Technology

Bankers are bullish on digital transformation. According to 2018 research by the Boston Consulting Group, 86% of financial institutions agree that digitization will upend the industry and permanently transform the competitive landscape.

Technology has brought us all closer together but at times, makes it more difficult to know exactly with whom we are dealing. Accurate customer identity verification is crucial for financial services, especially when the potential for criminal activities such as money laundering is factored in. Regulators are joining in the challenge by specifying how customers’ identities should be verified online, with the new 5AMLD in Europe lending guidance to banks.

One of the most common perceived concerns when adopting the cloud is the issue of security. For organisations like banks, safeguarding customer data is priority number one, so security is always going to be a primary consideration when implementing new technology.

South Korea’s penchant for technological innovation has not penetrated its financial sector as much as one might expect. Its established banks have been on the conservative side, but that is changing as the government, recognizing its attributes, promotes the growth of the fintech sector, with a particular emphasis on inventive payments and lending providers. Korean consumers are benefiting from the mushrooming choice of cutting-edge financial-services options now at their disposal.

New players driving fresh business models, innovative products and increased adoption of the power of big data affect not only the provision of financial services but the fundamental structures of financial markets. As the tectonic plates shift, banks need to actively seek and embrace new opportunities. For the data economy to thrive, fintechs and bigtechs to provide client choice without affecting financial stability, and for crypto-assets to provide a viable option to traditional assets, regulators must master the art of balancing innovation with regulation.

In recent years, there has been a significant shift in the relationship between banks and the public cloud. While financial institutions were initially reluctant to embrace the technology, they are now amongst the most likely to do so. According the Culture of Innovation Index, recently published by ACI Worldwide and Ovum

Every finance department is facing the same challenge, no matter their size, expertise or industry. New technologies are entering the workplace, changing the way we work and completely upending business models. Nowadays, consumers are ‘always on,’ demanding rapid service and communications. People want to subscribe to products, rather than buy them. Even investors are asking a lot, for example insisting companies precisely predict demand to keep the bottom line lean.

Abandoned transactions are a serious concern for online businesses. However, could the adverse effects of card declines be removed if a consumer was prompted to pay with cash when their card wasn’t accepted?

Vetting and validating new technology vendors often falls to bankers and marketers who may lack the technical expertise needed to thoroughly understand the presented technology, including whether it will provide the best solution for the bank’s specific needs. It’s easy to overlook red flags and grasp at what might seem like a simple solution. 

The game of cat and mouse between the regulators and banks against money launderers has now moved to a new level – all thanks to the emergence of AI and machine learning technologies. AI and machine learning technologies have been around for some time, but have recently started coming into prominence in the world of financial services.