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Online & Mobile Banking

Banks to embrace comprehensive automation in 2019

Wednesday 30 January 2019 | 12:43 PM CET

In 2019, banks will embrace open source and comprehensive automation as architectural principles, to achieve new levels of agility and resilience, says Infosys Finacle.

Infosys Finacle, part of EdgeVerve Systems, has released its annual banking trends forecast for the year 2019, revealing twelve business and technology trends that will influence banking over the next twelve months and beyond.

The report observes that banks across the world have begun their digital transformation journeys, and in 2019, the focus will be on how to accelerate this journey, with Open Banking and API-led business models playing a key role. 

Some key highlights include:

  • Accelerating architectural evolution – Banks will embrace principles of deep business focus, true agnosticism, pervasive analytics, open source, and comprehensive automation as architectural principles, to achieve new levels of agility, scalability, and resilience.

  • AI in the bank – Benefits of AI in existing use-cases of customer services and fraud management will scale up, and the technology will find greater application in compliance, precision marketing, and even talent management.

  • Blockchain – Blockchain use cases in banking will expand, and large networks will become crucial for meaningful value.

  • Steady advance towards public cloud - Public cloud will emerge as the preferred choice of tier 2 and tier 3 banks looking to expand operations. API-driven business initiatives and new digital channels will also drive adoption.

  • Accelerating connected commerce – Many banks will begin offering basic banking on smart voice-assistants. IoT adoption will accelerate in the trade finance and lease financing business.

  • Increasing interactive dimensions – Mixed reality (MR) starts becoming a reality for banks. Banks will pilot use cases such as virtual branches, and mobile applications augmented with MR.

Among key business trends for banking in 2019, the report cites:

  • Transition towards platform business model will accelerate. The traditional vertically-integrated pipeline business model where banks manufacture and sell their own products is giving way to marketplace-driven banking.

  • Cyber-Defense vs. Hacker Intelligence – Banks will enhance their security controls and make significant investments in security talent, tools and expertise to combat the rising threat from evolved hacking techniques.

  • Data privacy and ethics – As banks navigate the dual challenge of sharing data for customer-centric innovation mandated by regulations, and protecting customer interest, they will find themselves stepping up for a new role, the role of facilitating secure exchange of customer data with third party ecosystems.

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