The Banking Executive Magazine - January 2023 Issue

Technology Outlook 2023 to tie data insights derived from normal Information Technology IT operations directly to business out- comes to avoid the risk of being overtaken by more innovative competitors. Full observability of business outcomes is important, as a significant problem with moni- toring has always been too much data with too little context and business correlation. The evolution of application monitoring toward full observability will increasingly provide a view relative to business context. This can dramatically speed up response and optimize business operations in real time. In 2023, business context will be- come widely recognized as an in- tegral part of monitoring and visibility outcomes. In 2023, there will be a significant shift toward the open-source ability to grab in- formation from multiple domains. • INNOVATION AND SUSTAINABILITY: Responsible innovation will move fast toward building a better, more inclusive future for all. Banks and financial instittions will have to de- fine a purpose that goes beyond profitability with responsibility, sustainability, equity and inclusion as guiding themes. Net zero will drive common standards to meet sustainability goals with advance- ments in Power Over Ethernet (PoE) design and hardware to trans- form data centers for a more sus- tainable future. Networking and APIs will become more advanced within data center platform man- agement to monitor, track, and change the use of energy. • BREAKING SILOS: The winners in 2023 will be those armed with the right tools to break down organizational silos across domains and disciplines and work together without limits to affect real and lasting change. • TECH REGULATION: Government regulation, especially in cryptocurrency, is likely to be very crucial in 2023. The Markets in Crypto-Assets (MiCA) Regula- tion, the European Union EU’s leg- islation for governing digital assets across member states, is expected to come into force in early 2023. The law aims to maintain financial stability and protect investors while also promoting the transfor- mation in the crypto asset sector. the Digital Services Act (DSA) will definitely come into force. The DSA legislation is essentially aimed at social media companies and is intended to tackle online hate speech and disinformation, protect children and prevent consumer fraud. • UPLEVELING HUMAN CAPITAL: While low-code/no-code tools will make it easier and faster to adopt digital technologies in traditional business processes, people will not be replaced by technology any time soon. • NEED FOR NEWVALUE METRICS: The key to helping banks and fi- nancial institutions gain a greater understanding of IT technologies, practices, goals, and limitations is the ability to translate technology initiatives into bottom-line value metrics. • SMART INVESTMENTS WILL LEAD TO INNOVATION IN 2023: Investment in 2023 will be focused on practical investments that ac- celerate digital expansion and IT innovation and that will actually pay off in 2023, not the future. • CATERING FOR THE CITIZEN DEVELOPER: Team members in organizations are utilizing low-code technologies and IT team had nothing to do with it except providing employees with the low-code tool. This is the start of an influx of citizen developers in every company. In the future, IT teams will intervene to address complicated problems while team members in non-technical roles from throughout the organization can take the lead in developing tools that best meet their needs. ISSUE 169 JANUARY 2023 the BANKING EXECUTIVE 13