Five essential elements for future banks innovation

The future of the banking industry will be more intelligent than now, but the research results that the risk will be higher, attracting industry attention. With the sponsorship of SAS, a new study conducted by the Economist Impact shows the options facing the banking industry and direction to move forward, and suggests five essential elements to guide the era of digital intelligence.

Financial institutions worldwide are threatening the survival of corporate survival due to intense economic instability, accelerating explosive technology and digital rivals. A new study of the ‘banking future’ of the economist’s influence, commissioned by the data and the leader of his SAS warns that the bank should make a decision now, or that it should take the risk of ranking in the accelerated future.

A study of 1,700 old managers in six continents and a report written based on deep interviews with selected banks and Fintech executives.Intelligent Bank: The future futureBanks with large and small banking companies offer a compass for the digital intelligence revolution.

“In the future, banking will be a decisive 10 years due to regulatory fragments, technological innovation and organic risks. In order to continue and lead the era of digital intelligence, financial companies must strengthen their data governing and restore consumer trust in a large degree.”

Stu Bradley, the risk of SAS, fraudulent and in accordance

‘Technology that became a double sword

This study emphasized the universalization of the approval of the one generated. 99%of the executives who participated in the study said they had implemented Genai to some extent. However, many agencies have difficulty making visible profits, and more than half of executives said they had little financial benefits in early Genai -related investments.

Moreover, the innovation of the generated strengthens the ability to detect morality, but criminals use it to create a deep and synthetic deep identity that ignores the existing method of detection. Nearly 80%of the executives who participated in the study expect internet attacks, fraud and financial crimes will have a significant impact on the functioning of financial institutions over the next decade. To respond to this, companies must have advanced protection systems based on it with strong data management and governance frameworks.

“The advantages of the one generated, such as the simplicity of operations or the most personalized client experience, have significant risks in operation, ethics and regulations. Banks must balance innovation and boundaries in every way.”

Melanie Noronha, officer for the policy of influence of economists and Insight

Risk management, now the essential elements!

Due to today’s macroeconomic instability, such as interest rate fluctuations, liquidity pressure and the allocation of financial systems, ‘intelligent risk management’ is now at the center of the financial institution’s sustainability strategy. The mirrors in the report show as follows:

• Interest rate fluctuations expose the weakness of liquidity, erode market value market value and reduces customer deposits.
• In response, the bank is building for the dynamic testing of stress, modeling of liquidity risk and real -time risk analysis.
• Due to the protection of personal data information, he and internet security, the risk of compliance between countries is intensifying.

“Banks must apply risk management in all layers of digital and operating transformations. In a world where the change accelerates, the resilience of recovery is more than one protective device and a catalyst for competitive growth and advantage.”

Melanie Noronha, officer for the policy of influence of economists and Insight

Innovation with governance and regulation

Most banks management (68%) believe that new rules related to artificial intelligence, open bank and blockchain will be moving forces for innovation than different regulations. Clear frames can accelerate the approval of responsible banks’ technologies and at the same time gain customer trust and respect the regulations. He is expected to serve as a plan to integrate future innovations such as quantum calculation.

(Tasks and opportunities for different regulations)

To strengthen governance, the banking industry presents it, the ethics of it, team cooperation, risk monitoring and reporting automation. For example, key agencies such as Standard Chartered and DBS Bank are implementing a dedicated model of his governance to balance innovation, transparency and justice, creating new industry standards for responsible innovation.

Intensive Competition and Banking Industry Finance

Traditional banks are expected to intensify competition with digital banks, Fintech innovations, major technology companies and even central bank digital currencies. Most institutions are attending finance initiatives embedded to generate new sources of income.

However, strategic partnerships with Fintech and large technology companies are one of the fastest paths to expand innovation and provide the new customer base. But partnerships are involved in risks, and 43%of management cited data sharing with third parties as key concerns. In response, banks are adopting joint governance, clear data protocols and integrated online security to protect these cooperation.

“For traditional banks, ‘blocking’ is a serious threat. If banks fail to turn technology, governance and talent into true customers -focused innovation, they can lead to the bank’s overthrow.”

Melanie Noronha, officer for the policy of influence of economists and Insight

In this report, the bank presents five essential elements for the next innovation.

1. By strengthening the data and governance of it, ethical innovation and elasticity of functioning

2. Build customer confidence through transparency, data protection and ethical practices of it

3. Simplify compliance through automation and cooperation between departments

4. Expanding business scope and capacity following strategic partnerships with fintech and large technology companies

5. Improving corporate innovation by strengthening talent ability and modernizing infrastructure

(Financial Institution Future Innovation Strategy)

‘Intelligent Banking Banking: The Future Aread’ newly released, which was recently released in 2025, is the following study of ‘Banking in 2035’, which Economist Impact and SAS released at the end of 2022. Moreover, users can explore the survey data by country and sector through the database at SAS.com/bankingsurvey.