Essential Banking Technologies in 2024

The banking sector is undergoing a profound transformation driven by technological advancements. Digitalisation, automation, and data-driven insights have emerged as pivotal areas of focus for banks striving to elevate customer experiences, streamline operations and gain a competitive advantage.

Here’s an overview of the current technological landscape in the banking industry, with a focus on the United Kingdom. The advent of digital banking has revolutionised customer interactions with their banks. Mobile banking apps, online portals, and self-service options have become standard, offering customers unprecedented convenience and real-time access to their accounts.

What is Open Banking?

In the world of everyday as well as in some cases of private banking, open banking is one of the latest trends emerging in the industry.

This means that banks are opening up their systems to allow customers and partners to connect to their APIs (Application Programming Interfaces) to access their services and products. Open banking enhances customer convenience and options. As open banking evolves, it’s expected to see more integrated banking platforms. These platforms will bring various banking services and products together, making banking experiences smoother and more seamless than ever before. 

Banking Tech Trends to Look Out For in 2024

As technology continues to advance, banks are embracing innovative solutions to enhance operational efficiency, elevate customer experiences, and stay ahead in a competitive market. From hyper automation to cloud computing, blockchain innovation to cybersecurity measures, this overview highlights the key trends shaping the banking landscape.

Blockchain Innovation

Blockchain technology has emerged as a disruptive force in the banking industry, revolutionising areas such as cross-border payments, trade finance, and identity verification. Its decentralised and secure nature has the potential to streamline processes, reduce costs, and enhance transparency in transactions.

Low-Code Development Platforms

Low-code development platforms like Kissflow empower banks to create applications with minimal coding requirements, expediting development and reducing reliance on traditional coding methods.

These platforms offer visual interfaces, pre-built templates, and drag-and-drop functionalities, enabling both technical and non-technical stakeholders to participate in application development. Banks can leverage low-code development to swiftly develop custom applications, optimise internal processes, and deliver innovative customer experiences.

Artificial Intelligence (AI) and Machine Learning (ML)

AI and ML technologies are increasingly utilised by banks to enhance operational efficiency, detect fraud, and elevate customer experiences. AI-powered chatbots and virtual assistants provide personalised assistance and support, while ML algorithms analyse vast datasets to uncover valuable insights for risk assessment and customer segmentation.

Cloud Computing Adoption

Banks in the UK are embracing cloud computing to optimise infrastructure costs, enhance scalability, and expedite application deployment. Cloud-based solutions offer robust data security measures, agility, and seamless integration capabilities, enabling banks to innovate and introduce new services rapidly.

Robotic Process Automation

Robotic Process Automation (RPA) has gained momentum in the banking sector, automating repetitive manual tasks and enhancing operational efficiency. Banks are more commonly deploying software robots meaning that they can streamline processes such as customer onboarding, data entry, and compliance checks, thereby minimising errors and boosting workplace productivity.

Hyper Automation

Hyper automation integrates RPA with AI and machine learning capabilities to automate intricate business processes from end to end. Banks can leverage hyper automation to streamline repetitive and rule-based tasks such as data entry, document processing, and customer onboarding. By automating these processes, banks can minimise errors, enhance operational efficiency, and enable employees to focus on high-value activities.

DevOps and Automation Adoption

DevOps practices merge software development and IT operations to enable continuous integration, continuous delivery, and rapid application deployment. By embracing DevOps methodologies, banks can accelerate time-to-market for new services, enhance collaboration between development and operations teams, and improve the overall quality and stability of their applications. Automation tools further expedite development and deployment processes, enabling banks to achieve higher operational efficiency and agility in the competitive banking landscape of 2024.

Data Analytics and Big Data Utilisation

Banks are using data analytics and big data technologies to derive actionable insights from an extensive customer database. By leveraging data analytics, banks can gain heightened insights into customer behaviour, tailor offerings, and make data-driven decisions to mitigate risks and optimise business operations.

Internet of Things (IoT) Integration

Internet of Things (IoT) technologies encourage seamless connectivity of both physical devices and objects, enabling them to collect and exchange data. Banks are leveraging IoT for applications such as remote asset monitoring, real-time fraud detection, and personalised customer experiences. 

Cybersecurity and Fraud Prevention

With the proliferation of digital banking services, cybersecurity and fraud prevention have become paramount concerns. Banks are investing in advanced cybersecurity technologies such as threat intelligence, encryption, and biometric authentication to safeguard customer data and mitigate evolving threats effectively.