Technology as an enabler to reimagine banking

The financial landscape has reached a point where technology is no longer just a support function but a critical enabler of business transformation. Indeed, for market leaders, it is much more than that; it is an amplifier of ambitions. Across the world, visionaries in banking are not only leveraging advanced technologies to enhance customer experiences, streamline operations, and drive innovation, but they are using it to reimagine banking. However, as we look to the future and consider the seemingly endless possibilities powered by technology, it is essential to understand how technology fits, and where it can and should be used to amplify business outcomes and position banks for future success.

Key trends in banking technology

The banking sector is witnessing several transformative trends that are reshaping the industry. Among these, artificial intelligence (AI), blockchain, and cloud computing stand out as pivotal technologies driving change.

1. Artificial Intelligence (AI): AI is revolutionizing banking by enabling personalized customer experiences, enhancing fraud detection, and automating routine tasks. AI-powered chatbots and virtual assistants are providing 24/7 customer support, while machine learning algorithms are improving risk management and credit scoring. As the technology continues to evolve its application is also maturing as leaders evaluate which use cases are most suited to AI. Generative AI is used by 43% of financial services organizations for data analysis and personalized banking. About 75% of these organizations consider their AI capabilities to be industry-leading or competitive¹.
2. Blockchain: Blockchain technology is enhancing transparency, security, and efficiency in banking transactions. It is particularly impactful in areas such as cross-border payments, trade finance, and identity verification. By reducing the need for intermediaries, blockchain can significantly lower transaction costs and increase transaction speed. From a retail banking perspective, the use of blockchain is still somewhat nascent, but the potential for rapid acceleration remains. The fintech market value is projected to reach $556.5 billion by 2030, with significant contributions from blockchain technology. Digital assets, including blockchain-based solutions, are expected to account for over 25% of the fintech market, with assets under management (AUM) worth $80.08 billion in 2025². Blockchain technology has revolutionized cross-border payments, offering near-instant transfers with reduced costs and transparent exchange rates³. This innovation not only enhances the efficiency of international transactions but also provides greater security and transparency, making it a game-changer in the financial industry.
3. Cloud Computing: Cloud technology offers scalable and flexible solutions for banks, allowing them to manage data more efficiently and reduce IT infrastructure costs. Cloud-based platforms enable seamless integration of new services and applications, fostering innovation and agility. Fintech companies are leveraging cloud technologies to enhance operational efficiency, improve customer experience, and drive innovation. The fintech cloud market is expected to see significant growth, driven by the convergence of financial services and cloud computing. This growth is supported by substantial investments, with the fintech industry featuring an average investment value of USD 47 million⁴, where cloud computing plays a crucial role. However, care must be taken as banking is a highly regulated business, and concerns around areas such as data sovereignty must be considered. In places where cloud is not yet approved, steppingstone approaches to get ‘cloud-ready’ are crucial.

When evaluating the rapidly changing technology landscape, one can be easily forgiven for focusing on the next big thing from a technology perspective. In short, banking is evolving, hence technology is required. This is correct; however, because banking is nuanced and sophisticated, delivering the products and services customers want demands deep banking functionality. It is this combination that provides the foundation to reimagine banking.

The power of ecosystems

One of the most significant shifts in the banking industry is the move towards ecosystem-based models. Traditional banking, where all products and services are provided by a single institution, is giving way to a more interconnected approach. In this new paradigm, banks act as orchestrators, bringing together a range of partners to deliver innovative financial services seamlessly embedded in customer journeys.

Embedded Finance: Financial services are increasingly being integrated into non-financial platforms, making them practically invisible to customers. For example, payment solutions embedded in e-commerce platforms or lending services integrated into real estate websites. This shift allows banks to meet customers where they are, providing convenience and enhancing the overall customer experience.

Partnerships and Collaboration: Banks are forming strategic partnerships with fintech companies, technology providers, and other financial institutions to offer a broader range of services. These collaborations enable banks to leverage the strengths of their partners, such as advanced technology or niche expertise, to deliver superior products and services.

Open Banking: Open banking initiatives, driven by regulatory changes and customer demand, are facilitating the sharing of financial data between banks and third-party providers. This openness fosters innovation, as new players can develop applications and services that enhance the banking experience. For banks, it means the ability to offer more personalized and competitive products.

Customer-Centric Ecosystems: By orchestrating a network of partners, banks can create ecosystems that revolve around the customer. These ecosystems provide a holistic view of the customer’s financial life, enabling banks to offer tailored solutions that address specific needs. For instance, a customer looking to buy a home could receive integrated services, including mortgage advice, insurance, and investment options, all within a single platform.

Practical insights for senior IT executives

To leverage these technologies and ecosystem models effectively, senior IT executives at retail and commercial banks should consider the following practical steps:

Start with the Customer: Focus on technologies that enhance customer experiences. Implement AI-driven personalization to offer tailored products and services that meet individual customer needs. Deliver at scale and pace across the channels customers want.

Foster a Culture of Innovation: Encourage a culture that embraces innovation and experimentation. Create cross-functional teams to explore new technologies and develop innovative solutions that address emerging market needs. ‘Failure is not an option’ is no longer an option – however, this does not mean ‘move fast and break things’ as banking is still about handling real people’s money.

Collaborate with Fintechs: Partnering with fintech companies can provide access to cutting-edge technologies and innovative business models. Collaborations can help banks stay competitive and quickly adapt to changing market dynamics. Recognize that in some situations you may be collaborating and in others you may be competing. Your IT infrastructure needs to support this flexibility.

Leverage Open Banking: Embrace open banking initiatives to unlock new opportunities for innovation. By sharing data with third-party providers, banks can offer more personalized and competitive products, enhancing customer satisfaction and loyalty. Being open while keeping a clear focus on who your customers look to – i.e., you – in all situations, is of crucial importance, especially if things go awry.

Leveraging technology to reimagine banking

Looking ahead, the future of banking technology holds immense potential to reimagine banking. We envision a world where banks are not just financial institutions but trusted partners in their customers’ lives. Advanced data analytics will enable banks to anticipate customer needs and offer tailored solutions proactively – perhaps even before customers fully know that they need them. AI and machine learning will drive hyper-personalization, making banking experiences seamless and intuitive.

Moreover, the potential integration of blockchain and decentralized finance (DeFi) could democratize access to financial services, making banking more inclusive and transparent. While DeFi is still in its nascent stages, it presents an opportunity for banks to explore and prepare for its implications. Banks should stay informed about DeFi developments, experiment with pilot projects, and consider how they might integrate these technologies into their existing frameworks.

Cloud computing will continue to play a vital role in enabling banks to scale their operations and innovate at speed. Ecosystem-based models will become the norm, with banks orchestrating a network of partners to deliver comprehensive and integrated financial services.

Conclusion

As we reimagine banking, it is clear that technology will be the cornerstone of business transformation. By embracing AI, blockchain, cloud computing, and ecosystem-based models, senior IT executives can drive innovation, enhance customer experiences, and position their banks for long-term success. The journey to a reimagined banking landscape is both exciting and challenging, but with the right strategies and a forward-thinking mindset, the possibilities are limitless.

1. Fintechmagazine.com, Top 10: Fintech Trends in 2024
2. Forbes, Digital Transformation: The FinTech Framework And How It Competes With Legacy Systems
3. FXCintelligence, Cross-border payments in 2025: 15 trends set to shape the year
4. Fidelity Digital Assets, 2025 Look Ahead