Blockchain, automation, artificial intelligence (AI) and cloud services are set to radically overhaul the contemporary banking business model, part of what some in the industry have branded the "fourth industrial revolution".
The adoption of new technology will have a
profound and lasting impact on banking sector's services, employment, and profit model, boosting margins which have been driven down by the rise of a new
generation of fintech firms.
The shake-up will lead to a radical
reordering of the staffing models, with machines taking over many processing
operations and data crunching duties as the lines between banking and
technology become increasingly blurred.
Automation is expected to drive down
banking costs compared to revenues by around 15 percentage points, according to
consultancy firm Oliver Wymann, who presented a detailed report on technology
in the banking sector at the World Economic forum meeting in Davos.
The banking sector is adopting new technologies such as blockchain, automation, artificial intelligence (AI) and cloud applications to boost profits, although the underlying tech poses a potential threat to traditional banking.