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Banking Technologies in 2024: Staying Ahead of the Curve

Team Kissflow

Updated on 25 May 2024 10 min read

In the rapidly evolving digital landscape, technology has become a critical component for delivering effective services to customers in the banking industry.

To stay competitive, banks must leverage the power of innovative technologies to enhance customer experiences, optimize operations, and drive growth.

According to industry reports, global banking IT spending is projected to reach $761 billion by 2025 [1], underscoring the significance of technology investments in the Banking sector.

As technology plays a pivotal role in shaping the future of banking, IT analysts, managers, VP, and CIOs face unique challenges in identifying the right solutions to implement.

The complexity of the technology landscape, the need to balance cost and effectiveness, integration hurdles, and the paramount importance of security and regulatory compliance present formidable obstacles.

Integrating new technologies with existing systems is one of the top challenges in implementing digital transformation initiatives.

Furthermore, the banking industry faces its own set of distinct technology challenges. Legacy systems, data management and analytics complexities, security concerns, compliance and regulatory requirements, and integration challenges are just a few examples.

These challenges necessitate adopting innovative solutions tailored to the industry's specific needs.

This blog aims to explore the latest banking technologies, shed light on the challenges faced by the industry, and highlight how emerging technologies can help mitigate these challenges.

By delving into the potential of cutting-edge solutions, we provide valuable insights and thought leader perspectives to help IT leaders in the banking industry make informed decisions and navigate the complex landscape of banking technologies.

Tech Dilemma: The challenges in selecting the right Banking Technologies

The banking industry faces unique technology challenges that impact its operations. Navigating the vast array of technology options can be overwhelming. IT analysts, managers, and CIOs must address challenges such as:

Complexity:  The banking technology landscape is diverse and continuously evolving, making it difficult to choose the right solutions that align with the organization's goals.

Cost-Effectiveness: Balancing cost and effectiveness is crucial. While cutting-edge technologies may offer enticing features, the cost of implementation and maintenance must be carefully evaluated. 

Integration: Banks often face challenges when implementing new technologies alongside legacy systems. Seamless integration is crucial to avoid disruption and ensure smooth operations.

In fact, A survey on the top 100 banks by Accenture found that 63 percent are either moving their core banking technology to the cloud or getting ready to do so.

Security: Implementing technology solutions while ensuring data privacy and security can be challenging. 

Cybersecurity threats pose a significant risk to the banking industry. Banks must employ robust security measures to protect sensitive customer data and financial transactions.

Utilizing a VPN service is one such measure that can enhance data encryption and online privacy, safeguarding against unauthorized access.

According to the Sixth Annual Bank Survey by the Conference of State Bank Supervisors, 70% of those surveyed ranked cybersecurity as their top concern.

In a survey conducted by Gartner, 66 percent of CIOs identified cybersecurity and privacy as their top investment priority for 2023 [2].

Compliance and Regulations: Banks operate in a highly regulated environment, requiring stringent security measures and compliance with regulations like GDPR and KYC. Banks must comply with numerous regulations and reporting requirements. Ensuring compliance with evolving regulatory standards requires adopting solutions tailored to meet these specific needs.

Legacy Systems: Many banks still rely on legacy systems, making it difficult to adopt modern technologies seamlessly. Upgrading or replacing these systems is a complex undertaking that requires careful planning.

Data Management and Analytics: Banks generate vast amounts of data. Effectively managing and leveraging this data for business insights is a challenge. Advanced analytics and data governance solutions are essential to extract actionable information.

According to the Global Transaction Banking White Paper, 62% of Banks agree that Big Data solutions are critical to their success.

Must have banking technologies in 2024:

The banking industry is undergoing a significant transformation driven by advancements in technology. Digitalization, automation, and data-driven insights have become key focus areas for banks looking to enhance customer experiences, streamline operations, and gain a competitive edge. Here's an overview of the current state of technology in the banking industry.

