Did you know that 75% of banks are investing heavily in blockchain technology to secure their transactions? At a time when artificial intelligence has become part of our daily lives, even so-called traditional sectors are innovating to stay ahead of the game.
For professionals in the banking sector, security, compliance and efficiency are key concerns if financial institutions are to remain competitive.
We’ve compiled a list of emerging IT trends in the Canadian market. You will find practical advice on how to make the most of these technologies and apply these trends successfully. Happy reading! 🙂
Emerging trends in the banking sector
1. Strengthening cyber security
As cyber attacks become increasingly sophisticated, continued investment in advanced cyber security solutions remains imperative. Pioneers such as the Royal Bank of Canada (RBC) () have successfully integrated a number of cutting-edge solutions to protect their customers’ online banking transactions, such as two-factor authentication and automatic deposit of electronic funds transfers to minimise the risk of funds being intercepted by unauthorised third parties.
RBC is also highlighting security practices such as software updates, password protection, and phishing fraud awareness to ensure a safe online environment through its Cyberfriends programme. All these initiatives confirm the bank’s commitment to data protection and the trust of its users.
2. AI and megadata for an enhanced customer experience
Scotiabank, for its part, has positioned itself as one of the models in the judicious use of these technologies to offer more intelligent financial services focused on the individual needs of their customers.
For example, by making its global artificial intelligence platform available, Scotia can provide intelligent, personalised financial advice to its customers. This platform leverages automated language processing and machine learning to anticipate and understand customer needs, and has already demonstrated its impact by improving the quality of financial advice, speeding up analysis for customers worldwide, and enhancing customer engagement through targeted offers.
Following the success of this platform, Scotiabank has rolled out the Analytics Operational Strategy Framework (SOFIA), an AI tool designed to better understand customers potentially affected by economic uncertainty and predict their cash flows among other initiatives.
3. Blockchain technology to secure transactions :
Another example is the Canadian Imperial Bank of Commerce (CIBC), which now allows its customers to purchase cryptocurrencies, illustrating the integration of blockchain into banking services. This development offers customers a diverse and secure financial experience, leveraging the benefits of blockchain.
Blockchain technology, which has been widely adopted in the banking sector, enhances the security of transactions by introducing a decentralised, transparent and immutable model.
Our advice for IT managers in banks
You’re now up to date with all the key trends in the Canadian market. But how can you successfully incorporate them into your strategy? Here are a few practical tips to guide you towards effective implementation.
1. Invest in continuing training
Invest in ongoing training for your team to ensure a thorough understanding of new technologies. TD offers its employees e-learning courses, for example. Analyse your team’s specific needs and choose training courses accordingly.
2. Implement AI, but gradually!
Adopt a phased approach to AI integration, starting with targeted pilot initiatives. Canada’s national bank has successfully made this transition by first testing AI in specific areas before a wider implementation.
3. Find your place in the Blockchain communities
Blockchain communities, which bring together enthusiasts, developers and industry experts, play a crucial role in the advancement of blockchain technology.
Membership of these communities offers IT managers in the banking sector a valuable opportunity to access innovative ideas, keep abreast of technological developments and collaborate with key players in shaping the future of blockchain in finance.
By staying informed and adopting the right technologies for your needs, you position your financial institution at the forefront of digital evolution. Happy exploring and implementing!
