By – Michael Devlin, SVP – Business Development, iGCB, Intellect Design Arena
In just 5 weeks Credit Unions from around the world will be attending the World Council of Credit Unions Conference 2023. I’m excited to attend with my Intellect colleagues to demonstrate how their world is about to change for the better!
The Five Transformative Waves of Banking Technology
Technology has revolutionized the banking industry through five waves of transformation, presenting both opportunities and challenges. The transition between these waves has proven difficult for many banks and Credit Unions due to the complexities of technology and the acquisition of disparate assets over time. However, Credit Unions that embrace the opportunities presented by the fifth wave can position themselves for success in the years to come. By prioritizing technological advancements, such as a digital banking platform and mobile banking solution, Credit Unions can stay ahead of the competition from banks and Fintech companies while meeting the evolving needs of their members.
Why BankTech Waves? These waves are named for their collaborative behavior, as they operate together rather than in isolation. Each wave builds upon the previous one, creating a continuous cycle of support and reinforcement.
BankTech Wave 1: Mainframes and card systems were introduced during this wave to facilitate record-keeping, general ledger, and accounting.
BankTech Wave 2: The advent of mini-computers and terminal desktops enabled branch automation and back-end operations.
BankTech Wave 3: Banks were able to expand beyond their physical branches by utilizing server-based software accessible over networks.
BankTech Wave 4: With the emergence of the Internet, digital channels became prevalent. Companies like Amazon started utilizing the internet for purposes beyond email and search, and the development of mobile apps became possible through Service-oriented Architecture (SoA) and object-oriented programming.
BankTech Wave 5: The current wave began with the rise of cloud computing, leading to the development of marketplaces and ecosystems that bring together various services and applications. This wave has fostered greater connectivity, collaboration, and the emergence of new business models and opportunities.
In this fifth wave, the technology scale is no longer a barrier to competitiveness. Credit unions no longer require IT budgets in the range of millions of dollars. The evolution of Micro Services and APIs, which are composable and truly multi-tenant based, allows credit unions to “Compose or Curate their own Credit Union” and embrace the future.
In my next post, I will explain how Intellect can assist you in composing your own Credit Union and partner marketplace using our eMach.ai platforms, empowers to launch modern banking platforms and core banking solutions, as well as SME lending solutions.
Intellect is proud to participate as a Silver Sponsor at the 2023 World Credit Union Conference, taking place from July 23-26, in Vancouver, Canada. Join us at Booth No.103 where our experts will showcase how our open finance enabled platforms can enable credit unions to stay ahead of the curve and deliver exceptional digital banking experiences to their members.
Book a meeting here: https://www.igcb.com/events/wccu2023/