BLOG
Beyond Artificial Intelligence: The New Technologies Banks Must Start Using Today
Published by Fintech Americas on Jun 12, 2023
Discover the emerging technologies with the greatest disruptive potential for the financial industry, including the Metaverse, Web 3.0, and quantum computing.
In an increasingly digitalized and hypercompetitive world, banks face the challenge of constantly adapting in order to improve efficiency and personalize their services.
As demand grows for faster, safer, and more tailored customer experiences, the financial industry is exploring different approaches to meet evolving customer expectations.
No institution wants to fall behind in this race, and innovation has become one of the primary strategies banks are betting on to stay ahead.
A recent Forrester report highlights this trend, revealing that 77% of banking executives say their organizations will increase spending on emerging technologies this year.
Artificial Intelligence is currently the technology dominating headlines, with 85% of banking executives stating they already have a clear strategy for adopting AI in the development of new products and services.
However, there are other emerging technologies with tremendous potential to transform the industry as we know it today and directly impact critical areas such as customer service speed and personalization.
Below, we explore four of the most important emerging technologies for banking — beyond Artificial Intelligence.
The Metaverse
The Metaverse may sound like something out of a science fiction film, but it is already becoming a reality.
McKinsey defines the Metaverse as a virtual universe made up of interconnected virtual worlds, social networks, and virtual economies. It is a fully immersive experience that allows users to interact with one another and with virtual objects in real time, extending beyond virtual and augmented reality to include technologies such as blockchain, Artificial Intelligence, and 5G networks.
Banks are still experimenting with how to leverage the Metaverse to innovate their products and services, but its potential is becoming increasingly clear.
One of its most promising applications is strengthening customer relationships by transforming digital experiences into more immersive and personalized interactions.
Through these technologies, users can create avatars and virtual environments that reflect their personal preferences. Financial service providers can use these insights to tailor experiences to each individual customer’s needs.
For example, banks could present financial information in visually engaging and easy-to-understand formats or offer personalized investment recommendations based on each user’s objectives and risk profile.
The Metaverse also creates opportunities for banks to engage younger audiences.
New generations are digitally native, spend much of their time online, and are naturally drawn toward innovative products and services such as cryptocurrencies and virtual reality rather than traditional banking experiences.
Banks in Latin America are already experimenting with immersive Metaverse experiences.
Banco do Brasil, for example, launched BraBlox in 2022 — the bank’s first experience inside Roblox, one of the world’s most popular gaming platforms.
Designed for younger audiences, BraBlox guides players through a map filled with puzzles that teach financial literacy and help solve real-world budgeting and planning challenges.
Web 3.0
Web 3.0 represents the next evolution of the internet, aiming to create a smarter and more semantic web where machines can better understand and use information to provide more relevant and personalized services and content.
This technology is also built around public blockchains, promoting greater decentralization and democratization of the internet.
For the banking industry, Web 3.0 is expected to deliver significant advances in the short term, mainly because it enables greater interoperability of data.
This allows banks to access and share information more securely and efficiently, facilitating integration between systems and improving collaboration among financial service providers — ultimately increasing operational efficiency.
From the customer perspective, two major benefits stand out.
The first is improved usability. Because Web 3.0 relies on more personalized and intuitive interfaces, banking operations such as transactions and financial information access become smoother and easier to use.
The second is enhanced security. Web 3.0 incorporates advanced technologies such as encrypted data storage and multi-factor authentication, helping protect both customer information and financial transactions more effectively.
Banks are already beginning to adopt the benefits of Web 3.0.
Banco Santander, for example, launched the first bond fully managed on blockchain technology from issuance through maturity.
The $20 million bond was issued faster, more efficiently, and more simply thanks to the use of blockchain infrastructure.
Low-Code and No-Code Development Platforms
Low-Code and No-Code platforms allow users to build applications without extensive technical or programming knowledge.
While Low-Code originally focused on accelerating the work of professional engineers, No-Code evolved to enable virtually anyone to create digital solutions.
Beyond application development, these platforms can also automate business processes such as:
- data analysis;
- document management;
- CRM workflows;
- and other operational tasks.
The potential for banks is enormous.
Low-Code and No-Code platforms can significantly accelerate application and service development by providing predefined components, visual interfaces, and drag-and-drop tools that simplify solution creation.
As a result, financial institutions can launch new products and services much faster and involve employees outside traditional IT departments in the innovation process.
These non-technical contributors can add value from different perspectives while also helping address talent shortages in IT and reducing development costs.
Low-Code and No-Code platforms are becoming increasingly common across financial services.
For example, CredAbility used the OutSystems low-code platform to build a web and mobile application that helped customers access relevant financial information 33% faster.
Quantum Computing
Quantum computing is an emerging field that uses the principles of quantum physics to process and manipulate information in ways fundamentally different from classical computing.
Unlike traditional bits, which can only exist as either 0 or 1, quantum bits — or qubits — can exist in multiple states simultaneously through a concept known as superposition.
This allows quantum algorithms to perform certain calculations dramatically faster than conventional systems.
Although still in its early stages, quantum computing is expected to significantly impact several areas of financial services.
On one hand, it has the potential to strengthen the security of banking systems and data.
On the other hand, the massive processing capabilities of quantum computing will allow financial institutions to analyze enormous volumes of information more efficiently and accurately, enabling highly personalized financial services tailored to each customer’s needs and preferences.
By combining massive processing power with advanced quantum algorithms, banks could develop:
- more accurate risk prediction models;
- more sophisticated fraud detection systems;
- and highly personalized financial management services.
These advances would directly improve operational efficiency across the industry.
J.P. Morgan is already among the pioneers exploring quantum computing.
The institution is researching how quantum technologies can help solve challenges such as options pricing, fraud detection, risk modeling, and other financial operations.
The Key to Sustainable Long-Term Growth
It is clear that a new wave of disruption lies ahead — one that goes far beyond Artificial Intelligence.
Financial institutions face the challenge of prioritizing which technologies to adopt in order to achieve sustainable growth while keeping pace with competitors and evolving customer expectations.
As emerging technologies continue to redefine innovation, banks must constantly evaluate the landscape and determine which technologies offer the greatest strategic value according to their business goals.
Adaptation Is the Next Frontier
As we have seen, emerging technologies create exciting new opportunities for the banking industry.
However, institutions must carefully plan how to adopt them in a way that is intelligent, profitable, and strategically aligned.
Over the past decade, banks and companies worldwide have invested trillions of dollars into innovation initiatives under the concept of Digital Transformation.
Some succeeded. Many failed. Many continue investing without clear transformation objectives.
Yet despite the promises of modernization, the concept of Digital Transformation contains two major misconceptions:
- the belief that transformation is simply about adopting new technologies;
- and the belief that there is a final destination — a clear “before” and “after.”
Today’s reality shows otherwise.
The pace of change will never slow down.
Market dynamics, competition, and customer expectations will continue accelerating, and the need for transformation will never truly end.
The most innovative leaders now understand that Digital Transformation alone is no longer enough to thrive.
Instead, success depends on learning how to continuously adapt: how to respond quickly, creatively, and effectively to an increasingly rapid and permanent pace of change.
Being adaptive requires understanding the true nature of adaptation and its implications for the financial industry — both organizationally and personally.
An excellent first step is downloading the exclusive e-book: “The End of Digital Transformation and the Beginning of the Era of Infinite Adaptation”, written by Chris Colbert, Former Managing Director of Harvard Innovation Labs and Chairman of the Board of Fintech Americas.
DOWNLOAD WHITEPAPER