Innovation will be the driving force in advancing key priorities such as compliance, risk and automation in 2018, according to Synechron.
The consulting and technology firm suggested that as part of increased innovation, blockchain and artificial intelligence (AI) will continue to dominate this year.
Although the main focus last year was around blockchain pilots, this year Synechron revealed that the focus will be on the production side and as a result will put a stronger emphasis on the architecture and interoperability needed to support the approach.
Also this year, firms can expect to see experience design applied to immersive technologies such as augmented reality and virtual reality, with the aim to improve customer experience.
Synechron suggested that immersive technologies, combined with natural language processing and machine learning, will redefine best practices for user experience design for both external customers and internal employees.
In terms of risk, 2018 will shift to more enterprise-wide risk management techniques. To match the increasingly fast-paced environment of financial services, Synechron has explained that firms will need to improve instant risk analysis, supported by AI, to fulfil the changing needs of the organisation.
With 2018 being a year of major regulation change, Synechron predicts that regulation technology will have a vital role to play as firms move beyond initial second Market in Financial Instruments Directive to gain more long-term benefits from the regulation and take a tech-first approach to their compliance with newer regulations, such as the Fundamental Review of Trading Book and Consolidated Audit Trail compliance.
In 2017 firms began preparing for data standardisation, however, Synechron expects to see firms moving past legacy data architecture and infrastructure systems this year.
This year saw the introduction of General Data Protection Regulation and the second Payment Services Directive, which both involve a new data infrastructure.
Faisal Husain, co-founder and CEO at Synechron, said: “2018 will continue to be an exciting and dynamic time for financial services. We expect that this year will see the culmination of some key technologies that aim to provide more effective methods of doing business, whether that is more intelligent AI, a more comprehensive use of blockchain or even business compliance ahead of Brexit. We cannot wait to see what 2018 will bring and look forward to leading the way on all these fronts.”
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