The 5 Hottest Technologies In Banking For 2022 – Forbes

Chatbots will be one of the hottest technologies in banking for 2022
For readers unfamiliar with the Fintech Snark Tank, this annual list subscribes to the Deep Throat approach to ranking banking technologies.
I wish that was a porn reference, but it’s not. In the movie All The President’s Men, Woodward and Bernstein meet their informant—whom they refer to as Deep Throat—in a parking garage who tells them: “Follow the money.”
The truly “hot” technologies in banking are the ones that financial institutions invest in—not necessarily the ones the pundits talk about.
At the end of the past seven years, Cornerstone Advisors has surveyed financial institutions to find out where their technology dollars will go in the coming year. The What’s Going On in Banking 2022 study reveals some shifts in technology focus for the coming year.
The top five list for 2020 and 2021 reflected minor changes in priorities in each of those years as the same technologies were included in the list for both years, but in slightly different order.
For 2022, however, three new technologies crack the list: chatbots, machine learning, and digital loan origination systems.
Top 5 Technologies in Banking
It’s 2022—what’s taking the industry so long to implement digital account opening? This should have been done years ago. It’s not rocket science. According to Alex Johnson, Director of Fintech Research at Cornerstone Advisors and author of the Fintech Takes newsletter:
“Financial institutions ascribe too much importance to digital account opening; as if offering a great digital account opening experience will somehow magically drive customer acquisition. That’s nonsense. Putting a new coat of paint on your storefront every year won’t make sales go up if customers don’t like the product you’re selling.”
Amen, brother.
Looking ahead to 2022, one in four financial institutions plans on investing in or deploying a chatbot. To date, just 18% of banks and credit unions have made investments in chatbots.
It’s taken awhile, but the industry is coming around to the realization that chatbots—or more broadly speaking, conversational AI—have become a competitive necessity. Three requirements are driving the need for chatbots:

We’ve been hearing about how artificial intelligence—machine learning, in particular—will transform the banking industry. Few mid-size financial institutions—just 12% of banks and credit unions—have deployed these technologies so far.
Things are changing, however. One in four banks and credit unions expect to invest in machine learning tools and technologies in 2022. Two use cases are driving this surge:

What’s been holding banks back? As McKinsey explains:
“Machine-learning models amplify some elements of model risk. Although many banks have validation frameworks and practices in place to assess and mitigate the risks associated with traditional models, these are often insufficient to deal with the risks associated with machine-learning models.”
Tools and apps from companies like Zest.ai and ComplyAdvantage are helping banks overcome these challenges, helping to push machine learning into the top 5 technologies for 2022.
Although just 15% of financial institutions have deployed real-tine payments, 28% expect to launch them in 2022, with another 26% launching in 2023. P2P payments are the top use case cited for financial institutions’ faster payments programs.
One potential accelerant of banks’ P2P payments transformation is the launch of CHUCK™, an open network for instant payments from the Alloy Labs Alliance, a consortium of banks. The network will enable consumers to:
“Send money from their banking app (desktop or mobile), and let recipients choose where they want the money to go, including some of the popular payment networks. Financial institutions now have a choice when it comes to providing instant payment capabilities and don’t have to settle for an expensive, restrictive, and closed network.”
The new network—to be integrated into community banks’ mobile banking apps—will alleviate the need for consumers to move money between apps or log in to their bank account to check their balance just to transfer funds from another application.
Back in May 2018, Daryl Jones, Senior Director at Cornerstone Advisors wrote:
“Digital lending is the future, and the ability to effectively capture and engage borrowers throughout the lending process is critical. But, the momentum of banks and credit unions to move to these platforms is not as strong as many believe it is.”
Spot on.
With deposit levels soaring, however, the industry’s focus has turned once again to lending, and digital loan origination systems finally crack the top 5 list—good news for tech firms like Numerated, Blend, and Boss Insights.

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