5 Technologies Used for Software Development in Banking
Top 5 Technology used Banking for Software Development
The banking industry is undergoing a digital transformation. Also, there is a growing focus on the development of innovative software solutions to meet the changing needs of customers. In this blog, we’ll take a closer look at five of the most important technologies used in banking software development in banking. We will also cover the latest statistics and trends in their adoption.
So then, let us begin without any further delay. Let’s explore the key top technology trends in the banking industry and examine their potential to revolutionize current banking operations.
Top 5 Technology Used in Banking Sector 2023
1. Blockchain Technology
Firstly, blockchain technology is a decentralized, distributed ledger system that enables secure, transparent transactions without the need for intermediaries. It’s being increasingly adopted in the banking industry. There is a range of use cases, from payments and remittances to supply chain management and asset management.
According to a recent report by Accenture, the global blockchain market will reach $11.7 billion by 2022. The banking industry is leading in terms of adoption. A survey by the Blockchain Research Institute found that 70% of banks are currently exploring blockchain technology. To add to this, more than 40% have already launched a blockchain-based solution.
2. Artificial Intelligence (AI)
Second, artificial intelligence (AI) is changing the way banks do business. It is automating routine tasks and enables the development of new, personalized financial services. A range of applications uses AI in the banking industry. It includes fraud detection, customer service, and loan processing.
A report by the International Data Corporation (IDC) found that the global AI market will grow to $100 billion by 2025. The banking industry is leading in terms of investment. A recent survey by Accenture found that 60% of banks are already using AI. To add to this, another 20% plan to do so within the next two years.
3. Cloud Computing
Thirdly, cloud computing is a model for delivering computing resources over the internet, enabling organizations to scale their IT infrastructure and reduce costs. Cloud computing is used in the banking industry, for a range of applications, from data storage and processing to application development and testing.
A recent report by Gartner found that the global cloud computing market will reach $623 billion by 2023. Here also, the banking industry leads in terms of adoption. A survey by the Cloud Security Alliance found that 90% of banks are already using cloud computing. Another 10% plan to do so within the next two years.
4. Big Data Analytics
Fourth, big data analytics is a technology that enables organizations to process and analyze large amounts of data. This helps them gain insights and make data-driven decisions. In the banking industry, big data analytics is used for various applications. The list includes customer segmentation, risk management, and fraud detection.
Further, a report by the International Data Corporation (IDC) reveals that the global big data market will reach $103 billion by 2023. The banking industry is leading in terms of adoption. A survey by the Data Management Association found that 80% of banks are already using big data analytics. To add to this, another 20% plan to do so within the next two years.
Lastly, cybersecurity is the practice of protecting computers, networks, and data from unauthorized access, theft, or damage. In the banking industry, cybersecurity is of critical importance. Banks are a major target for cybercriminals due to the large amounts of sensitive financial data they hold.
A report by the Global Cybersecurity Alliance found that the global cybersecurity market will reach $170 billion by 2020. The banking industry will lead in terms of investment. A survey by the International Association for Cryptologic Research found that 90% of banks have a dedicated cybersecurity team. To add to this, another 10% plan to establish one within the next two years.
the banking sector is at the forefront of technological innovation, leveraging cutting-edge solutions to enhance efficiency and security. Blockchain, AI in fintech, cloud computing, big data analytics, and cybersecurity are pivotal in shaping the industry’s future. With widespread adoption and robust investments, banks are poised to navigate the evolving landscape and deliver unprecedented value to customers.