A newly released whitepaper on the future of banking has found that AI and analytics will play a “central role” in the future of worldwide banking.

The ‘Bank of the Future’ paper- released by Mambu and Google Cloud – said that ‘ubiquitous banking’ will likely be the next stage of digital finance as consumers continue to demand constant, personalised digital financial services after the pandemic.

AI and analytics will form a major part of this next stage the data suggested, helping to drive significant growth opportunities as customers further desire speed, convenience and instant access to information, goods and services.

Strong focus must be placed on ‘customer-centric strategy’ the paper suggests, creating products and services built around and for customers. This strategy should be to embed AI tech to “hyper-personalise the user experience”.

Value for customers must also be prioritised, said the paper, with flexible, cloud-based core banking software to further help respond to the changing needs of customers customer.

Mambu and Google Cloud said that building an AI enabled “Bank of the Future” will be an “incremental and iterative process” that will require “bold decisions” on business, tech, and operating models.

Commenting on the data, Eugene Danilkis, CEO at Mambu, said: “The report shows the world that banks were originally created to serve no longer exists. Historically built to last, today banks need to be built to change.

“If traditional players want to reposition themselves as lifestyle partners, in tune with the modern banking needs of their customers, then they must evolve rapidly – and without fear.

“Key to this will be their embrace of AI technology which has broad-ranging applications from fraud prevention and risk management to delivering personalised customer experiences and driving efficiencies through greater automation.”

He added: “But banks must act fast if they want to avoid getting left behind. Only by leveraging the capabilities of AI and cloud technologies will they be able to reimagine the customer experience and tap into new revenue streams in a competitive market.”

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The report also stated that, as AI adoption grows across financial services and other industries, banks must be prepared to deal with “enhanced scrutiny and regulation” that comes with the use of AI which will serve to reinforce trust with customers, governments, and wider society.

In further recognition of the future of banking, data collected by TrueLayer and YouGov in July found that that 74% of merchants are planning on adopting open banking standards as we move further forward with financial technology.

According to the research, while card use still dominates, more merchants are planning to increase the use of open banking technology to offer instant bank transfers.

In July, Juniper Research also found that more than half (53%) of the world’s population could be digital banking by 2026.

Joachim Wuest, Director, Financial Services Industry at Google Cloud, added: “As the financial services industry continues to digitally transform, there is an increased need for solutions that help businesses deliver personalised experiences to customers.

“We look forward to partnering with groups like Mambu to bring AI-powered solutions to banking organisations as they move along their digital transformation journeys.”

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