Revolutionizing Banking: How AI Startups Like Heron Are Shaping the Future of Digital Finance
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Revolutionizing Banking: How AI Startups Like Heron Are Shaping the Future of Digital Finance

AI Startups
ai
banking
digitaltransformation
startups
fintech
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Summary:

  • Digital resilience in banking now includes delivering trusted services that meet business objectives

  • Speed is critical in digital banking, with users expecting transactions in seconds

  • Remote work has increased reliance on digital systems, even for simple tasks

  • Banks are adopting observability practices to monitor and improve customer experience

  • Four key components of digital resilience: Reachability, Functionality, Performance, Continuous Availability

The Digital Transformation of Banking Interactions

Almost every banking interaction is digital at some point, relying on APIs and cloud services. This shift has expanded the concept of digital resilience, now encompassing the ability to deliver a trusted service that consistently meets critical business objectives.

Gerardo Dada, field chief technology officer at Catchpoint, highlights the metamorphosis of banking interactions. The familiar experience of visiting a physical bank branch has largely given way to digital engagements, where speed is paramount. "You try to make payments via Venmo, you check your balance on an ATM — it used to take eight seconds when I started working with digital banking some 20-something years ago," Dada said. "Now it’s down to three seconds."

Distributed Workforces and the Pervasive Digital Fabric of Banking

The shift to digital impacts not only customer-facing services but also internal operations. The acceleration of remote work means employees rely entirely on digital systems, with even simple tasks like depositing a check underpinned by complex digital connections.

Financial institutions are adopting a company-wide observability practice, integrating traditional Application Performance Monitoring (APM) tools with newer Internet Performance Monitoring (IPM) solutions. This shift transforms the IT department into the operations center of the company, with customer experience as its KPI.

The Impatient Consumer and the Fragility of Complexity

Consumer expectations for speed and seamlessness are higher than ever. To manage this complexity, banks must prioritize four components of digital resilience:

  • Reachability: Can users access the digital system?
  • Functionality: Are all digital capabilities operating as expected?
  • Performance: Do users get near-instantaneous feedback?
  • Continuous Availability: Can users depend on the system consistently?

Banks must adopt rigorous monitoring practices, focusing on an "outside-in" concept to understand the real-world user experience. Catchpoint addresses these needs with global coverage and intelligent agents, ensuring issues are detected and resolved proactively.

Digital Banking

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