While industry players have noted the emergence of fintech “ecosystems” to lock in customer relationships, others point to embedded “experiences” based on data.

Executives at the New York-based Depository Trust & Clearing Corporation (DTCC) suggest 2020 will see both of these developments take shape, supported by API connectivity and a heightened sense of security.

Mike Bodson, president and CEO at DTCC, said he expects financial services to be transformed in 2020 by APIs.

“The move to digital platforms and the development of APIs will better enable data to flow seamlessly between systems and provide clients with the flexibility to conduct business tailored to their needs,” he explained. “One of the top issues the industry and regulators will need to address is developing rules for the post-trade processing of tokenized securities to protect market stability.” 

There are signs of those trends catching on at big banks. JPMorgan Chase recently announced a data-sharing agreement with aggregator Envestnet Yodlee in an effort to enhance customer control over their account information, and Wells Fargo earlier this year entered into an agreement with aggregator Plaid to allow for seamless connections to third-party apps.

See also: Rebundling of services to continue in 2020, BMO’s Ben Schack says

Meanwhile, Susan Cosgrove, chief financial officer at DTCC, emphasized that she would like to see the role of other chief financial officers evolve to facilitate improved implementation of tech strategies.

“CFOs have an important strategic role to play when it comes to the adoption of new technologies because we have the skillset to strike the right balance between innovation and financially-sound decision-making,” she said. 

However, Murray Pozmanter, managing director and head of clearing agency services, emphasized that the end solution should dictate innovation plans.

“A key theme for 2020 will be how the financial industry continues to progress with combining proven, stable infrastructures with new technologies, and how those projects scale for adoption in high-volume, highly regulated markets,” he noted. “The optimal solution isn’t always the newest technology.”

Andrew Gray, group chief risk officer, agreed that 2020 would continue to see an emphasis on security and risk reduction from financial firms and policymakers. 

“Critical to achieving operational resilience is a holistic approach to risk management, built on the foundation of intelligent resilience, which means finding the optimal balance of technology, data analysis and human capabilities,” he explained. 

Bank Innovation Ignite, which will take place on March 2-3 in Seattle, is a must-attend industry event for professionals overseeing financial technologies, product experiences and services. This is an exclusive, invitation-only event for executives eager to learn about the latest innovations. Request your invitation.