With summer vacation over and pumpkin spice everything now available, the financial services industry was served up lots of great news stories last month. In case you missed anything, we pulled together the top articles garnering attention from BizTech Magazine’s Top 25 Financial IT Blogs during August. The blogs covered topics including the latest thoughts on blockchain, the future of AI in banking, insights from Cisco on digital security, UBS moving to a new time clock for its trading, and a survey that again makes the case for banks to update their core processing technology.
Here are the highlights:
Gartner: Blockchain Tech Hits Hype Cycle Peak (Coindesk) According to an August report from Gartner, blockchain has hit the peak of its hype cycle. The key finding points out that the emerging technology is at a stage in its development where users and the public are suffering from “inflated expectations” about its benefits. Gartner’s report also projects blockchain will come to be “transformational” across a variety of industries, and it forecasts that this transition is only between five and 10 years away.
AI’s Disruption of Banking Is Inevitable — For Better or Worse (BankThink) The promises of AI and robotic banking are impressive. The ability to have core banking functions run entirely by machines that automate and learn to self-improve will transform bank back offices and systems. If combined with the ability to interact with customers — including learning their typologies and meeting their banking needs — the potential is incredibly powerful and lucrative.
Go Digital Securely and Fast (Cisco Financial Services Blog) With the continued growth of digital banking, many consumers are growing concerned about identity theft and protection of their assets. While digital banking does offer added convenience for customers and helps banks reduce operational costs, these banking models are only sustainable if they are secure and consumers have confidence in that security. Cisco’s Midyear Cybersecurity Report (MCR) provides updates from Cisco security researchers on the state of security from the first half of the year.
UBS Synchs Trading Infrastructure to NPL Atomic Clock (Finextra) UBS has signed a deal with the UK’s National Physical Laboratory for a trusted timestamping service that operates independently of GPS timing, removing susceptibility to jamming, spoofing, urban canyon effects and space weather during high-frequency trading. UBS is the first big bank to switch over to the new clock, viewing it as a route to compliance with the MiFID II RTS 25 timing traceability requirement.
NTT Says New Core Banking Systems are Coming. Really. It’s time for banks to change their legacy core systems, according to NTT DATA Consulting. Most large banks are running on legacy systems that are 30 or 40 years old and calculate transaction balances in overnight batch processing — not a great match for smartphone-carrying customers who want to see balances in real time and do their research and transactions while on the move. See more of NTT’s latest survey findings.
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