NEWS
Study Reveals Banks ’ struggles with technology modernisation and industry standards
recent study conducted by IBM , in partnership with the
A Banking Industry Architecture Network ( BIAN ) and Red Hat , has shed light on the challenges faced by banks in meeting their priorities and satisfying customer expectations . This study , titled : Embedded Finance : Creating the Everywhere , Everyday Bank ,’ delves into the interactions between customers and the digital world , as well as how banks are integrating embedded finance into the financial journey of consumers using their preferred platforms .
Surprisingly , despite over 70 % of industry executives acknowledging the importance of embedded finance in their business strategies , only 20 % currently offer embedded finance solutions .
Interestingly , while 80 % of surveyed consumers currently prefer depositing their salaries and maintaining their savings with traditional banks , 16 % of respondents worldwide are already comfortable with fully digital , branchless institutions . Many consumers , particularly younger ones , are seeking enhanced engagement from their financial institutions , with 79 % of younger respondents open to receiving advice on better savings practices and 75 % receptive to guidance on investments .
Shanker Ramamurthy , Global Managing Partner Banking and Financial Markets at IBM Consulting , said : “ Banks are facing a double whammy of challenges with pressure coming from nontraditional competitors such as the big FinTechs that have set new standards for customer expectations and are eager to deepen those relationships and from regulators pushing for open banking standards to level the playing field and drive more competition . Establishing a modern hybrid cloud architecture that enables easy access to data across the enterprise , the ability to leverage the potential of emerging technologies such as generative AI , and participation in a robust ecosystem of partners is paramount to a successful banking strategy in today ’ s industry .”
NatWest Group teams up with AWS to harness the power of Generative AI
NatWest Group has announced that it is expanding its collaboration with Amazon Web Services ( AWS ) to accelerate the use of Artificial Intelligence ( AI ) – including AWS ’ s Generative AI solutions – to more rapidly drive towards its goal of helping 10 million people manage their financial well-being per year by the end of 2027 .
Data scientists and engineers from NatWest Group will work closely with specialist teams from the newly launched US $ 100 million AWS Generative AI Innovation Center to co-create responsible AI products on top of foundation models ( FMs ) available through Amazon Bedrock .
Scott Marcar , NatWest Group , Group Chief Information Officer , said : “ This is an exciting chapter in our journey to deliver sustainable growth through deep , lasting relationships with each of the 19 million customers we serve .
We ’ ve chosen to build on our existing strategic relationship with AWS and develop AI-powered financial products with a trusted collaborator who understands how we work with data at scale to keep our customers safe and secure .”
“ This is the latest evolution of our long-standing collaboration with NatWest Group to make it easier and faster to generate data-driven insights and deploy tailored financial solutions at scale ,” said Swami Sivasubramanian , Vice President of Databases , Analytics and Machine Learning at AWS .
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