- 2023 has seen a significant focus on technology within finance, notably AI applications and legacy system decommissioning.
- Banks such as HSBC and BNP Paribas are leading in AI application, while banks like Credit Suisse, JPMorgan, and Deutsche Bank are chief in decommissioning legacy software.
- JPMorgan and Citi have been significant recruiters in tech this year, and Goldman Sachs ended its consumer offering project, Marcus.
Due to the increased focus on technology within the sector, finance is experiencing several shifts. AI in finance has always been a hot topic, and it’s been taken to another level this year. AI use cases are being found in droves, and banks are leading the way. HSBC claims it has nearly 1000 AI cases in use or testing, while BNP Paribas has identified 100 use cases leveraging generative AI (GenAI). The cost-effectiveness and productivity boost GenAI brings to banks deem it significant despite its limitations in market prediction and autonomous coding.
Decommissioning of Legacy Software
One major trend within tech teams in banking this year is the decommissioning of unwanted legacy applications. Notably, big banks such as JPMorgan, Deutsche Bank, and particularly Credit Suisse, are championing this lately. Credit Suisse, driven by UBS’ acquisition in June, finds 90% of its tech systems unnecessary, leading to several departures within the company. UBS’ tech culture has not been well-received, and its agile methodology approach separates it from most other banking tech teams.
Tech Hiring and Investment
A surprising trend this year has been tech cuts throughout the sector. However, JPMorgan and Citi are exceptions, as they have been major tech recruiters so far. JPMorgan’s $12 billion cash injection into tech functions is well underway, and CEO Jamie Dimon has highlighted the need for further hiring. For Citi, their tech spending has coincided with the hiring of 7000 new technology staff, going against its earlier trend of major cuts.
Consumer Offerings and Partnerships
Meanwhile, in consumer offerings, Goldman Sachs’ consumer project, Marcus, was terminated this year. Goldman’s partnership with Apple for the Apple Card is rumored to be on shaky ground as well. On the other hand, JPMorgan has found success in the fintech space, with its commitment to Chase and the recruitment of some of Marcus’ tech leaders. Its plans to double Chase team size by the end of 2022 signals steady growth.