In an environment where data has become the main asset and agility the greatest differentiator, financial institutions are facing a crossroads: adapt or fall behind.
Systems that were once considered robust now need to be not only more efficient but also more flexible and personalised to respond to a hyperconnected world where user expectations evolve as rapidly as the tools banks must implement.
Aware of this new paradigm, financial institutions have already realised that the only way forward is modernisation: according to a recent study by the consultancy IDC, 98% of banks plan to undergo a digital transformation process in the next three years.
The report also highlights the importance of cloud technology for financial institutions, with 53% of banks globally indicating that they will deploy more than 40% of their workloads in cloud environments.
In this scenario of accelerated transformation, emerging technologies have become the cornerstone upon which the new financial paradigm is being built.
AI: The Engine of Change
Artificial intelligence (AI) has emerged as an essential pillar in the modernisation of financial institutions, transforming key processes ranging from customer service to risk management.
Its use is growing exponentially: according to a forecast by Juniper Research, spending on generative AI in the financial sector will increase by more than 1,400% by 2030, reaching $85 billion.
What drives such a dramatic increase? Banks have recognised that adopting AI-centred strategies is the key to achieving successful business models in an increasingly dynamic and demanding market.
AI’s ability to analyse vast amounts of data in real-time enables institutions to detect behavioural patterns, which is crucial for preventing fraud and improving security.
A clear example is the use of AI in detecting suspicious transactions, where advanced algorithms can identify anomalous movements that would go unnoticed by traditional systems.
Additionally, AI-powered virtual assistants, such as chatbots, have drastically improved the customer experience, offering 24/7 support and resolving queries instantly.
In personalised banking, AI allows institutions to offer financial products tailored to individual customer needs, enhancing loyalty and improving financial decision-making.
These benefits translate into greater operational efficiency, cost reduction, and a smoother and more secure banking experience for the end user.
Finance 2.0
The technologies being adopted by financial institutions on their digital transformation journeys are numerous and varied.
Blockchain, for example, is key to ensuring secure and transparent transactions, reducing intermediaries, and facilitating cross-border payments.
Data analytics allows the analysis of large volumes of information in real-time, optimising decision-making and improving service personalisation.
The Internet of Things is beginning to transform areas such as insurance, through the use of connected devices that enable personalised products based on real-time data.
But undoubtedly, one of the strongest trends in the sector is the migration of banking infrastructure to the cloud, which has enabled greater operational agility, with the ability to scale resources according to demand.
Cloud environments facilitate collaboration between different areas of an organisation, improve data accessibility, and allow for better integration of new technologies.
They also significantly reduce costs associated with maintaining physical infrastructure and enhance security by implementing more robust cybersecurity solutions.
These technologies are not only improving the operational efficiency of banks but also creating new business opportunities and innovative ways to interact with customers.
BPI Financial Group: A Case of Effective Digitalisation
The case of BPI Financial Group Limited, one of the most important financial institutions in Singapore, symbolises the successful path of an organisation that left behind its outdated systems and incorporated a modern technology platform that allowed it to connect its local clients with global markets.
With the increasing speed and complexity of business, BPI needed a set of integrated digital tools to automate, track, and optimise its accounting and financial operations.
After evaluating several proposals, they chose SAP Business One, which included all the features the company needed at the time. To implement the solution, they turned to Axxis Consulting, a SAP partner and member of United VARs, which accompanied them from the start to the completion of the project.
“The proactive team at Axxis identified our priorities and implemented SAP Business One to meet our needs at a competitive price, with fast and constant support,” explains Coco Chan, Finance Manager at BPI Financial Group Limited.
The new system allowed the Singaporean financial company to optimise document tracking and management and solve the issue of foreign currency revaluation in international transactions.
In short, through the digitalisation of its business processes, BPI improved its productivity, reduced costs, and began to offer faster and more efficient service to its clients.
Customer-Centric Focus
The digital transformation of the financial sector is an ongoing process. Technologies are just the beginning of a journey where innovation will be the rule, not the exception.
However, the true measure of success in this transformation lies not in the sophistication of the algorithms or the speed of transactions but in the sector’s ability to maintain and strengthen customer trust.
In a future where data is as valuable as money itself, the responsibility in its handling will be as crucial as financial soundness.
The challenge now is to navigate this new paradigm without losing sight of the fundamental goal: to better serve the people and communities that rely on the financial system.
stronger than one