Cornerstone Advisors surveyed 260 community-based bank and credit union executives for their What’s Going On In Banking 2021: Recovering From the Pandemic study. Forbes cited this study to decipher the hottest technologies in banking going in to 2021 which are:
- Digital Account Opening
- Application Program Interfaces (APIs)
- Video Collaboration
- Person-to-Person (P2P) Payments
- Cloud Computing
Digital Account Opening
Digital Account Opening has been the most popular technology for four years in a row. A third of banks and credit unions have implemented a new consumer digital account opening system in the past 3 years and almost half of banks plan to add a consumer digital account opening system in 2021. Commercial digital account opening systems are also expecting increases in number of banks as well as credit unions.
Application Programming Interfaces (APIs)
APIs ranked fifth in Cornerstone’s study last year and have leaped to the #2 spot for 2021. About 25% of financial institutions are planning for new API investments. 21% of banks had deployed APIs going in to 2020 and that rose to 30% going in to 2021. APIs are expected to continually rise as approximately half of credit unions have already deployed or invested in APIs.
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The COVID-19 pandemic definitely had a hand in to influx of video collaboration tools in financial institutions. Going in to 2021, roughly 30% of banks and credit unions have deployed video collaboration tools, up from just 20% going in to 2020. The pandemic made face-to-face interaction scarce and often impossible without the use of video collaboration.
Person-to-Person (P2P) Payments
For consumers, P2P payments have been growing in popularity. However, the P2P payment replacement cycle is slowing down for financial institutions. The number of banks and credit unions that expected to select a new P2P tool has been decreased each year since 2019.
The view of cloud computing has shifted in financial institutions over the past few years to be an inevitable destination. Banks that have deployed cloud computing technology significantly increased from 2019. Half of credit unions have deployed cloud computing and 40% of banks had deployed it at the end of 2020 and is expecting to further increase in 2021.
Read the full article from Forbes here.