By 2025, according to International Data Corporation (IDC), 40% of bank payments will be optimized using routing models derived from artificial intelligence (AI).
Banking services in particular would see increased adoption of AI to improve the speed and efficiency of payments in cash and commerce services, the agency predicted.
With the launch of the central bank digital currency (CBDC) slated for FY23, banks would need to brace for several changes.
With increasing adoption of CBDC, more than 15% of Tier 1 corporate banks would offer their customers integrated solutions to unlock liquidity from both traditional and digital assets by 2025.
“They must assess the existing workflow and data structure to identify the processes and systems that require adjustments to support CBDC adoption,” IDC said in a Friday study.
As a result, around 35% of commercial banks would switch connectivity to platforms by 2023 to address increasing channel fragmentation.
Banks would need to consider infrastructural requirements to support custody and custodial services for CBDCs with the combination of centralized relational database management systems and distributed ledger technology, IDC added.