as their top priority. In a world where savvy shoppers expect 24/7 access to online deals and experiences, any unexpected downtime to digital services can lead to significant financial losses, damage to brand reputation, abandoned carts with designer shoes, and additional issues ...

Efficiency is a highly-desirable objective in business ... We're seeing this scenario play out in enterprises around the world as they continue to struggle with infrastructures and remote work models with an eye toward operational efficiencies. In contrast to that goal, a recent Broadcom survey of global IT and network professionals found widespread adoption of these strategies is making the network more complex and hampering observability, leading to uptime, performance and security issues. Let's look more closely at these challenges ...

Image
Broadcom

The 2025 Catchpoint SRE Report dives into the forces transforming the SRE landscape, exploring both the challenges and opportunities ahead. Let's break down the key findings and what they mean for SRE professionals and the businesses relying on them ...

Image
Catchpoint

The pressure on IT teams has never been greater. As data environments grow increasingly complex, resource shortages are emerging as a major obstacle for IT leaders striving to meet the demands of modern infrastructure management ... According to DataStrike's newly released 2025 Data Infrastructure Survey Report, more than half (54%) of IT leaders cite resource limitations as a top challenge, highlighting a growing trend toward outsourcing as a solution ...

Image
Datastrike

Gartner revealed its top strategic predictions for 2025 and beyond. Gartner's top predictions explore how generative AI (GenAI) is affecting areas where most would assume only humans can have lasting impact ...

Banking Industry Embraces Emerging Technology

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

Industry experts offer predictions on how AI will evolve and impact technology and business in 2025. Part 5 covers the infrastructure and hardware supporting AI ...

Industry experts offer predictions on how AI will evolve and impact technology and business in 2025. Part 4 covers advancements in AI technology ...

Industry experts offer predictions on how AI will evolve and impact technology and business in 2025. Part 3 covers AI's impact on employees and their roles ...

Industry experts offer predictions on how AI will evolve and impact technology and business in 2025. Part 2 covers the challenges presented by AI, as well as solutions to those problems ...

In the final part of APMdigest's 2025 Predictions Series, industry experts offer predictions on how AI will evolve and impact technology and business in 2025 ...

E-commerce is set to skyrocket with a 9% rise over the next few years ... To thrive in this competitive environment, retailers must identify digital resilience as their top priority. In a world where savvy shoppers expect 24/7 access to online deals and experiences, any unexpected downtime to digital services can lead to significant financial losses, damage to brand reputation, abandoned carts with designer shoes, and additional issues ...

Efficiency is a highly-desirable objective in business ... We're seeing this scenario play out in enterprises around the world as they continue to struggle with infrastructures and remote work models with an eye toward operational efficiencies. In contrast to that goal, a recent Broadcom survey of global IT and network professionals found widespread adoption of these strategies is making the network more complex and hampering observability, leading to uptime, performance and security issues. Let's look more closely at these challenges ...

Image
Broadcom

The 2025 Catchpoint SRE Report dives into the forces transforming the SRE landscape, exploring both the challenges and opportunities ahead. Let's break down the key findings and what they mean for SRE professionals and the businesses relying on them ...

Image
Catchpoint

The pressure on IT teams has never been greater. As data environments grow increasingly complex, resource shortages are emerging as a major obstacle for IT leaders striving to meet the demands of modern infrastructure management ... According to DataStrike's newly released 2025 Data Infrastructure Survey Report, more than half (54%) of IT leaders cite resource limitations as a top challenge, highlighting a growing trend toward outsourcing as a solution ...

Image
Datastrike

Gartner revealed its top strategic predictions for 2025 and beyond. Gartner's top predictions explore how generative AI (GenAI) is affecting areas where most would assume only humans can have lasting impact ...