Banks have been rapidly innovating recently and in lots of very visible ways. Deposits by picture, chatbots, blockchain transactions, mobile apps, wireless ATMs and even artificial intelligence are bantered about as the areas where banks are investing heavily in their infrastructure. But no. According to a survey by Cornerstone Advisors, those “first thoughts” of banking innovation are not even close to where the money is actually being spent. So where are banks and credit unions planning to spend money on new technology? In other words, “what’s HOT” in banktech? The top 5 banking infrastructure investment categories are the following:
- Digital account opening
- New account/teller systems
- Commercial loan origination systems (LOS)
The article below outlines each of these in much greater detail.
Bill Taylor/Fintek Capital
“OBSERVATIONS FROM THE FINTECH SNARK TANK
In the movie All The President’s Men, Woodward and Bernstein (played by Redford and Hoffman) meet their informant in a parking garage and receive the following advice: “Follow the money.”
If you want to know which technologies are hot in banking, you should do the same.
Talk is Cheap
For all the talk and hype surrounding technologies like AI and blockchain, just a little more than one in 10 mid-size ($500m to $50b assets) financial institutions will invest in chatbots or machine learning this year according to a study from Cornerstone Advisors. What are these institutions doing? For the most part, they’re either talking about the technologies or the technologies aren’t even on their radar.
Follow the Money
What are the truly “hot” technologies in banking? They’re the ones that banks and credit unions actually invest in.
At the end of the past few years, Cornerstone has surveyed financial institutions to find out which technologies they plan to add or replace in the coming year. Here are the top five for 2019…