Published on January 11, 2024 | 3 Mins Read

In navigating the turbulent waters of technology evolution, the Banking, Financial Services, and Insurance (BFSI) sector remains in the lead, with a steadfast gaze on robust, secure, and cost-effective innovations. As we surge into 2024, tech leaders should chart a course fueled by cloud native, with an expected surge from the late adopters making headway.

With expected interest rate cuts, the decline in core inflation, and many elections around the globe in 2024, many are very optimistic. On the other hand, the ongoing geopolitical uncertainty, global GDP forecast, and expected IT spending might keep some a little bit worried.

 ❝ The best way to predict the future is to create it. ❞ -  Peter Drucker 

In reality, no one has a crystal ball into what is in store for us in 2024. In this blog post, we want to share with BFSI tech leaders 7 insights on what we’re expecting based on our interactions working with practitioners, business leaders, and analysts.  

1. Platform Engineering Takes Center Stage

As developers grapple with the intricacies of AI workloads, platform engineering emerges as the cornerstone of innovation. Optimized cloud platforms are requisite for addressing the complex demands of GenAI, as showcased by pioneering examples such as OpenAI.

2. Accelerated Innovation Through Emerging Technologies

Motivated possibly by the banking crisis in 2023, the industry embraces emerging technologies like open banking, fostering accelerated innovation. This trend aligns with significant advancements in customer experience avenues such as blockchain banking and blockchain on Kubernetes (BoK), which are poised to redefine FinTech.

3. Cloud Native Security on Steroids

With the elevation of technologies such as eBPF, we will witness a convergence of application, infrastructure, and security observability bringing in all sorts of metrics, logs, and traces under one roof. High-end fraud detection mechanisms and RegTech will become more pertinent, while open compliance and regulations will underscore the pivotal role of security in the cloud native realm.

4. Focus on AI and MLOps

The analytical power of AI and machine learning requires an infrastructure to match. The growing focus on MLOps underscores the need to merge AI potency with operational agility, ensuring BFSI institutions remain at the forefront of tech refinement. For instance, Kubeflow, an open source machine learning toolkit for Kubernetes that became an incubated CNCF project last year, makes it easy for engineers to build, run, and scale AI workloads on Kubernetes. 

5. Kubernetes Shifts Gear

The emphasis will shift to harnessing real-world applications with Kubernetes, rather than only the capabilities of the technology itself. This opens the door to BoK, Data on Kubernetes (DoK), open banking, and other innovative conceptualizations. Case studies and use cases will be at the forefront while Kubernetes as an emerging tech will approach or enter the plateau of adoption within a few years. 

6. Urgent Need for Simplification

As the complexity of cloud native ecosystems escalates, the push for simplification becomes paramount. The KISS (Keep It Simple, Stupid) principle will guide the consolidation of tools across commercial and CNCF projects, streamlining the adoption curve for BFSI enterprises.

7. Sustainability Through Green Initiatives

Financial operations optimization, FinOps, and GreenOps are integral to driving cloud cost optimization. Eco-friendly strategies are not just ethical; they're economical, combining cost-saving benefits with sustainable business practices.

The forecasts for 2024 portray a transformative future for BFSI tech leaders, melding the potent capabilities of cloud native technologies with innovative business practices. From the cornerstone of platform engineering to the eco-consciousness of GreenOps, the BFSI sector is steering toward a horizon brimming with uncharted opportunities and challenges. Let's create our future by embracing these predictions with strategic acumen and adaptive innovation.

What are your predictions for cloud native and how it's going to impact the BFSI sector in 2024? Let us know in the comments. If you're ready to unlock innovation and lead the cloud native charge in your organization in 2024, connect with us to get started today.