Banking’s aspiration to integrate itself into the lives of customers cannot be accomplished in a day. But with modern technologies, that end state of a truly digital bank underpinning every service is starting to look a lot less like of a distant dream.
In 2018, banks will look to partner with technology vendors that can see them through their transformation journey with proven experience and capability across the five layers of the digital architecture - information architecture that supports hyper-personalization anytime, anywhere on any device; componentized application architecture with embedded analytics to self-heal and automate; technology architecture that leverages open source components and cloud; security architecture which is adaptive and pervasive; and integration architecture for seamless, standard-based open API environment.
Saddled with significant legacy systems, banks are looking to modernize and scale smaller components of the architecture progressively, as opposed to a big bang modernization. Progressive modernization has been a common conversation in banking and IT circles, but now banks are looking to advance their transformation journey to reach their reference digital architecture with agile and scalable approaches such as adoption of microservices based design.
The reference digital architecture will serve as the go-to guide, irrespective of the starting point in the journey or the approach. As banks look to move forward towards their reference digital architecture, they need to be cognizant towards key technology trends that will impact the reference architecture. Our coverage of technology trends this year looks at such five key technology trends.
In 2018, banks will have a more nuanced understanding of Artificial Intelligence and its components, and the technology will find application beyond the already established use cases. Cloud will begin to be seen as a business enabler and the apprehension around public cloud will begin to wither. Blockchain based ecosystems will emerge for areas such as trade finance, remittances, digital identity management, clearing and settlement, among others. The proliferation of APIs will further fuel the sharing economy. And the number of transactions will only multiply in a world of connected devices unlocking value from a host of new sources of data.