Forbes India – Artificial intelligence: banking on technology: the technological trends that have carved out a niche this year


With growing consumer demand for digital banking services, artificial intelligence is also at the heart of digital banking transformation. Image: Dhiraj Singh / Bloomberg via Getty Images


Technology was a major disruptor to the way banking was done just a few years ago. As the pandemic has accelerated the adoption of technology across industries and sectors, our dependence on these advancements has been magnified to a great extent. For example, the recent Reserve Bank of India Annual Report 2020-21 shows that the total digital transaction volume in 2020-21 was 4,371 crore, up from 3,412 crore in 2019-20, attesting to the resilience of the digital payment system in the face of the pandemic.

As these technological advancements continue to disrupt traditional banking methods, we see a whole new spectrum of newer and faster banking solutions. Online deposits, mobile wallets, electronic bill payments, etc. have fundamentally become a norm in the way financial transactions are carried out these days. With growing consumer demand for digital banking services, artificial intelligence is also at the heart of digital banking transformation. These advancements are mainly followed by the growth of fintech and neo-banks which make the entire banking process more convenient and hassle-free for customers.

Here are some tech trends that have defined the Indian banking system this year:

Open bank

Open banking is an important strategy for financial institutions to be competitive and grow. Banks integrate their financial solutions into third-party software and create a single interface for customers to access their bank’s services. By partnering with fintech, banks are making their services available to their customers through apps for easy payments. Online payments when ordering food from Zomato or digital payments in Uber are possible through open banking.

Block chain

To undertake risk management practices, banks are increasingly using blockchain technology which makes it difficult for hackers to extract confidential information such as customer bank details. The industry is already experimenting with the technology by replicating current asset transactions on the blockchain. It helps to improve efficiency, strengthen security and make transactions faster with lower costs.


As consumers’ dependence on cash decreases, companies such as WhatsApp, Google, Amazon are offering their payment systems. Biometric payments are shaping the way consumers make payments through their mobile devices. Payments are made within seconds of scanning their finger or facial recognition technology.

Cloud banking

Most banks have started to move towards cloud-based banking services. The cloud allows banks to synchronize the business; break down operational and data silos between customer support, finance, risk, etc. This transforms their bottom line and enables them to deliver digital experiences to customers while preserving their legacy model.

Artificial intelligence and machine learning

Banks are heavily implementing AI and ML to deliver personalized, just-in-time services to their customers. AI and ML automate banking processes and facilitate better customer service, credit and loan services. They also fight against fraud.


As voice interactions become more popular with consumers, banks will begin to offer more and more services over a voice interface. Financial chatbots save over four minutes per transaction. It will also allow banks to receive customer feedback in a simple and cost-effective manner.

Zero Trust Security Model

Conventional IT models are becoming obsolete, making banks prone to cyber fraud. A new approach to tackling this threat is the Zero Trust Security model. It is a security framework that secures the enterprise by removing implicit trust and enforcing strict authentication of users and devices across the network.

Portable devices

As more technologies come into play, existing technologies are adapting to create more interactive consumer experiences. Wearable devices like smartwatches are expected to transform the digital payment experience for customers. Gaining popularity among millennials and GenZ for portable payment devices will revolutionize the payments space.


The year was marked by increased dependence on digital technologies for banking needs. There is still enormous potential for banks to fill in the gaps to meet the expectations of their customers. More and more companies are digitizing their processes and finding more agile working methods and modernizing their functions by investing in the latest technologies. Modern banking technologies help banks collaborate and integrate their services with fintechs and neobanks to bring newer and more efficient technologies to consumers.

Consumers are also actively adopting these new technologies for better and more convenient banking experiences. As a result, more and more consumers are transacting with their banks, creating an opportunity for the creation of new technologies in the space, providing customers with the ultimate banking experience.

The writer is CEO and co-founder of Zeta.


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