4 Emerging Techs That Are Driving Transformation in Banking


Over the last ten years, the banking industry has seen significant changes. Now, the expectations of what a bank is and where it should be located are quite different.  

Technology has unquestionably been the main driver of this transformation. In light of this, here are a few opinions from senior industry executives on emerging techs in banking and how they are influencing the banking sector. 

ALSO READ: How Closing the HR-Finance Gap Can Scale Up Workforce Planning 

1. Hybrid Cloud 

By Prakash Pattni, MD of IBM’s Financial Services Digital Transformation 

Emerging techs in banking has rapidly expanded globally as banks attempt to adapt to the changing rules and regulations. Looking ahead to 2023, a lot of banks will collaborate with innovative fintech and use the cloud to create new goods and services that will keep up with the demands of today’s tech-savvy clients. 

There will be obstacles before these collaborations can reach their full potential. So, it is crucial for established banks that their fintech partners don’t add systemic risk to their supply chains. It is especially essential when regulatory supervision increases.  

Adopting a hybrid cloud strategy–which uses industry-specific clouds with built-in security and compliance controls–can secure banking modernization. In the coming year, fintech should collaborate with reputable tech suppliers to investigate the adoption of cloud platforms. That will aid in removing constraints on rapid innovation within partnerships. 

2. Composable Banking 

By Prema Varadhan, Temenos’ Chief Product and Technology Officer  

Banks require a platform for agility, scale, and innovation to survive and prosper. So, what kind of platform should bank employ? A platform that is cloud-native, data-driven, modular. However, it should also be expandable and comprehensible. 

The focus of the emerging techs in banking is to develop and deliver new products to the market. It can be made possible by composability.  

Composability divides services into distinct capabilities. It promotes flexibility, speed, and independence while integrating with outside service networks. Thus, expanding choice and fostering innovation. 

For a better understanding of composability’s importance, banks should study some of the most prosperous B2B technology firms. Consider Salesforce for CRM or ServiceNow for workflow management. They are perfect examples of how businesses have taken a certain function and developed a full suite of software capabilities that are available through a single platform. 

3. Data, Privacy & AI 

By Adam Lieberman, Finastra’s Head of AI and Machine Learning  

The banking sector is developing exponentially, from the use of chatbots to ML-powered risk and decision models. Besides, data stockpiles of financial institutions are also expanding at the same rate. The most severe control is imposed on financial data since it contains sensitive and individually identifiable information.  

However, handling tremendous data is a responsibility. This stifles innovation because banks must work together and share information to tackle difficult financial situations. 

Thanks to emerging tech in banking as banks now have a set of privacy-enhancing tools (PETs) to collaborate at scale. It can help them solve urgent financial challenges jointly without the need for physical dataset sharing, relocating data, or manual partner agreements.  

With the help of PETs, they can work together to answer questions and create data models that can be accessed in a decentralized manner for remote data research and analysis. 

4. Coreless architecture 

By Abhishek Bhattacharya, Publicis Sapient ‘s Group Vice-President 

Contemporary cloud-based core banking systems (CBS) are now facilitating coreless architectures. It will spur innovation and revolutionize the customer experience in the banking industry. 

The crucial elements, like accounts, transactions, and product specifications, are found in the core in a coreless design. However, all other components are located outside of the core and linked through APIs. This is hardly comparable to legacy systems, which performed a wide variety of presumably onerous tasks. 


Emerging technologies in banking are helping banks automate processes, improve security and transparency, and enhance customer experience. They are key to the transformation and modernization of the financial services industry. 

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