Technology Trends in BFSI

Innovative technologies in the Banking and financial sector are now revolutionizing the banking
system. As a result, the conventional banking scene is set to change drastically in the coming years.

1. Cloud services will organize banking activities

The more cloud-based computing gets established; the more pleasure banking sectors will have on
applying it. Additionally, SaaS apps are continually improving. As this is happening, main operations of
financial services will be sent to the cloud and automated services. As these proceed to happen, the
need for individual services in company infrastructures will surely be decreased.

Progressive banks are now making progress in cloud selection. Disruptive advances that are changing
the presentation of business—the blockchain, Big Data, IoT, artificial intelligence (AI) - will be utilized
by applying cloud computing.

Edgeverve Technologies have recently launched their flagship 'Finacle UBS' in cloud platform.

2. Social Media

Social media platforms are now leveraging their potential, offering BFSI enterprises a vast opportunity
to explore newer markets and consumers. Social media today has a significant role in determining a
borrower’s creditworthiness.

Moving away from using social media just for customer service and as a marketing platform,
innovative BFSI enterprises are creating business models revolving around social media.

Banks can now focus on incorporating Social Media inputs to determine credit worthiness of the
borrower.

3.Open Banking – partnerships and collaborations

For long, banks and banking systems have worked in a closed ecosystem with strict regulations and
controls, proprietary frameworks, apps and channels. Sharing of any data with customers or even
externally has been marginal to non-existent.

Open Banking has given rise to a new shared environment where banks are proactively collaborating
with other third-party players, allowing access via APIs which can be integrated with their systems.

In the present regulatory environment, it also makes sense for fintech companies to partner with an
existing financial institutions, allowing for integrations of different solutions. With banks keen to
harness the potential of the data they already have, the past year has seen them actively pursue
fintech firms and developers for collaboration, acquisition, or even setting up in-house capabilities.

This is creating more partnerships, revenue sharing models, helping to customise data-based product
offerings, and we’re likely to see more of this in 2019 as BFSI firms continue to build upon this mutually
beneficial relationship.
4.Advances in robotics and Artificial Inteligence

We are already seeing alliances between leading BFSI companies, using robotics and AI to provide
Customer Service,reduce costs, and mitigate risks. They are targeting a specific combination of
capabilities such as social and emotional intelligence, natural language processing, logical reasoning,
identification of patterns and self-supervised learning, physical sensors, mobility, navigation, and
more. And they are looking far beyond replacing the bank teller.

Already, some robots can sense the details of their environments, recognize objects, and respond to
information and objects with safe, useful behaviours. Soon, they will be able to perform not only more
tasks, but more complex tasks. Service robots are in the early stages of development and they still
face some big technological hurdles. In the coming years, we may expect modest, evolutionary gains.

5.Regulators will turn to technology.

The use of technology and its implications are not limited to financial institutions. Regulators are
adopting a wide range of data gathering and analytical tools. They are trying to learn more about
individual institutions’ activities and overall systemic activity. They also hope to monitor the industry
more effectively and to predict potential problems instead of regulating after the fact. Using
sophisticated analytical tools on large volumes of data, regulators can compare scenarios and address
potential issues
.