Financial institutions are partnering with technology firms—from cloud providers to fintechs—to adopt innovations that help them stay competitive, remain agile and improve the customer experience. However, the biggest hurdle to adopting new technologies is security and regulatory compliance.

While third and fourth parties have the potential to introduce risk, they can also be the solution. As enterprises undergo their modernization journeys, fintechs are redefining digital transformation in ways that have never been seen before. This includes using hybrid cloud and AI technologies to provide their clients with the capabilities they need to modernize securely and rapidly while addressing existing and emerging legislation, such as the Digital Operational Resilience Act (DORA) in the EU.

The financial services industry needs to modernize, but it is challenging to build modern digital solutions on top of existing systems. These digital transformation projects can be costly, especially if not done correctly. It is critical for banks and other financial institutions to partner with a technology provider that can automate enterprise processes and enable them to manage their complex environments while prioritizing resilience, security and compliance. As the January deadline for DORA (which is designed to strengthen the operational resilience of the financial sector) approaches, it is critical that fintechs align their practices to support resilience and business continuity.

How FlowX.AI is modernizing mission-critical workloads with AI

Both IBM® and FlowX.AI have been on a mission to enable our clients to manage mission-critical workload challenges with ease. IBM designed its enterprise cloud for regulated industries with built-in controls and confidential computing capabilities to help customers across highly regulated industries (such as financial services, healthcare, public sector, telco, insurance, life sciences and more) to maintain control of their data and use new technologies with confidence.

FlowX.AI believes that the key to managing increasingly complex environments is AI, and its solution brings multiagent AI to banking modernization. The robust, scalable platform combines deep integration capabilities and connector technology with AI-enabled application development. FlowX.AI is designed to automate enterprise processes and integrate seamlessly with existing systems, from APIs and databases to mainframes. This enables enterprises to build and deploy powerful, secure applications in a fraction of the time traditionally required. Also, as a part of the IBM Cloud for Financial Services® ecosystem, the company is using the IBM Cloud Framework for Financial Services to address risk in the digital supply chain through a common set of security controls.

“Highly regulated industries like financial services are under immense pressure to adapt quickly to shifting market dynamics and deliver exceptional customer experiences, all while navigating increasingly complex regulatory requirements. Our platform is designed to address these challenges head-on, equipping banks with the tools to deliver rapidly and efficiently. By collaborating with IBM Cloud for Financial Services, FlowX.AI aims to simplify the complexity banks face and help them unlock innovation faster, while still prioritizing security and compliance.” – Ioan Iacob, CEO, FlowX.AI

How Swisschain is ushering in the next era of blockchain technology

The financial industry is on the verge of a significant transformation with the digitization of financial assets. In financial services, blockchain technology has made it easier to securely digitize assets to trade currencies, secure loans, process payments and more. However, as banks and other financial institutions are building their blockchain integrations, it can be difficult to maintain security, resilience and compliance.

To meet the evolving needs of the financial industry, Swisschain has developed a hybrid digital asset custody and tokenization platform that can be deployed either on premises or in the cloud. The platform is designed to allow financial institutions to securely manage high-value digital assets and to offer seamless integration with both public and permissioned blockchains. Swisschain’s multilayered security architecture is built to deliver protection of governance over private keys and policies. They offer root-level control, which aims to eliminate single points of failure. This can be a critical feature for institutions using high-value assets.

By using IBM Cloud Hyper Protect Services, Swisschain can tap into IBM’s “keep your own key” encryption capabilities, designed to allow clients exclusive key control over their assets and to help address privacy needs. Swisschain’s solution is designed to offer greater levels of scalability, agility and cost-effectiveness, to help financial institutions navigate the complex digital asset landscape with confidence and efficiency. In collaboration with IBM, Swisschain aims to set a new standard for innovation in the digital asset ecosystem.

“Tokenizing financial assets through blockchain technology is rapidly accelerating the digitization of the financial industry, fundamentally reshaping how we trade and manage assets. By converting traditional asset ownership into digital tokens, we enhance transparency, security and liquidity, making it easier for financial institutions to navigate this new landscape. Our goal is to provide the essential infrastructure that bridges traditional finance with digital assets. Collaborating with IBM Cloud for Financial Services has been a game-changer in our mission to lead the next era of blockchain and digital asset technology.” – Simon Olsen, CEO, Swisschain

Innovating at the pace of change

Modernization efforts vary across the financial services industry, but one thing is for certain: banks need to innovate at the pace of change or risk getting left behind. Having an ecosystem that incorporates fintech, cloud and AI technology will enable large financial institutions to remain resilient, secure and compliant as they serve their customers.

With IBM Cloud for Financial Services, IBM is positioned to help fintechs ensure that their products and services are compliant and adhere to the same stringent regulations that banks must meet. With security and controls built into the cloud platform and designed by the industry, we aim to help fintechs and larger financial institutions minimize risk, stay on top of evolving regulations and accelerate cloud and AI adoption.