Riding the Wave: NextGen Technology Trends Set to Revolutionize Banking in 2024
By Puja Sharma
“Realizing the full potential of the banking sector demands a fundamental shift. Despite having extensive data, our current utilization is a mere fraction, hovering around 10%. Transforming the financial landscape requires harnessing this wealth of information through technology, shifting from a traditional product-oriented approach to adopting a customer-centric mindset,” stated Krishnha Sheshan, Head of Payments, Digital Banking, RBL Bank. This insight was shared during the Cedar-IBSi Digital & Core Banking Summit within the panel discussion titled “Embracing NextGen Technologies,” moderated by the Managing Editor of IBS Intelligence, Robin Amlôt.
Delving into the groundbreaking impact of AI, blockchain, data analytics, cybersecurity, and digital payment innovations on India’s banking sector, here are the technology trends to anticipate in 2024:
Underutilized Data Resources:
Banks currently utilize a mere 10% of their extensive data resources. Realizing full potential requires a shift away from a traditional product-oriented approach. Embracing a more data-centric strategy is vital to unlocking the wealth of information within their repositories, paving the way for more informed decision-making and innovative financial solutions.
Operational Challenges and Flexibility:
The financial sector grapples with challenges stemming from a fragmented 360-degree view caused by operational silos. Overcoming these obstacles necessitates a strategic focus on enhancing flexibility, reducing rigidity, and driving automation. The industry can foster a more cohesive and streamlined operational landscape by addressing these issues head-on.
Central Bank Digital Currencies (CBDCs) are set to reshape the financial landscape, with the Reserve Bank of India (RBI) actively pursuing seamless integration. The objective is to provide users with an experience as fluid and intuitive as traditional cash transactions.
Security Challenges in AI Adoption:
Navigating the future of finance requires addressing critical security challenges associated with AI adoption. A strategic approach to utilizing blockchain tech emerges as a crucial instrument in effectively tackling these challenges, providing a robust framework for safeguarding financial systems against emerging threats.
Achieving sustained success in the dynamic financial landscape demands a dual focus on customer acquisition. A customer-centric approach involving a deep understanding of intricate customer needs is vital to this success. This strategy must continually resonate with the evolving dynamics of the financial industry, ensuring that customer relationships remain adaptive and resilient in the face of change.
“Empowering banking through data is not just about products; it’s crafting personalized journeys that intuitively anticipate individual needs. Technology becomes the silent enabler, seamlessly mapping the evolving relationship between banks and customers. In this era, AI and analytics redefine banking as a dynamic and personalized experience when fused with broader insights. Data-driven innovation must shape the very essence of customer-centric banking,” said Ritesh Varma, Vice President – Business Consulting, Newgen Software.
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