By Kishan Sundar, Senior Vice President and Chief Technology Officer, Maveric Systems
Reflecting on the past few years, several key digital transformation milestones have shifted the trajectory of the BFSI industry. The rise of branchless banking, architectural evolution from monolithic systems to modular, cloud-native frameworks, the emergence of digital-only banks, and regulatory mandates have empowered fintechs to offer previously exclusive banking services.
Branchless banking redefined customer reach and access, delivering convenience and flexibility on a large scale. The architectural transition from rigid monolithic systems to modular and cloud-native platforms represented a foundational shift, putting agility and scalability at the core of banking operations apart from technological upgrades. Digital-only banks have rapidly grown in prominence, driving seamless onboarding and instant support, and signalling a new benchmark in customer experience. Regulatory changes have played a transformative role, inviting fintechs into service domains previously walled off by traditional banks. This competitive dynamic has catalysed industry-wide innovation and choice.
From a technology vantage point, cloud adoption stands out as the enabler for BFSI’s new foundation. Although AI and open APIs are crucial for product innovation and distribution, the move towards cloud infrastructure has fundamentally reshaped how financial institutions operate. Transitioning from Capex to Opex models means banks now harness flexible, scalable platforms, which advance experimentation, speed, and operational efficiency. The cloud is now the bedrock that powers BFSI’s future-forward capabilities.
Signals Shaping BFSI’s 2026 Future
As 2026 approaches, several indicators suggest that the next phase in the BFSI transformation is underway. GenAI is moving from pilot programs into full production. AI agents are surpassing the capabilities of chatbots, undertaking sophisticated tasks such as drafting regulatory reports, generating personalised investment memos, and automating code for IT teams. This leap positions AI as an assistant and an autonomous driver of productivity and compliance.
With embedded finance becoming pervasive through Banking-as-a-Service and open banking APIs, financial services are becoming invisible. They surface directly at the point of need, such as during real-time margin lending. This shift enables a seamless, context-driven experience for customers.
Industry attention is sharpening around Explainable AI (XAI). Regulatory demands regarding credit decisions are prompting institutions to invest in AI models that are transparent and auditable. This is essential for building trust in systems that automate deeply critical tasks.
Technology Convergence: GenAI, Analytics, and Cybersecurity
Technologies are converging to redefine both customer experience and risk management. Real-time analytics enable banks to understand a customer’s context instantly, for instance, by recognising when a customer has missed a payment. GenAI leverages this context to deliver hyper-personalised, proactive offers and support, such as reaching out with tailored advice or suggesting flexible payment extensions. The shift from reactive interactions to predictive engagement is elevating service standards and deepening customer relationships, much like agent-assist models that proactively anticipate and address the reason for a customer’s call.
Cybersecurity remains integral, intersecting with these advancements to protect complex, interconnected digital ecosystems and uphold trust at every step.
Barriers to Transformation and Solutions
Despite these strides, hurdles persist. Legacy systems are deeply embedded and difficult to overhaul. Talent gaps, particularly in emerging digital skills, restrict the speed and scale of transformation. Governance poses its own set of challenges, from integrating new technologies to ensuring regulatory compliance.
To overcome these obstacles, the industry must focus on building foundational technological capabilities, investing in workforce reskilling, and fostering agile governance models that empower rapid and compliant innovation. Leadership-driven change and domain-led partnerships are fundamental to enabling scalable transformation.
