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2022 | Book

Industrialise and Innovate to Deliver Banking 4.0 Services Read chapter Read first chapter

Banking 4.0

The Industrialised Bank of Tomorrow

Author: Mohan Bhatia

Publisher: Springer Nature Singapore

Part of: Springer Professional "Wirtschaft+Technik" , Springer Professional "Technik" , Springer Professional "Wirtschaft"

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About this book

This book shows banking professionals how to leverage the best practices in the industry to build a structured and coordinated approach towards the digitization of banking processes. It provides a roadmap and templates in order to industrialize the financial services firm over iterative cycles.
To achieve the planned business and revenue results at the optimal costs, the digital transformation has to be calibrated and coordinated across both the front and back office, scaled and timed against external innovation benchmarks and Fintechs. To this end, data collection and evaluation must be ingrained, banking-specific artificial intelligence methods must be included, and all digitization approaches must be harmonized on an iterative basis with the experience gained. Spread over several chapters, this book provides a calibration and coordination framework for the delivery of the digital bank 4.0.

Table of Contents

Frontmatter
1. Industrialise and Innovate to Deliver Banking 4.0 Services
Abstract
Technology has been the prime mover and enabler of banking business model evolution for the past four decades. Banks are replacing, upgrading, automating, and industrialising their information technology to build a profitable, systemic risk resilient, and cyber-secure business franchise. The banking business model has evolved with the development of technology.
Mohan Bhatia
2. Tactical Approach to the Industrialisation
Abstract
All banking processes are co-mingled with manual tasks of uneven size, type, and complexity. Second- and third-generation legacy applications at banks need numerous human interventions to complete a banking process. When legacy applications were built, technology was not sufficiently mature for end-to-end management of documents and unstructured data. Documents were extracted and captured manually. The numerous tasks of reading and capturing information from documents, managing complex data, processes, and decisions were left out for manual processing outside the applications.
Mohan Bhatia
3. Investing in Alignment of Industrialisation and Innovation Engines
Abstract
External competition, technology, banking products and services, customer preferences, and customer demands are changing at such a fast pace that banks need to keep their industrialisation and innovation engines running constantly. In the hyper-changing environment, banks need to consume innovation dose daily.
Mohan Bhatia
4. Industrialising Data
Abstract
Fourth-generation banking data infrastructure is undergoing a major shift as financial services firms are facing challenges to deliver digital experience in real time by processing very high data volumes.
Mohan Bhatia
5. Deliver Digital Experience
Abstract
Digital banking aims to deliver a digital experience through modernised and industrialised applications and hyper-personalisation engines. Digital banking is the digital delivery of customer experience, partner experience, and employee experience.
Mohan Bhatia
6. Cloud Adoption: A Foundational Engine
Abstract
In the past five years or so, cloud computing has become the key enabler for innovation at banks. Cloud is enabling banks to leverage new service models and new technology capabilities, implement microservices, and deliver API to significantly improve digital experience and business outcomes by building agility, scalability, and resiliency into the business model. It is the foundation to industrialise data infrastructure to process a very high volume of data in real-time and deliver banking AI as a service by leveraging AI platforms provided by cloud service providers (CSPs).
Mohan Bhatia
7. Industrialise to Manage Changes in the External Environment
Abstract
Every bank has different priorities, the burden of technical debt, competitive advantages, relationships with the customers, and financial metrics. Based on the strengths and strategies, banks draw up their plans for industrialisation.
Mohan Bhatia
8. Platform Banking Business
Abstract
Banks are building platforms to industrialise Front Office and Back Office technology so that they can provide financial and non-financial services to their customers.
Mohan Bhatia
9. APIs Are the Public Persona of an Industrialised Bank
Abstract
Existing data and application deployment and integration technology at third-generation banks are not sufficient to handle the expected data volume, data variety coverage, process latency, and agility requirements. What prevents the existing technology from achieving business outcomes is its ability to integrate in an agile way. Agility can be achieved only when integration capabilities are industrialised.
Mohan Bhatia
10. BIAN Framework to Build Banking AI and Semantic APIs
Abstract
We will discuss in Chap. 12 that generic AI platforms provided by several vendors have developed suites of APIs and microservices covering a wide range of AI/ML capabilities. However, the existing generic platforms are limited to the technology enablement of AI with a focus on enhancing data preparation, packaging a broad array of ML libraries, and integration capabilities to augment open-source libraries with third-party libraries.
Mohan Bhatia
11. Conversational Banking
Abstract
For the past 20 years, banks have attempted to build technology to engage customers in human and human-like conversations. They have been using call centres and IVR as voice channels for the past two decades. However, they have not been able to provide human-like conversation, mainly due to technology limitations. Conversational banking aims to change all this and enable human-like conversation with the machines of the bank, by the customers, employees, and prospective customers.
Mohan Bhatia
12. Banking AI as a Service
Abstract
AI helps to process a large volume of data, process unstructured data, simulate human-like communication both as voice and textual, automate decision making, and automate complete banking processes. The existing technology is constrained by extremely limited capabilities in processing large volumes of unstructured data and automating decision making beyond rule engines. Therefore, AI can help to complete the automation of a business process and build a machine interface for customers, partners, and employees.
Mohan Bhatia
13. Fintech: The Innovation Benchmark
Abstract
Fintechs are innovative companies that use new technology and have the potential to transform the business model of the financial sector. Fintechs hold the promise of spurring competition, providing sizeable efficiency gains and a larger and better choice for consumers, and enhancing financial inclusions. They have the potential to disrupt the business model of existing financial service firms.
Mohan Bhatia
Backmatter
Metadata
Title
Banking 4.0
Author
Mohan Bhatia
Copyright Year
2022
Publisher
Springer Nature Singapore
Electronic ISBN
978-981-16-6069-6
Print ISBN
978-981-16-6068-9
DOI
https://doi.org/10.1007/978-981-16-6069-6