5 hottest banking techs for 2020 and what does it all mean?

The 5 techs

  1. Digital account opening
  2. Video collaboration / marketing
  3. P2P payments
  4. Cloud
  5. API

So, what’s surprising from the list is that I don’t see any of the hot technologies such as AI, blockchain, or even data analytics, or embedded banking. And the most surprising of it all is probably video. How is video a hot banking technology?

First, the survey is based on 300 mid sized banks in the US. Now, I read that the big 4 (Chase, Citi, Bank of America, Wells Fargo) counts for 25% ~50% of all IT budgets in the banking sector. I believe the role of the innovators will probably start with the larger banks with larger budget. Even the big 4, they are spending most of the budget on legacy systems. Hence even though banks are testing with the sexy new techs, I doubt you will see them on the list, especially for the mid-sized banks.

Second, it’s about replacing legacy system. With the shift to cloud and faster connection speed, simpler and cheaper solution in video conferencing became possible, such as Zoom. Banks are looking to switch to such solution and make it more widely available

The banks plans to apply video technology in two categories: B2B and B2C. In the B2B space, banks are enabling video technology for team collaboration, training, town hall,…, etc. In the B2C space, banks are exploring use cases to apply video to provide better customer experience from customer service, client meetings, or just providing option for customers to use video instead of having to visit the branch.

The belief is that video will help achieve the following: Accelerated decision making; improved productivity; boosted product innovation & improved customer experience.

What does it mean

Jim then digged deeper on those firms that has started or in the process of DT, and found that most of them are still working on basic functions:

  1. one third has digitally transformed new account opening & mobile banking
  2. one quarter has made progress on digital on-boarding and digital lending.

Conclusion

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Ming-Chieh Lee

passion for #fintech #payments #RTP real time payment #Banking as a Service #digital strategy #blockchain