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

The 5 techs

Famous fintech though contributor & author of fintech snark tank Ron Shevlin recently published article on 5 hottest banking tech for 2020 on his Forb column. His company surveyed 300 banking senior executives on what technology they will be spending their budget on, and the top 5 are:

  1. Video collaboration / marketing
  2. P2P payments
  3. Cloud
  4. API

What does it mean

What’s interesting for me is that despite the hype, this is a realistic view of where banks are in their digital transformation journey. From the list above, it’s apparent that banks still got ways to go. This trend is corroborated in Jim Marous’s latest digital banking report. Jim found that most of the banks are just beginning (46%) or in the mid (37%) process of digital transformation (DT).

  1. one quarter has made progress on digital on-boarding and digital lending.

Conclusion

What’s happening I assume there are probably a lot of banks just waiting on the sidelines to get a more clear view of the impact of the new technologies. Also, as Jim has noticed in his report, banks are making small incremental changes when they needed to make bigger and fundamental changes. For a fintech enthusiasts like me, I would love to see that, but unfortunately won’t anytime soon. Most of the banks are public companies, and need to report their financial performance by quarters. The benefits of digital transformation will take much longer to realize. In addition, it doesn’t seem the banks felt the urgency for such dramatic changes. I think for such change, banks need to feel their existence is being disrupted, and we are truly not there yet. Digital banks hardly made a dent to banks top and bottom lines. Perhaps the proliferation of financial services offering by all kinds of company will? We shall see.

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