The upsurge of Fintech Companies, Internet banking, mobile banking, Credit Cards, and UPI are some of the classic examples of emerging trends in the banking Sector. Banks in India are aggressively pushing automation, artificial intelligence (AI) & machine learning (MI), cloud computing, open banking, blockchain, edge computation, advanced data analytics, cyber security, etc. These technologies are enabling them to reinvent customer experiences, streamline operations, manage risks better, and offer innovative new services.
Artificial intelligence (AI) & Machine learning (ML):
Artificial intelligence (AI) is a broad field that includes machine learning (ML) as a subset. AI and ML can help banks analyze large amounts of data quickly, allowing them to provide more personalized services to their customers.
Cloud computing, or the cloud, is a technology that provides computing resources and services over the Internet on demand. The technology allows users to access computing resources like storage, servers, networking, software, and analytics without the need to manage physical resources. By implementing cloud-based solutions, banks can minimize reliance on physical infrastructure, leading to cost savings and quicker rollout of new features to meet growing customer needs. Banking workloads, such as risk modeling, data analytics, mobile banking, payments, cyber security systems, etc., are increasingly shifting to the cloud from on-premises data centers.
Open banking is a financial services model that allows third-party developers to securely access customers’ financial data without compromising data compliance in banking systems through application programming interfaces (APIs). Open banking also includes account aggregators that allow customers to manage all their banking accounts through a single platform. This model completely changes the way financial data is shared and accessed.
Blockchain
Blockchain technology is an advanced database mechanism that allows transparent information sharing within a business network. A blockchain database stores data in blocks that are linked together in a chain. The technology allows digital information to be recorded and distributed, but not edited. Thus, blockchain technology increases security so that data cannot be changed, tracked, or cheated.
Edge computing is a distributed computing model in which computing takes place at or near the device or a local server, instead of sending it to a central data center. This allows for faster processing and real-time insights and can improve the performance of applications. Edge computing is evolving and making breakthroughs banking on emerging technologies.
Advanced analytics is the process of using complex machine learning (ML) and visualization techniques to derive data insights beyond traditional business intelligence. This technique is primarily used for programs to recognize patterns and solve common problems in artificial intelligence, machine learning, and deep learning
Cybersecurity
The banking industry handles massive amounts of sensitive customer and transactional data. Cybersecurity talks about any technologies, practices, and policies for preventing cyberattacks or mitigating their impact by protecting computer systems, applications, devices, data, and financial assets. Cybersecurity also protects people against ransomware and other malware, phishing scams, data theft, and other cyber threats. With the rise of digital banking, banks need to invest in advanced cybersecurity measures to protect their customers’ data and maintain their trust.
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