The Future of Banking

Banking and banking technologies are shaping the way companies condone business in 2018 and beyond. David Reiling, CEO of Sunrise Banks, and Brandy Camacho curriculum lead for the blockchain developer nanodegree at Udacity share their thoughts on the future of banking.

Biggest Problems in Banking

Navigating Compliance and Regulatory Changes

There are three challenges with regulatory compliance – first, there is a vast amount of gray area surrounding financial industry regulations. Second, staying on top of changing rules and regulations is extremely difficult. Third, financial institutions continue to do business under a cloud of regulatory uncertainty that is expected to a challenge for the foreseeable future. In this environment, many banks are trying to keep in alignment with what is anticipated from a risk and business perspective. One method to create this alignment is to create deliberate linkage between regulatory strategy; business strategy; and building infrastructure for governance, regulatory reporting, and risk management that is flexible and scalable.

Mitigating Cyber Risk

Cyber risk is a top concern for financial services risk managers and staying ahead of changing business needs and addressing threats from increasingly more sophisticated actors are top challenges for banks. This is driven by greater interconnectedness in the banking ecosystem, rapid adoption of new technologies, and continued reliance on legacy infrastructure designed for a different age.


In response, banks continue to increase funding for cybersecurity and recruit specialized talent into their cybersecurity units. Efforts continue to make sure that cyber risk is baked into the bank’s operations, including building a robust culture of due care across the organization, and ensuring that cyber security is a key consideration in the design of business processes, strategy, and innovation.

Technology Management

Banks looking to become more agile and remain or become more efficient are increasingly reducing and managing their portfolio of technology assets that support activities that differentiate the bank and externalize technology focused on generic functions with a focus on cost and resource efficiencies. More banks are developing a fintech partner strategy when fintechs can deliver rich lending, payments, and/or deposit user experiences on behalf of the bank and are becoming more disciplined in selecting technology vendors, with greater emphasis on high-quality software asset and business expertise.


Return to Blog Index