The 10 digital innovations that will profoundly change the banking professions

Brett King sums up the bank’s four evolutions very well

  • Bank 1.0
    • Traditional and historical banking is centered on the bank branch as the main entry point. Begun with the Medici family in the 12th century.
  • Bank 2.0
    • The emergence of self-service banking, defined by the first attempts to log in outside of working hours. Started with ATMs and accelerated in 1995 with the Internet.
  • Bank 3.0
    • Banca 3.0 allows you to carry out banking operations when and where you need it with a smartphone and its acceleration with the transition to mobile payments, to P2P in the logic of ATAWAD.
  • Bank 4.0
    • Banking 4.0 is differentiated from ubiquitous banking services delivered in real time. It started in 2014 with the platform.
    • Massive use of AI facilitates customer identification and authentication, mimics employees in real time via chatbots and voice assistants, provides personalized information and advice.
    • Digital innovations enable banks to assess risk, detect and prevent payment fraud, improve anti-money laundering (AML) processes, and perform regulatory customer knowledge checks (KYC) at a very low cost.

Fintech competition

With the use of digital innovations, fintechs compete with banks in their traditional banking markets. For example: Peer-to-peer lending platforms are at the forefront of the fintech revolution. These platforms connect borrowers with online (e.g. private) investors who finance loans rather than with traditional financial service providers such as banks and construction companies. A unique feature of peer-to-peer platforms is that they use digital algorithms to check a borrower’s loan application and determine if it meets their credit standards. The entire digital lending process is automated, so bank “customers” don’t have to go to a bank branch.

The bankers of tomorrow will therefore be “high-tech” companies that will allow their customers to live the banking experience in a decentralized way when they want, where they want and with the equipment of their choice (ATAWAD).

For example, Apple will increasingly resemble a bank. In fact, Apple first launched into fintech with the Apple Card. Users of these cards can now get Daily Cash, Apple’s special brand on the most mundane cashback rewards, on their purchases. The promise of this “high yield” savings account is that cardholders can deposit their daily cash into it “with no fees, minimum deposits and minimum balance requirements”. Additionally, anyone with the account can also deposit funds into the new savings account from a linked bank account or their existing Apple Cash balance.

PayPal also offers a savings account with an annual percentage return of 2.45%, and Robinhood has tested similar features.

High Tech Companies.

Here are some examples of digital innovations that will be at the heart of the bank of tomorrow, namely that of “High Tech” companies such as Apple, Paypal and Robinhood.

La datefication

The “bank” of tomorrow will depend on data that provides the context for the provision of banking services in real time. With millions of customers, banking and financial institutions are arguably the most data-intensive organizations in the global economy.

Only by analyzing the data can banks truly listen to customers and create personalized financial services that will benefit from them. Result: the winning banks will be those who will be able to generate tailor-made offers and personalized experiences for their customers.


Chatbots are likely the future of the banking sector. It is a software that can simulate online conversations with people through different channels such as websites and mobile applications.

  • Chatbots act as personal digital assistants who answer customer questions in real time, provide 24/7 service, and deliver a personalized experience.
  • Additionally, an advanced chatbot can help customers with day-to-day banking tasks (like checking account balances and tracking expenses) and can even collect marketing leads and cross-sell.
  • Chatbots will save over $ 8 billion by 2022, according to a report released by Juniper.

Immersive technologies

Augmented reality

Immersive technologies such as augmented, virtual and mixed reality improve the customer experience in all areas. Augmented reality can also be used to solve many of the challenges banks face today, be it slow self-service functionality, lack of a smarter authentication system, limited customer experience outside of bank branches, or logging in. limited to information via debit and credit cards.


The Blockchain allows multiple parties to access the same data at the same time, guaranteeing the integrity and immutability of the records entered in the database. The benefits are significant. For instance :

  • Only the information required for each specific transaction is shared, while all other data remains secure on the trusted provider’s server.
  • Decentralized Finance (DeFi), the markets are always open and no centralized authority can block payments or deny access to anything. Services that were previously slow and prone to human error are automated and safer by managing code that anyone can inspect and review.
  • Knowledge graphs will have far-reaching implications for years to come. Their ability to help make associations and identify patterns across complex financial networks will impact many banking businesses.
  • Central bank electronic currencies will reshape the global financial system. The face of finance and the nature of money itself will change.

New technological bricks

The new computer

Here are some examples of the possibilities offered by the new technological bricks that will be at the heart of information systems:

  • Low-code applications created can be changed faster than high-code methods. They require less maintenance and allow you to create new applications with much less effort.
  • Open source software, serverless architecture and software as a service (SaaS) have become staples in financial institutions. With serverless computing, the cloud provider is not only responsible for managing the infrastructure, but also for scaling the applications. Serverless applications are deployed in containers that start automatically on demand.
  • Edge computing enables local analysis of bank data, which is essential for near real-time decision making. Additionally, edge computing reduces the risk of sensitive data exposure, as processing operations are performed locally. This allows companies to better apply security measures.

Automation of robotic processes

Replacing manual labor with automation not only improves efficiency but also reduces human error and enables banks to respond to fluctuations in demand.

For example, with Robotic Process Automation (RPA), banks can automate rule-based business processes and reduce personnel costs and human errors. In the future, RPA will be more deeply integrated with AI, improving its efficiency in managing more complex business scenarios and further simplifying the delivery of financial services.

Quantum computing

While traditional computers use bits and a binary system of representing information (zero or one), quantum devices store information in qubits, which can end up in a particular state, the superposition (both zero and one at the same time). This allows them to process a large amount of information much faster than conventional devices.

Quantum computers

As universal, large-scale, fault-tolerant quantum computers become available, there is a risk that all data and private information about individuals, businesses and transactions will be exposed.

Artificial intelligence

AI applications will prevail in all banking activities:

  • customized products,
  • a personalized user experience e
  • services for the analysis of the needs of each customer
  • chat interfaces,
  • market tracker,
  • automated transactions
  • robo-advisers,

API platforms

Gone are the days when banks could control the entire customer experience through a monolithic system that controlled everything from record keeping to every interaction with the customer. Furthermore, regulatory requirements have turned this huge system into dinosaurs.

Today, banks need to create ‘banking branches’ that enable them to be a platform that third-party customers and service providers can connect to to deliver a flexible and personalized end-user experience.

Portfolio of objects

The e-wallet is very secure and does not require you to enter your credit card number, security code (CVV) and expiration date.

Wallets are stored in cell phones, smart watches, or even in customer car dashboards, allowing people to pay for products directly from the device. The bank is where you need it.


In a completely cashless society, the potential of IoT in the banking sector can be unlimited with the generalization of XaaS (Everything as a Service).

In the banking sector, the integration of IoT and blockchain will especially enable risk management by ensuring that accounting records match real-world transactions, thus facilitating an entirely new trust system. The integration of banking services into the IoT will also allow banks to anticipate the expectations of their customers.