According to a recent Forrester report, AI, ML, predictive analytics, and 5G are among the technologies in which banks plan to invest heavily within the coming year. With that in mind, below are a few examples of how these and other emerging technologies are driving change within the financial services sector.
Efficiency and Customer Experience Improvements
Nearly 37 percent of the respondents in the Forrester survey who are already using AI point to improved efficiency as one of its chief benefits. Banks are under increased pressure to provide a personalized, engaging customer experience, and this is another area in which AI and ML can assist. Almost 33 percent of those surveyed by Forrester believe ML specifically can lead to improved customer experiences. Check out this previous APEX of Innovation post for specifics on how these technologies can transform the customer experience.
Increased Opportunities for Data-Driven Decision-Making
Real-time and predictive analytics are another hot area within the banking sector, with nearly 89 percent of respondents either in the planning, implementation, or operational phases of deploying these technologies. Here again, leveraging data to provide a more personalized customer experience is a key driver of predictive analytics adoption. In addition, banks are eager for insights that can improve decision-making at every level of the business and also inform data monetization opportunities.
Customer Service Enhancements
Forrester expects that 5G will become a general-purpose technology within the financial services sector as most organizations begin using it for low-latency communications. As adoption increases, nearly 56 percent of respondents believe that customer service will be a significant use case for the technology.
New Use Cases for Computer Vision
Respondents in the Forrester survey also indicate an increased interest in computer vision. Banks are using the technology to obtain a high-level understanding of digital images or videos for use cases including identity verification and support of augmented reality projects.
Finally, Forrester also found that microservices is another area of investment, with nearly 35 percent of financial services developers utilizing the technology. The firm believes that microservices will play a critical role in building new applications on top of banks’ core, legacy systems, but also that smaller and mid-size banks will struggle to work in the DevOps environment usually used to build microservices.
Check out this CIO article for more on these and other hot trends in the banking sector. And for more on how technology is driving change within the financial services industry, check out this previous APEX of Innovation post.