APIs in banking: From tech essential to business priority

Your money was then sucked up via pneumatic tube and plopped onto the desk of a human bank teller, who you could talk to via an intercom system. BankLabs & Participate, pioneering the nexus of fintech automation banking industry and banking evolution.Read Matt Johnner’s full executive profile here. Matt Johnner, President & Co-founder of BankLabs & Participate, pioneering the nexus of fintech and banking evolution.

Finally, scaling up gen AI has unique talent-related challenges, whose magnitude will depend greatly on a bank’s talent base. Leading corporate and investment banks, for example, have built up expert teams of quants, modelers, translators, and others who often have AI expertise and could add gen AI skills, such as prompt engineering and database curation, to their capability set. Banks with fewer AI experts on staff will need to enhance their capabilities through some mix of training and recruiting—not a small task. During our inclusion/exclusion criteria, it is plausible that some AI/banking papers may have been missed because of the specific keywords used to curate our dataset. In addition, articles may have been missed due to the time when the data were collected, such as Manrai and Gupta (2022), who examined investors’ perceptions of robo-advisors.

Banking and financial services automation

They transform complex datasets from different loan trading desks, previously managed in varied formats and structures, into a unified, standardized format. This standardization is key to avoiding data chaos and ensuring efficient, coherent management post-merger. The banking industry has particularly embraced low-code and no-code technologies such as Robotic Process Automation (RPA) and document AI (Artificial Intelligence).

• Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities.
• As we contemplate what automation means for banking in the future, can we draw any lessons from one of the most successful innovations the industry has seen—the automated teller machine, or ATM?
• Effective balance sheet merging involves decisions on retaining, restructuring or selling parts of the loan portfolio.
• Moreover, a single error in the important banking process leads to the case of theft, fraud, and money laundering case.
• More recently, since 2017, papers combining Customers with Strategy have become more frequent.

It also helps avoid customer-facing processes until you’ve thoroughly tested the technology and decided to roll it out or expand its use. Financial institutions are embracing AI and projecting significant levels of investment to unlock its potential. NVIDIA’s survey found that one out of two C-suite respondents plan to increase spending on AI infrastructure by greater than 10 percent in 2021, compared to 2020. Financial firms are also looking to invest in AI technologies by identifying more use cases, hiring technical experts, and optimizing AI workflow and production cycles. Leaders must acquire a deep personal understanding of gen AI, if they haven’t already.

Adapt to Disruption With Hitachi Solutions

As someone who has spearheaded technological innovations in banking, I’ve observed that successfully integrating diverse balance sheets is pivotal for a smooth M&A process, especially when dealing with distressed banks or those with complex loan structures. ​The UiPath Business Automation Platform empowers your workforce with unprecedented resilience—helping organizations thrive in dynamic economic, regulatory, and social landscapes. To get the most from your banking automation, start with a detailed plan, adopt simple-but-adequate user-friendly technology, and take the time to assess the results.

Because the competitive landscape keeps evolving, financial institutions that fail to capture APIs’ benefits may find themselves lagging behind the competition. As one indicator of these roadblocks, funding for APIs has declined compared with previous years. Potential reasons include APIs not being as embedded in the business case life cycle, and a reduced focus on regulatory programs that require APIs. Companies must reassess whether the current structure for API programs can deliver on their timelines.

ABA Data Bank: Recent job growth concentrated in “catch-up” industries

(In the case of ATMs, it was in new branches and new services.) Second, instead of replacing jobs entirely, automation displaced certain tasks and enabled branch staff to “skill-up” and become integral in delivering other high-value added services such as business banking. IA consists mainly of the deployment of robotic process automation and artificial intelligence solutions. It enables a bank to acquire the agility and 24/7 access of fintech firms without losing any of its gravitas. Fast-forward to 2020, and banks are now viewed under the same lens as customer-facing organizations like movie theatres, restaurants and hotels. But my point is that advanced technology, customer demand and fintech disruptions have all dramatically changed what constitutes banking and how digital customers expect it to be.

• To track how perspectives have changed, we conducted a survey of IT executives at leading banks in June 2022 and compared the results with findings from our 2019 and 2020 surveys.
• Firms that understand and implement IA in time can be certain of sustained success, while those that haven’t must choose relevant automation tools to help them stay ahead of evolving customer expectations.
• However, it plays a significant role in the operations of banks and financial services.
• With these new systems in place, banks can focus on new products and services that increase revenues.

In addition, bank marketers have found an opportunity to use AI to better segment, target, and position their banking products and services. The sub-theme, AI and marketing (nine papers), covers the use of AI for different marketing activities, including customer segmentation, development of marketing models, and delivery of more effective marketing campaigns. For example, Smeureanu et al. (2013) proposed a machine learning technique to segment banking customers. Schwartz et al. (2017) utilized an AI-based method to examine the resource allocation in targeted advertisements. In recent years, there has been a noticeable trend in investigating how AI shapes customer experience (Soltani et al., 2019; Trivedi, 2019).