The global banking sector stands at a crossroads, teetering between maintaining operational excellence and embracing disruptive innovation. With 2025 underway, financial institutions are navigating the razor’s edge of balancing their traditional “run the bank” operations with the transformative imperative to “change the bank.”
“Running the bank may keep operations on track today, but changing the bank will define its relevance tomorrow,” asserts Fernando Castanheira, CIO of Riverbed Technology, in an exclusive interview with The Finance 360.
Is AI The Cornerstone Of Banking’s Evolution?
Artificial intelligence has moved beyond its experimental phase to become part of key strategy when it comes to banking innovation. In fact, 94% of financial leaders believe AI is a game-changer for enhancing digital customer experiences, according to the Riverbed Global AI & Digital Experience Survey. Notably, 46% of financial institutions are fully prepared to implement AI strategies, outperforming peers in other industries.
However, being prepared isn’t the same as unlocking AI’s full potential. The challenge lies in deploying these technologies to both enhance operational efficiency and fortify long-term adaptability.
“The fusion of AI, machine learning, and data analytics breaks down traditional silos between running and changing the bank,” Castanheira explains.
This convergence allows real-time decision-making, strengthens security, and ensures compliance—all while enhancing customer experiences.
Banks that leverage tools like AIOps (Artificial Intelligence for IT Operations) and unified observability gain a dual advantage: streamlining existing operations while future-proofing their infrastructure to anticipate market shifts and emerging risks.
Navigating The Compliance Tightrope
Few industries are as heavily regulated as financial services, and compliance remains a defining pillar of banking operations. Managing vast quantities of sensitive data under rigorous scrutiny is not just a necessity—it’s the backbone of customer trust and institutional stability.
Castanheira emphasizes that aligning IT infrastructure with compliance is now a strategic priority, not just an operational one.
“Agile and scalable technologies are key,” he says. “They not only meet current regulatory standards but adapt to future changes, enabling institutions to navigate the complexities of compliance while driving innovation.”
A shining example of this synergy is Arab National Bank in Riyadh, which modernized its core banking applications using Riverbed’s AI Observability solutions. By adopting tools like NetIM and AIOps, the bank seamlessly integrated emerging technologies while safeguarding customer experiences for over two million users.
Breaking Down Barriers: A Unified Approach to Transformation
The next wave of technological innovation will redefine the operational frameworks of financial institutions. The convergence of AI, machine learning, and data analytics promises to dissolve traditional barriers between tactical execution and strategic planning.
According to Castanheira, this dual focus is non-negotiable – “Banks that prioritize operational stability without investing in change risk becoming obsolete. The future belongs to those who can master both.”
Unified observability tools enable institutions to adopt a holistic view of their systems, allowing decision-makers to address immediate challenges while preparing for future disruptions. It’s this ability to manage complexity without compromising stability that will separate market leaders from laggards.
2025 and Beyond: Banking’s Defining Decade
The stakes have never been higher. Ninety-nine percent of financial leaders surveyed agree that AI is a strategic priority or moderately important. But integrating AI into the DNA of banking operations requires a methodical, phased approach to mitigate risks and maximize benefits.
“Incremental implementation ensures stability while testing the limits of what’s possible,” Castanheira advises. “It’s not about jumping in blindly but about building a foundation that supports sustained growth.”
The customer experience is also evolving. Hyper-personalized services, powered by AI, are becoming a baseline expectation. Today’s customers demand seamless digital experiences that adapt to their unique needs, and financial institutions must deliver to maintain trust and loyalty.
The future of banking hinges on the ability to innovate with precision and purpose. As Castanheira aptly puts it, “Innovation isn’t an opportunity; it’s a necessity. The banks that embrace change today will shape the future of finance tomorrow.”
For financial institutions, the next phase of growth requires more than operational excellence—it demands visionary leadership, agile infrastructures, and a relentless commitment to digital transformation.
