We asked four titans of the banking industry for their thoughts on the most prominent trends driving the banking space and why they're so important
Banking has changed considerably in the last decade and our expectations of what a bank is, and where we should find it, are drastically different. It’s indisputable that technology has been the driving force behind this change. With that in mind, we asked four senior industry executives to give us their view on the technology that is most influencing banking.
Hybrid cloud
By Prakash Pattni, MD Financial Services Digital Transformation at IBM
The fintech industry has experienced rapid global expansion as banks seek to modernise in the midst of evolving laws and regulations. As we look to 2023, many banks will partner with agile Fintechs and turn to the cloud to develop new products and services to keep up with today’s digitally savvy customers.
To unleash the full potential of these collaborations there will be challenges to overcome. For established banks it will be essential that fintech partners do not introduce systemic risk to their supply chains – especially as regulatory oversight grows. To help navigate the changing landscape, adopting a hybrid cloud approach, including the use of industry-specific clouds with built-in security and compliance controls, can support the secure modernisation the banking industry craves. In the year ahead, fintech should partner with established technology providers to explore the adoption of industry cloud platforms that help remove barriers within partnerships which restrict agile innovation.
One area of growing interest to financial regulators is ESG reporting. Next year, I see fintech incorporating ESG reporting into their business models to help banking clients evaluate and reduce their environmental impact. A hybrid cloud architecture has an important role to play by enabling companies to tap into other capabilities, such as software powered by AI, to draw on multiple data sources and provide real-time tracking for things like energy usage and carbon emissions.
By Alex Clere
February 08, 2023