Future of Digital Bank: Blockchain, AI, API

With the development of iOT 4.0, digital transformation is an inevitable trend of the banking and finance industry in the next 10 years on a global scale. The future of banking technology is driven by consumers, especially Gen Z, who see technology as something that enhances their lives. 

API

A common trend in banking technology is using an application programming interface (API) to make proprietary data available to anyone who has the consumer’s permission to access it.

APIs could be used to enable a bank’s mobile app to pull down customer account information. Fintechs have also used API technology to enable their businesses to work, and their success is encouraging competitors to develop their own APIs.

AI

Additionally, Business Insider Intelligence reported that 48% of banking executives believe new technologies like blockchain and artificial intelligence (AI) will have the greatest impact on banking through 2020. According to Business Insider Intelligence, banks are exploring blockchain technology in hopes of streamlining processes and cutting costs.

Consumers can already see AI being used by most banks through chatbots in the front office. Banks are using AI to smooth customer identification and authentication, while also mimicking live employees through chatbots and voice assistants.

Blockchain

Most banks are exploring the use of blockchain technology in order to streamline processes and cut costs. However, they are also looking to leverage additional advantages, including increased competitiveness with fintechs, and the ability to use the technology to create new business models. 

Banks are starting to narrow their focus, and are increasingly honing in on tangible use cases for blockchain technology that solve real problems faced by their businesses. 

Regulators are taking an increased interest in blockchain technology, and they’re working alongside major banks to develop regulatory frameworks. 

Blockchain-based solutions will start to emerge in different areas of financial services. The most successful solutions will solve specific problems for banks and attract a large enough network to create widespread benefits.