Digital Banking:

The rise of digital banking has changed how customers interact with their banks. Mobile banking apps, online portals, and self-service options have become the norm, providing customers with convenience and real-time access to their accounts. Digital wallets carrying credit cards and digital currency like Render, Ethereum and Bitcoin are ever more prevalent. According to a report by Economic Times, digital banking transactions are projected to reach $1 trillion by 2023



Hyperautomation combines robotic process automation (RPA) with AI and ML capabilities to automate complex business processes end-to-end. Banks can leverage hyper-automation to automate repetitive and rule-based tasks, such as data entry, document processing, and customer onboarding. By automating these processes, banks can reduce errors, improve operational efficiency, and free up employees to focus on higher-value activities.

Low-Code Development:

Low-code development platforms like Kissflow enable banks to build applications with minimal coding requirements, accelerating development and reducing reliance on traditional coding methods.

These platforms provide visual interfaces, pre-built templates, and drag-and-drop functionalities, allowing both technical and non-technical stakeholders to participate in application development.

Banks can leverage low-code development to quickly create custom applications, streamline internal processes, and deliver innovative customer experiences.

Artificial Intelligence (AI) and Machine Learning (ML):

Banks increasingly leverage AI and ML technologies to enhance operational efficiency, detect fraud, and improve customer experiences. AI-powered chatbots and virtual assistants are being used to provide personalized assistance and support. At the same time, ML algorithms analyze large datasets to uncover valuable insights for risk assessment and customer segmentation.

Robotic Process Automation (RPA):

RPA has gained traction in the banking industry, automating repetitive manual tasks and improving operational efficiency. By deploying software robots, banks can streamline processes such as customer onboarding, data entry, and compliance checks, reducing errors and enhancing productivity.

Cloud Computing:

Banks are embracing cloud computing to optimize infrastructure costs, improve scalability, and enable faster deployment of applications. Cloud-based solutions offer enhanced data security measures, agility, and the ability to integrate with other systems, enabling banks to innovate and launch new services quickly.

Blockchain Technology:

Blockchain has emerged as a disruptive force in the banking industry, transforming areas such as cross-border payments, trading crypto in futures market, and identity verification. Its decentralized and secure nature has the potential to streamline processes, reduce costs, and increase transparency in transactions.

Data Analytics and Big Data:

Banks leverage data analytics and big data technologies to derive actionable insights from vast customer data. By harnessing data analytics, banks can better understand customer behavior, personalize offerings, and make data-driven decisions to mitigate risks and optimize operations.

Cybersecurity and Fraud Prevention:

With the increasing digitization of banking services, cybersecurity, and fraud prevention have become critical priorities. Banks are investing in advanced cybersecurity technologies, including threat intelligence, encryption, and biometric authentication, to safeguard customer data and protect against evolving threats.

Internet of Things (IoT):

IoT technologies enable the interconnection of physical devices and objects, allowing them to collect and exchange data. IoT can be leveraged in the banking industry for various applications, such as remote asset monitoring, real-time fraud detection, and personalized customer experiences. For example, banks can use IoT devices to monitor ATMs, track inventory levels, and provide personalized offers based on customers' locations and preferences.

DevOps and Automation:

DevOps practices combine software development and IT operations to enable continuous integration, continuous delivery, and faster application deployment.

By adopting DevOps methodologies, banks can reduce time-to-market for new services, enhance collaboration between development and operations teams, and improve their applications' overall quality and stability. Automation tools further accelerate the development and deployment processes, enabling banks to achieve higher operational efficiency.

Emerging Horizons: The Latest Trends in Banking Technology


The banking industry is undergoing a significant transformation driven by technological advancements and evolving customer expectations.

As banks strive to enhance security, improve operational efficiency, and deliver exceptional customer experiences, they are embracing a range of emerging technologies.

In addition to the previously discussed trends, several other banking technology trends are reshaping the industry.

These trends include biometric authentication, RegTech, open banking, payment processing, and the rise of composable applications.

Biometric Authentication:

Biometric authentication technologies, such as fingerprint recognition, facial recognition, and voice recognition, are gaining popularity in the banking industry.

These technologies provide enhanced security and convenience by using unique biological characteristics for user identification and authentication. Biometric authentication can be used as an identity verification solution for secure access to banking applications, transaction verification, and identity verification during customer onboarding processes.


