Chapter 10 transforming LegaCy Banking appLiCations to Banking experienCe pLatforms Main Trends in Digital Banking This section discusses the main technology and business trends in banking. Technology-Related Trends The key technology related trends are as follows: • Artificial intelligence: AI technologies can be used in variety of tasks such as rules-based automation, providing personalized recommendations, learning user preferences, providing virtual assistance, customer service, and other functions. AI technologies are preferred for user engagement, cost optimization, and to provide business value differentiation. AI technologies combined with natural language processing methods can provide powerful voice- enabled virtual assistants. • Blockchain: Blockchain manages the distributed ledger, storing the sequence of transactions in a distributed network where data cannot be changed. This enables easier management and tracking of transactions. It can be used for use cases such as fund transfers, title registration, contract registration, and bank to bank transactions for faster execution of financial transactions. • Cryptocurrency: Cryptocurrencies are digital money that is gaining traction for a small percentage of financial transactions. Lack of centralized control and legal restrictions pose challenges in the usage of cryptocurrency. • Biometric authentication: Future authentication mechanisms heavily rely on biometric authentication comprised of fingerprint or face recognition. • APIs and microservices: Microservices-based architecture provides needed scalability, high availability, and reliability for banking platforms. APIs are an essential part of an integration ecosystem. • Gamification: Gamification methods (such as reward points, instant feedbacks, badges, levels, and such) are used to reward loyal 268