The technologies banks are eyeing for future investments are in flux.

What’s on the horizon for banking? Here’s a look at the new tech that bank leaders are considering investing in, according to a recent report by Forrester Research:

• AI-powered Robotic Process Automation (RPA): RPAs follow a rigid, rule-based automation, but if powered by AI, they can operate with more flexibility and without as much human oversight. “Simple RPA has become established but is no longer enough,” Jost Hoppermann, vice president, principal analyst at Forrester, told Bank Automation News.  
• Augmented Reality (AR): AR overlays physical reality with digital stimuli, as opposed to virtual reality, which renders an entirely digital environment.  
• Data mesh: A data mesh is a decentralized management strategy in which data is co-owned by various, independent clusters of microservices so that smaller teams can access and manage it without a centralized permission process. The rules of this system still operate under the umbrella of a centralized governance that enables the clusters to interact with each other.  
• Deep Learning (DL): DL is a type of machine learning (ML) that uses multiple neural networks to independently process unstructured data.  
• Distributed ledger technology (DLT): DLT is a system in which a transaction record is simultaneously stored across multiple locations. Blockchains are among the most well-known DLTs, and they make peer-to-peer lending possible, Shuki Licht, senior vice president and chief innovation officer at Finastra, told Bank Automation News.  
• Event-driven architecture: Event-driven architecture automates the pushing of information when triggered by designated changes in state called “events.” “Event-driven-architecture (EDA) will most likely become a hot technology prior to neural networks, which – some people say – are over-promised and under-delivered,” Hoppermann noted.  
• Low-code/no-code: Low-code and no-code are software development approaches that present developers with pre-built options that let users drag and drop visually presented code bundles to create an application. No-code lies at the more extreme end by requiring absolutely no coding ability but is limited in what it can accomplish because of that simplicity. 
• Natural Language Generation (NLG): NLG translates data into text that humans can read. NLG can “automatically write portfolio commentary, saving literally weeks of time,” said Kris Hammond, chief scientist at Narrative Science, a tech company that specializes in data storytelling. 
• Progressive Web App (PWA): A PWA is a website that functions like a smartphone app, which appeals to more a younger consumer base more accustomed to navigating via their devices.  
• Service Mesh: A service mesh is an architecture that facilitates communication between various microservices.  

The following technologies are what Forrester labeled as “on the radar” in the report “The Top Emerging Technologies in Banking in 2022,” which surveyed more than 30 technology decision-makers at banks and solutions partners about their technology adoption plans:

Hot tech 

The “hot” tech that banks currently consider high priority didn’t vary much from 2021, according to Forrester, with 2022 funding going to:  

• 5G;  
• Computer vision;  
• Machine learning;  
• Natural language processing;  
• Microservices; and 
• Real-time predictive analytics.  

Don’t believe the hype 

Some tech is getting buzz — but not budgeting — from banks due to a lack of business applications or being too nascent, Forrester noted in the report. These are:  

• Advanced gamification;  
• Confidential computing;  
• Edge computing;  
• Green technologies;  
• The internet of things;  
• The metaverse;  
• Quantum computing;  
• Sophisticated chatbots;  
• Spatial computing; and  
• Virtual reality. 

Bank Automation Summit Fall 2022, taking place Sept. 19-20 in Seattle, is a crucial event on automation and automation technology in banking. Learn more and register for Bank Automation Summit Fall 2022.