Since the mid-2000s, the banking sector has undergone a radical transformation. This transformation includes the rise of FinTech, crypto-assets, blockchain, and programmable web3, as well as the recent boom in artificial intelligence (AI). It is estimated that AI could contribute up to 4 trillion dollars to global GDP growth in the coming years.
In financial services, technologies such as AI and machine learning are being used extensively, from the back office to the front office. These tools are replacing human judgment in financial decisions, assessing risk in payments, providing conversational interfaces in mobile banking apps, and much more.
The question is: how can banks keep pace with these advances, stay ahead of the curve, and take advantage of the opportunities that arise? Here are ten key steps to be successful in this new technological revolution.
Know your competitors
Today, there are over 1.3 billion addresses on networks like Ethereum, Polygon and Solana, the equivalent of the number of bank accounts. Thousands of developers are working on open source code to enhance financial software. FinTech and neobanks are competing with big names like Visa and MasterCard and gaining ground. With $4 billion in capital flowing into the FinTech sector every month, the decentralization of finance is progressing rapidly. Traditional banks must adapt to avoid being left behind.
Entering into partnerships
This change cannot be managed alone. Transformation requires collaboration, and banks need to find the right technology partners to stay competitive. Large technology companies also rely on financial companies to provide integrated banking solutions, such as the Apple Card, developed with Goldman Sachs or Amazon, which uses capital funding to finance their business.
Explore new platforms
In addition to having the right partner, it is crucial to have a suitable platform that improves visibility and understanding. The digital experience is crucial.
Satisfy customers
For users, these advances are beneficial. They can now manage payments, banking and investments through a single, easy-to-use app or website. If a bank doesn't offer these integrated services, customers will look for alternatives.
Diving deep into the data
The key to actionable insights and offering relevant digital experiences lies in the data. To achieve outstanding results with AI, you need to manage large amounts of data. Understanding what is "normal" helps avoid pitfalls and optimize performance.
Invest in intelligent monitoring
By partnering with leading AI-powered monitoring providers like Riverbed and implementing monitoring platforms, banks can set standards for "normality'," uncover employee and customer experiences, and make improvements based on real data.
Automate and automate
The best platforms on the market integrate AI and machine learning tools that automate improvements, reduce complexity, resolve service issues, and fix errors. This increases productivity and optimizes applications to provide users with a unique experience.
Review resources and make intelligent decisions
Knowing the resources available and how they are actually being used allows you to make smarter and more efficient decisions. From sizing hardware to managing software licenses, optimizing IT resources can have a significant impact on investments.
Follow current and future trends
With data monitoring, AI can be used not only to see what's happening today but also to predict future trends and determine how best to catch them. For example, if customers regularly use a banking app on payday, this pattern can be predicted, and additional bandwidth can be allocated towards the end of the month to ensure smooth network performance.
Protect the budget and the planet
Investing in new technology can be costly, but these investments bring savings and reduce the carbon footprint. By following the previous steps, i.e., using data to optimize resources and predict trends, you can improve ROI while using fewer resources.
Riverbed's AI-driven observability solutions are transforming the digital finance landscape by providing secure and comprehensive user experiences across all channels, integrating with other technologies, and incorporating AI and machine learning to offer proactive remediation, reduce costs, and minimize environmental impact.
