By holistically harnessing the rich capabilities of AI, blockchain, IoT, RPA and open banking, financial institutions can build a more resilient, customer-focused bank that incorporates the virtues of nonbanking rivals. Learn more in Cognizant’s new report on the future of banking.
In the last few years, a wave of digital technologies – social, mobile, analytics and cloud technologies – changed the banking landscape as we know it. Now, a second wave of disruption, or Digital 2.0, is set to drive even more profound change.
This time, the influential technologies include RPA (robotic process automation), AI, IoT instrumentation, blockchain distributed ledger and shared infrastructure, and open banking platforms controlled by APIs. These are the forces that will power the banking industry and reshape how financial institutions (FIs) evolve and operate for the foreseeable future.
As these technologies become commercialized, and demand increases for digitally-enabled services, the “bank of the future” will be characterized by the following traits and roles:
- Orchestrator of personalized customer journeys. FIs will need to create expansive solutions and a rich, curated customer experience across touchpoints.
- Smart aggregator of capabilities across the banking ecosystem. FIs will need to channel capabilities available in the evolving banking ecosystem rather than building offerings from the ground up.
- Provider of platform-based products/services. FIs will use platforms to serve entire business lines, hastening the development process and facilitating improved operational agility and speed of deployment and integration.
- Lean operator supported by front-office to back-office digitization. FIs will need to optimize expenditures in conventional business operations, while freeing budget and human resources to innovate by building smart products and services.
- Intelligent processor of data to expand the business footprint. FIs will create micro-segmented customer groups by combining big data with “thick data” (ethnographic/human behavioral data) to reveal customer intent and needs.
- Agile service unit consuming on-demand offerings. FIs will be pressured to decouple their dependency on “on-premise” systems and shift to software-as-a-service offerings on the cloud that boost agility, improve flexibility, reduce total cost of ownership (TCO) and accelerate provisioning.
Learn more by downloading the report How Digital 2.0 Is Driving Banking’s Next Wave of Change.