The Banking Executive Magazine - January 2023 Issue

Technology Outlook 2023 • EHANCING OBSERVABILITY: Observability is based on explor- ing patterns in cloud data not de- fined in advance. In 2023, data will be collected from sensors and used to instrument operations truly harnessed for business value with the design pattern in observability showing the way. • COMPETING PRIORITIES: As we enter 2023, company-wide technology decision-making is very important. Banks and finan- cial institutions must prioritize re- ducing costs, but they are finding themselves pulled between con- trasting concerns of managing spend, dealing with security risks, and fostering innovation. • TECH AUDITS WILL DETERMINE WINNERS AND LOSERS: Banks and financial institutions will be auditing their technology. In 2023, the biggest wins will come from software that provides a suite of applications instead of single, unintegrated point solu- tions. • DATA WILL DRIVE DECISION-MAKING: With heightened scrutiny of budg- ets and Return on Investment ROI, measurement and reporting is key. The ability to democratize data analysis across an organization will allow teams to continue to deliver critical insights while keeping costs down. • ANALYTICS WILL GO MAINSTREAM: In 2023 more analytics will be conducted than ever before. Today’s terminal devices are al- most as powerful as low-end servers, and the increasing avail- ability of 5G networks has enabled the transmission of more data at higher speeds. As more data is pushed to the edge, it will enable real-time decision-making in the field, shorten response times, and reduce cloud infrastructure's com- pute, storage, and network costs. For these reasons, along with lower technical barriers, there will be greater interest in analytics at the edge in 2023. • PRIORITIZING THE CUSTOMER EXPERIENCE: Customer experience will matter even more than in 2022. In a down economy, customer experience is even more important for com- pany’s success. • IT SUSTAINABILITY AND COST REDUCTION: As remote work remains a constant heading into 2023, IT sustainability will be important. Around 70% of the carbon footprint of a laptop comes from the manufacturing process. A key concern for banks and financial institutions is how their organizations can more effi- ciently reuse, repurpose, and re- fresh IT equipment. CONCLUSION AND THE FUTURE AHEAD 2023 will be particularly difficult for companies that either do not under- stand what market they are in or pull back too hard on demand generation funding, allowing their competitors to move around them. There will be a smaller pool of available spending fund. Whether the world falls into re- cession or not, the next 12 months are likely to be difficult. Even if a global recession is averted, many countries could still endure down- turns accompanied by painful rises in unemployment. Technology will be key for banks and financial institutions to survive if ap- propriately understood, imple- mented, regulated, and deployed in a responsible way. the BANKING EXECUTIVE 14 ISSUE 169 JANUARY 2023