Top Ten Technology Trends; 2018 Edition

Top Ten Technology Trends; 2018 Edition

2018 will be a great year where some new technologies will emerge from AI to blockchain technologies. Synechron identified the ten most significant technology trends that will dominate in 2018 during their yearly forecast as discussed below:

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2018 will be a great year where some new technologies will emerge from AI to blockchain technologies. Synechron identified the ten most significant technology trends that will dominate in 2018 during their yearly forecast as discussed below:

1. Huge Investments in Digital Transformation

Experiences with communication and retail industries have changed customer’s expectations from credit unions and banks. Customers are becoming more digital, forcing the banks to improve their digital platforms significantly. This digital transformation has forced financial institutions to invest more in digital transformation projects.

2. The Frontiers of Innovation: Blockchain and Artificial Intelligence

According to a recent report from Synechron, artificial intelligence and blockchain will facilitate disruption of financial services in 2018. The development of Artificial intelligence will focus more on its use in marketing, investments and wealth management sectors of the financial industry. This will be a significant shift from machine learning technologies to real cognitive computing. Synechron forecasts that Robo-investors will be converted to a fintech platform for managing wealth.

3.Digital-Only Banks will pose a significant Threat

While the banking industry is transforming most of its operations to online channels, digital-only banks will pose a real challenge to traditional banks that have dominated the market for a long time. According to a recent survey on Top 10 Technology Trends in Retail Banking, the new entrants of online bankers have appealed to many clients who are digitally-savvy. Digital-only banks have increased competition forcing traditional credit unions and banks to improve their digital services to counter these online banks.

4. Design Thinking

Synechron believes design thinking and creative engineering can bring UX vision to pass. Virtual and Augmented reality will serve to enhance customer’s experience.

5. Real-Time Risk Decisions

AI will aid in managing risks by facilitating the enterprise-wide analysis required to meet the ever-changing needs of your organization. Given the speed which financial industry is moving, the objective of real-time risk through AI can be achieved.

6.Alternative Lenders Leverage Alternative Data

According to a 2008 economic report by Capgemini, most customers who had a lousy credit history were disadvantaged after the financial crisis hit credit unions and banks in 2008. This gave a chance to online lenders to enter and thrive in the lending market. These new lenders use technology algorithms to check the credit history of their customers and obtain additional information from their social media accounts.

7. RegTech

With a stricter regulatory environment, banks and credit unions will rely on AI to understand volumes of regulatory information presented to them. Regtech will play a major role in ensuring that banks obtain more benefits from regulators beyond compliance. This will form the basis of analytics and other related risks.

8. Bit Data Gets Even Bigger

The initiatives for Big Data are striving for an open and modern business model with better visualization and data tools. While the efforts of data standardization have begun to yield fruits, most financial institutions are relying on data infrastructure and architecture. These new ways have made it possible for institutions to gain value from data such as data lineage, data visualization, and data virtualization

9. Connecting with Third-Party providers to Drive Customer-Centricity

Using open APIs, credit unions and banks will undergo a transformation on how they offer CX-based processes. Fintech companies are dominating this market so far. Customers have adopted them because of better services, thus forcing the credit unions and banks to adopt.

10.The Cloud: Creeping Into Every Corner

In 2018, banks will adopt cloud services more, while focusing on regulatory compliance and security continuing to dominate. We expect to see more financial institutions adopting the cloud services. Credit unions and banks will be under pressure to come up with cloud-enabled business models in 2018, while the continued use of APIs will influence customers to cloud services.

While blockchain and bitcoin were hitting the headlines last year, mobile payments have changed how financial institutions operate. Fintech ventures will become more popular in 2018. With the value of cryptocurrencies expected to hit $300 billion in 2018. In this age where innovations are endless, you can rest assured that the future will be entirely different from what we have today. Technological innovations will undoubtedly change the way we do our business today.