LAS VEGAS, NV--(Marketwired - October 23, 2017) -
- 78 percent of Respondents Say AI Voice-based Banking Has the Potential to be Transformative in Retail Banking
- IT Security Upgrades and Programs to Modernize Systems Infrastructure and Data Centers Are Currently Underway at more than 50 percent of Respondents' Institutions
- In Addition to Survey Results, VMware Unveils Blockchain Technology Proof-of-Concept at Money 20/20
Today at Money 20/20, VMware, Inc. (NYSE: VMW), a global leader in cloud infrastructure and business mobility, shared results of a recent survey of banking professionals commissioned by VMware that explores how technology will shape the future of the banking industry. The survey revealed banks are laying the foundation for the digitization of their businesses and anticipate emerging technologies -- from IoT to biometric authentications and blockchain -- to make a substantial imprint on the industry within five years.
Results of the survey made one thing very clear -- technology will drive banks' next transformation. The question for financial institutions is no longer whether to invest in technology, but how fast they can invest. And, banks are already laying the groundwork for their digital transformation. When respondents were asked to describe their bank's core mission over a three- and five-year horizon, respondents described the bank's top business focus as "integrating digital and physical channels" and "becoming a digital leader," respectively.
Key survey results include:
Emerging technologies take center stage:
- More than 50 percent of banks with $100 billion or more in assets expect to have commercial implementations of the following major categories of emerging technology: mobile apps, APIs/open banking, artificial intelligence (AI), augmented reality, biometric authentications and blockchain -- in the next five years.
- 78 percent of respondents say that AI voice-based banking has the potential to be transformative in retail banking; about a third say AI voice-based banking could be transformative in commercial banking.
- 67 percent of respondents from banks with $100 billion of assets or more are currently implementing blockchain technology.
- Integration of new technologies into existing platforms and upgrading legacy systems are banks' top implementation challenges. In fact, 46 percent of respondents say legacy infrastructure has some impact on their institutions' ability to launch new products.
- Of bankers who say legacy infrastructure has a high impact on their ability to launch new products about half of respondents say their institutions are currently engaged in data center modernization (52 percent) and cloud computing projects (48 percent) to address the problem.
Impact of data center modernization and cloud computing deployments:
- 81 percent of respondents from banks with $100 billion of assets or more and 68 percent of respondents from banks with $15 billion to $100 billion of assets are currently implementing cloud computing technologies.
- Among banks currently considering, piloting, or implementing security upgrades, data center modernization programs, cloud computing deployments, and fintech innovations, at least 73 percent expect the initiatives to have a moderate to high impact over the next 12 months.
- 82 percent expect the initiatives to have a moderate to high impact in five years.
"The agility we achieved by leveraging cloud solutions, built on the VMware Software-Defined Data Center platform, helped our IT team become a business enabler instead of an obstacle for the business," explained Piergiorgio Spagnolatti, Head of Infrastructure, Banca Popolare di Sondrio. "With our cloud foundation in place, we are now looking at how we can deploy emerging technology -- such as blockchain -- on top of it to drive additional business value including enhanced security and improved efficiency."
VMware Unveils Blockchain Technology Proof-of-Concept at Money 20/20
At the event, VMware is also presenting how it is actively participating in advancing blockchain technology -- a distributed ledger that cryptographically store "blocks" of data -- to provide secure, reliable and scalable blockchain platforms for a variety of customers in the financial services industry.
Banks, for example, are implementing blockchains to streamline back-end processing and reduce costs dramatically. In traditional banking, there are central authorities that verify the authenticity of transactions and maintain records of them. Not only does this consolidate power in those authorities, it leaves these sources of truth open to compromise. With blockchain technology, transactions are recorded in a digital, distributed ledger and are verified by multiple decentralized parties. These multiple parties have copies of the ledger, making the blockchain data secure.
"Our research and development team has been hard at work advancing enterprise blockchain technology to solve some of the current problems around speed to finality, scalable fault-tolerance, and security. The work our research team has done over three years has produced a full blockchain environment with many industry firsts in the consensus, ledger and smart contracts layers. Unveiling this initial proof of concept is a huge step forward in our blockchain journey and one we are excited to share with our customers," said Michael DiPetrillo, senior director of blockchain technologies, VMware. "It's clear blockchain has the potential to disrupt many industries for the better, including every facet of the financial industry. We will continue to work with our customers and partners across industries to deliver solutions that help them address what's needed not only for today but in the future as well."
About the Survey
In June 2017, VMware commissioned a survey conducted by SourceMedia Research. The online survey yielded responses from 166 respondents, who were drawn from American Banker magazine's opt-in contacts, to understand their current and future outlook for business and technology, and emerging technologies in banking. The survey sample consists of banking professionals at manager levels and above at banks with at least $15 billion in assets.
- View full survey results and download the whitepaper, 'How Technology Will Shape the Bank of the Future'
- Read more about how VMware is advancing blockchain technology
- Learn how VMware is leading digital transformations in the Financial Services industry
- Visit the VMware Industry Solutions blog to learn more about how VMware is driving outcomes for customers in the Education, Financial Services, Government, Healthcare, Retail and Telco industries
- Follow VMware's Financial Services team on Twitter
- Follow VMware on Facebook, LinkedIn and Twitter
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VMware, a global leader in cloud infrastructure and business mobility, helps customers realize possibilities by accelerating their digital transformation journeys. With VMware solutions, organizations are improving business agility by modernizing data centers and integrating public clouds, driving innovation with modern apps, creating exceptional experiences by empowering the digital workspace, and safeguarding customer trust by transforming security. With 2016 revenue of $7.09 billion, VMware is headquartered in Palo Alto, CA and has over 500,000 customers and 75,000 partners worldwide.
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