house 
technology
Bankers around the world point to a shift in strategy. While cost optimization remains the top priority, compliance with regulations and innovation that enhances its competitiveness is gaining focus. This comes against the backdrop that artificial intelligence has become as prominent as cybersecurity in banks, and recruiting AI talent is considered the most challenging. These findings are part of the insights revealed in the fourth edition of the Infosys Bank Tech Index.
Efficiency still matters, but commitment and innovation score
Globally, banks have focused on cutting costs in the past year. Until recently, banks in the United States turned to cost optimization when faced with a liquidity crunch due to deposit flight that led to a contraction. Net interest marginseven while Non-performing assets It was flowing.
Regulatory compliance has become a top priority for banks as they navigate an increasingly complex regulatory landscape related to artificial intelligence, agility and open banking. Banks continue to invest in technologies and processes designed to ensure compliance with regulations, protect their operations and enhance customer confidence.
On the other hand, innovation is driven by the need to maintain competitiveness in a rapidly changing market. Infosys Bank Technology Index Emphasizes the importance of innovation in driving growth and excellence. For example, Citibank It has embraced blockchain technology for cross-border payments, significantly reducing transaction times and costs.
Moreover, the interplay between innovation and compliance is reshaping the future of banking technology. While innovation fuels growth and excellence, compliance ensures stability and trustworthiness. Banks are increasingly investing in technologies that enhance their capabilities and ensure compliance with regulatory standards. This balanced approach is crucial to navigating the complexities of modern banking.
Talent is hard to find
There is a shortage of skilled talent, and competition for this talent is intense. in europe, Nearly half of the companies Struggle to hire people with STEM talent (science, engineering, technology, and mathematics). In the United States, 45% of STEM employees with doctoral degrees are foreign born. Australia embodies this challenge; The country aims to train 1.2 million technology workers by 2030, but currently faces a shortfall of about 160,000. Skilled professionals.
Banks are struggling to find the right talent in this competitive market. They are competing with each other, fintechs, and big tech companies to fill this limited talent pool. Although factors such as a bank’s size and longevity determine customer loyalty, today’s customers prioritize convenience and digital excellence. To achieve these expectations, banks must continuously innovate while collecting and analyzing data effectively.
However, building the right technology stack requires talent with diverse experiences – and can be difficult to scale and scale to meet requirements.
Partnering for improved results
Banks are moving towards continuous learning initiatives and strategic partnerships to effectively bridge the talent gap and drive innovation. For example Barclays Bank Digital Eagles Program It aims to raise employees’ skills in digital skills and cybersecurity. Such platforms can provide employees with ongoing access to the latest training resources, allowing them to stay up to date on the rapidly evolving fields of artificial intelligence and cybersecurity. These platforms can be tailored to suit the bank’s specific needs, ensuring that employees receive appropriate practical training. Another example is ANZ Bank. The bank plans to train 3,000 leaders to accelerate widespread AI adoption at its new AI Centre. While training is a great way to close the talent gap, building an employee training and training program requires resources and time.
Partnerships also play a critical role in enabling banks to quickly adopt new technologies while mitigating the associated risks. Collaborations foster the cross-fertilization of ideas between diverse teams, leading to innovation through shared experiences. Infosys has trained more 250,000 employees Across departments in Generative AI – an initiative that exemplifies how diverse skill sets can lead to richer outcomes tailored to societal needs. Moreover, banks are increasingly collaborating with specialized companies to meet specific technology needs; For example, a bank partnered with a cybersecurity company to effectively validate its AI systems against regulatory guidelines.
The central role of artificial intelligence
The subtle shift from cost optimization towards regulatory compliance and innovation reflects broader trends that are reshaping banking strategies across regions. Increased investment in AI technologies coupled with challenges around talent recruitment require a comprehensive approach that prioritizes training and collaboration.
Banks that adopt an AI-first strategy achieve more robust results. By integrating AI into their operations, these organizations can achieve continuous cost transformation while simultaneously enhancing organizational agility. Early adopters such as DBS Bank in Singapore They report improved operational efficiency and flexibility, enabling them to seize growth opportunities from market volatility while ensuring regulatory compliance.
For banks to address the trinity of costs, compliance, and innovation, they must adopt a balanced approach that integrates technological advancements with strategic workforce development initiatives.
A culture of continuous learning combined with partnerships can position banks for sustainable growth while maintaining customer confidence in an increasingly complex regulatory environment.
About the author
Senior Vice President and Industry Head of Financial Services EMEA
Jay Nair He serves as Senior Vice President and Head of Financial Services for Europe, the Middle East and Africa. In addition, he also leads the UK Public Service business for Infosys. He is also part of the supervisory board of Stater (which is the largest independent comprehensive service provider for the mortgage market in the Benelux countries). He lives in London, United Kingdom. He has spent nearly three decades in engineering – both in process control engineering and since 1999 in the banking, financial and insurance sector. Jay has extensive experience in business and technology consulting, practice development, engineering, and enterprise-level technology program management. He has led global teams and programs in the Americas, Europe, India, China, Latin America, and the Asia-Pacific region. He has postgraduate qualifications in both software engineering and business administration.