RegTech, short for regulatory technology, refers to the use of technology to streamline regulatory compliance processes in the banking industry. Banks face numerous regulatory requirements, and RegTech solutions help automate compliance monitoring, reporting, and risk management.

These technologies utilize AI, machine learning, and data analytics to ensure adherence to regulations, reduce compliance costs, and minimize the risk of regulatory violations.

Open Banking:

Open banking initiatives aim to increase competition and innovation in the banking industry by allowing customers to securely share their financial data with authorized third-party providers.

Through open APIs (Application Programming Interfaces), banks can collaborate with fintech companies and other financial institutions to develop new products and services that meet customer needs.

Open banking promotes data sharing, enables personalized financial solutions, and enhances the overall customer experience.

Payment Processing:

With the rise of digital payments and customers' evolving needs, payment processing technologies are rapidly advancing.

Banks are adopting faster and more secure payment methods like contactless payments, mobile wallets, and real-time payment systems.

These technologies offer convenience, speed, and improved transaction security, enabling customers to make payments seamlessly across various channels and devices.

Composable Applications:

Composable applications refer to the modular and flexible approach to application development, where applications are built by composing pre-built components and services.

This approach allows banks to rapidly develop and deploy applications by reusing existing functionalities and integrating them with external services.

Composable applications promote agility, scalability, and faster time-to-market, enabling banks to respond quickly to changing business needs and customer demands.

Autonomic Systems:

By leveraging autonomic systems, banks can improve operational efficiency, reduce human error, and enhance customer experiences.

These systems have the capability to self-diagnose and self-correct, optimizing processes and minimizing downtime, ultimately leading to cost savings and increased productivity.

Privacy Enhancing Computation:

Privacy-enhancing computation (PEC) technologies enable banks to perform computations on sensitive data while preserving privacy. With the increasing emphasis on data privacy and protection, PEC techniques allow for secure data sharing and collaboration while ensuring confidentiality.

Banks can confidently analyze and derive insights from customer data without compromising individual privacy by utilizing cryptographic protocols and techniques like secure multi-party computation, differential privacy, and homomorphic encryption. 

Generative AI:

With generative AI, banks can analyze vast amounts of data and generate intelligent and contextually relevant responses, recommendations, and financial insights. This technology has the potential to revolutionize customer interactions, product innovation, and risk management in the banking sector.

Banking CIOs: Prioritizing Technology Investment in Banking for 2023

Banking CIOs often face the challenge of identifying the right technology investments to drive innovation, enhance customer experiences, and ensure regulatory compliance. As technology continues to reshape the banking industry, CIOs must prioritize their investments strategically to stay ahead of the curve.

To navigate the dynamic landscape and harness the power of emerging technologies, banking CIOs need to focus on key priorities.

Develop a Technology Roadmap:

Create a strategic roadmap that aligns technology investments with business goals, enabling a phased approach to implementation and ensuring scalability and agility.

Optimize IT Infrastructure:

Modernize legacy systems, adopt cloud computing, and explore infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) models to improve scalability, flexibility, and cost-effectiveness.

Implement Agile Methodologies:

Embrace agile methodologies, such as DevOps, to accelerate software development, improve collaboration, and quickly respond to changing market demands.

Explore Partnerships and Ecosystems:

Collaborate with fintech startups, technology vendors, and industry partners to leverage their expertise, accelerate innovation, and expand service offerings.

Keep Regulatory Compliance in Focus:

Stay updated with regulatory changes and invest in RegTech solutions to ensure compliance, streamline reporting processes, and mitigate operational and reputational risks.

How to choose the right banking technology?

Choosing the right banking technology is crucial for CIOs and IT managers in large banks. It requires careful consideration and adherence to best practices to ensure the technology aligns with the bank's goals, provides a secure environment, and meets regulatory requirements. Here are some best practices to follow while selecting banking technology.

Embrace Digital Transformation:

Banks that have successfully overcome technology challenges have embraced digital transformation as a strategic imperative. They have modernized their legacy systems, implemented customer-centric digital platforms, and integrated innovative technologies. Banks can enhance customer experiences, streamline processes, and drive business growth by leveraging digital capabilities.

