What innovation is coming to banking 2023?
As our industry adapts to the new digital demands of consumers, key trends have begun to emerge. The banking industry will be undergoing a technological transformation in the year 2023. Top trends in banking to expect include cloud migrations, the use of DevOps and omnichannel strategies, and greater use of AI.
Artificial intelligence, blockchain, mobile banking, cybersecurity, big data analytics, and augmented reality are among the key trends shaping the future of banking.
In 2023, we can expect to see more banks embracing sustainable and green banking practices. They will focus on integrating ESG considerations into their decision-making processes, reducing their environmental impact, and promoting sustainable economic growth.
In 2023, banks will increasingly 'walk the walk' when it comes to data. They'll look for ways to use the troves of it that are at their disposal to provide new and more personalized, timely, and relevant services and offerings to customers, better meet regulatory requirements, and unlock new monetary opportunities.
Must have banking technologies in 2023:
Digitalization, automation, and data-driven insights have become key focus areas for banks looking to enhance customer experiences, streamline operations, and gain a competitive edge.
Hyper-Personalized Banking: Revolutionizing the Customer Experience. Hyper-personalized banking is an emerging trend that takes the concept of personalized financial services to an entirely new level.
IoT technology is increasingly being integrated into the banking industry to enhance data collection efficiency. This automation facilitates the acquisition of data, streamlines processes such as KYC and lending, and enables real-time event response.
| Bank NameBank | CityCity | Closing DateClosing |
|---|---|---|
| Heartland Tri-State Bank | Elkhart | July 28, 2023 |
| First Republic Bank | San Francisco | May 1, 2023 |
| Signature Bank | New York | March 12, 2023 |
| Silicon Valley Bank | Santa Clara | March 10, 2023 |
2023 almost went down in the history books as the year America lost faith in its banks. Over a few weeks in the spring of 2023, multiple high-profile regional banks suddenly collapsed: Silicon Valley Bank (SVB), Signature Bank, and First Republic Bank.
Key Findings of the Study
15% of banks plan to reduce their technology spending in 2024—the largest percentage in the history of What's Going On In Banking. 23% of banks and 27% of credit unions say they'll never be done with their digital transformation strategies. (Cornerstone applauds these institutions.)
How can a bank be innovative?
Automating the collection and consolidation of data is a key task for banks who want to innovate, as it provides a unified and comprehensive view of their data, which can be used to gain deeper insights, better understand customers and monitor potential risks.
- 1 Customer demand. One of the most important drivers of innovation in banking technology is customer demand. ...
- 2 Regulatory pressure. ...
- 3 Competitive advantage. ...
- 4 Cost reduction. ...
- 5 Social responsibility. ...
- 6 Technological advancement. ...
- 7 Here's what else to consider.
“An innovation that is disruptive allows a whole new population of consumers at the bottom of a market access to a product or service that was historically only accessible to consumers with a lot of money or a lot of skill.” – Clay Christensen.
| Failed banks | Date closed |
|---|---|
| Heartland Tri-State Bank, Elkhart, Kansas | 07/28/2023 |
| First Republic Bank, San Francisco | 05/01/2023 |
| Signature Bank, New York | 03/12/2023 |
| Silicon Valley Bank, Santa Clara, Calif. | 03/10/2023 |
The most in-demand and top tech trend in 2023 is Artificial Intelligence (AI). AI has huge potential and most of the industries are utilizing AI in different aspects. Interest in AI has increased threefold from 2021 to 2022, as per a report by McKinsey.
- Ariana Drehsler/Bloomberg. Silvergate Bank. Self-liquidation announced March 8. Total assets: $11.4 billion as of Dec. ...
- David Paul Morris/Bloomberg. Silicon Valley Bank. Failed on March 10. ...
- Angus Mordant/Bloomberg. Signature Bank. Failed on March 12.
AI for corporate banking automates tasks, boosts customer services through chatbots, detects fraud, optimizes investment, and predicts market trends. This increases productivity, lowers costs, and provides more individualized services. Q. How AI helps in banking risk management?
How is Ai used in Banking? AI is used in banking to enhance efficiency, security, and customer experiences. It automates routine tasks like data entry and fraud detection, reducing operational costs. AI-driven chatbots provide 24/7 customer support.
Digital banking has become the most common way consumers bank today. The primary method of account access for more than 43% of consumers in 2021 was mobile banking.
"Citi is honored to be recognized by Global Finance Magazine as the World's Best Digital Bank for 2023, said Shahmir Khaliq, Citi's Head of Services. “We are using technology to transform our treasury operations and meet the evolving digital needs of business in this complex global landscape.
How do you think technology is changing banking?
(2)Banking process is faster than before and more reliable. Maintenance and retrieval of documents and records have become much faster and easier. (3) Computerized banking also improves the core banking system. With a core banking system, all branches have access to common centralized data and are interconnected.
Unfortunately, these problems have carried into 2024 making many uneasy about the overall security of financial institutions across the country. The Federal Deposit Insurance Corporation (FDIC) has continued to see more banks fail, as outlined by the FDIC failed bank list, with the economy still struggling as a result.
What is the No. 1 bank in America? J.P. Morgan Chase is the number one bank in America in terms of total assets held, according to the Federal Reserve.
- First Republic Bank (FRC) . Above average liquidity risk and high capital risk.
- Huntington Bancshares (HBAN) . Above average capital risk.
- KeyCorp (KEY) . Above average capital risk.
- Comerica (CMA) . ...
- Truist Financial (TFC) . ...
- Cullen/Frost Bankers (CFR) . ...
- Zions Bancorporation (ZION) .
The worst banks are Wells Fargo and Citibank. Wells Fargo is the worst bank overall, with a high percentage of unresolved complaints and loss of Better Business Bureau accreditation. Citibank has a string of high-profile cases involving operational chaos and regulatory fines.