Prioritize Data Governance:

Data is a critical asset for banks, and ensuring its integrity, security, and compliance is paramount. Banks that have overcome data-related challenges have prioritized data governance initiatives.

They have implemented robust data management frameworks, established data governance committees, and enforced data quality standards. 
Banks should invest in data governance frameworks, establish data stewardship roles, and implement data quality management processes.

Banks can make informed decisions, improve risk management, and drive better business outcomes with a solid data governance foundation.

Adopt Agile Methodologies:

Traditional waterfall project management approaches can hinder banks' ability to adapt quickly to changing technology landscapes. Banks that have successfully navigated technology challenges have embraced agile methodologies. They have adopted agile practices like iterative development, cross-functional teams, and continuous delivery. 

By adopting agile practices, banks can accelerate product development, respond to customer needs more effectively, and reduce time-to-market for new services.

Implement Robust Security Measures:

With the increasing sophistication of cybersecurity threats, banks must prioritize robust security measures to protect customer data and maintain trust.

Successful banks have implemented multi-layered security strategies, including advanced authentication methods, encryption technologies, and real-time monitoring systems.

Banks should invest in state-of-the-art security technologies, conduct regular security assessments, and establish a strong security culture across the organization. Banks can mitigate risks, protect customer data, and maintain regulatory compliance by implementing robust security measures.

Developing Technology Roadmap:

Banks should develop a comprehensive technology roadmap aligned with their business objectives to navigate the complex technology landscape. This roadmap should outline the strategic priorities, technology investments, and implementation plans. 

Banks should conduct thorough technology assessments, identify key areas of improvement, and develop a roadmap that prioritizes initiatives based on business impact and feasibility. Banks can align their technology investments with business goals and ensure a structured approach to technology adoption by having a clear technology roadmap.

How do major banks in Southeast Asia harness the Power of low-code technology?

A leading Philippine bank with 900 branches in Southeast Asia transformed its operations with Kissflow. With over 18,000 users and 70+ automated processes, the bank streamlined financial operations, including remittances, credit approvals, HR workflows, and more.

Kissflow enabled faster turnaround times, improved transparency, and increased productivity, driving digital transformation in the organization. The digital-only bank, offers seamless digital experiences to customers across multiple channels.
Banks should prioritize digital transformation initiatives by investing in modern technologies, creating a culture of innovation, and fostering partnerships with fintech companies.

Softbank, a Japanese multinational investment holding company, faced challenges with manual processes, delayed approvals, and increased costs. However, their transformation began in 2016 when they adopted Kissflow. 

The user-friendly platform and mobile app streamlined operations across their offices, improving efficiency and reducing effort. Executives could easily approve requests on the go, and creating applications took minutes instead of hours.

Softbank experienced significant cost savings by replacing expensive tools with Kissflow's affordable solution. With quick adoption, rapid app development, and seamless support, Softbank Telecom achieved remarkable results and plans to expand Kissflow implementation to their subsidiary offices.

Banks should embrace agile methodologies to enhance flexibility, collaboration, and speed-to-market.

Check out how major banks transform their operations with Kissflow

Kissflow’s Low-Code/No-Code Solution for Banking

Low-code, no-code platforms, like Kissflow, are gaining traction in the banking industry due to their ability to efficiently address IT and business backlogs. These platforms enable business users to build applications rapidly with minimal coding, reducing the dependency on IT teams and accelerating time-to-market.

Kissflow's low-code platform for banking offers an intuitive interface, drag-and-drop capabilities, and pre-built templates tailored to the banking sector's unique needs.

The banking & financial service industry faces unique challenges in identifying and implementing the right technology solutions.

By staying abreast of emerging technologies, prioritizing strategic investments, and leveraging low-code, no-code platforms like Kissflow, banks can overcome these challenges and drive digital transformation.

Successful adoption of technology solutions will enable banks to enhance customer experiences, optimize operations, and remain competitive in an increasingly digital landscape.

To learn more about the state of app development in the banking industry, check out this eBook: https://kissflow.com/ebooks/transforming-app-development-in-banking