Technology keeps changing how we live and work. Today, we can buy almost anything online within seconds using a virtual card from a fintech that didn’t exist a decade ago. Not long ago, most payments still meant cash and a trip to the store. With AI, cloud and other modern tools reshaping every industry, it’s fair to ask: will banks even exist in 5–10 years, or will fintechs simply replace them?
Surprisingly, the trends show the opposite. Banks aren’t disappearing — they’re turning into technology driven organizations. What this transformation looks like from the inside, and why fintechs actually speed it up, was explained by Bálint Fischer, Director of Business Development at Dorsum, whose investment software supports major banking groups across 10 European countries.
The real revolution is happening behind the scenes
According to Fischer, banking is no longer going through a sudden “digital revolution,” but more of a deep rebuild of the engine that powers the entire financial system. Customers only see the easy-to-use apps — but the real action is happening in the background: in technology, operations, and decision making. Historically, banks have moved slower than other sectors because they’ve always had to be extremely cautious. They’re responsible not only for people’s money but also their most sensitive personal information. Today, the lines between industries are blurring. Banks are starting to operate more like tech companies, while fintechs are adopting traits of regulated institutions. The result isn’t conflict, but convergence — a hybrid ecosystem where cooperation and competition go hand in hand. Most fintechs aren’t replacing banks; they’re becoming infrastructure partners.
From shiny apps to deep system upgrades
The first wave of digitalization was all about what customers could see: mobile banking, fast onboarding, smoother UX. Banks have more or less caught up with fintechs on that front. Now comes the hard part: transforming decades old backend systems that slow everything down. These legacy cores limit innovation, complicate integrations, and increase costs. Modernizing them is no longer a technical side project — it’s becoming the biggest driver of competitiveness.
AI moves from assistant to operating system
Artificial intelligence has quietly shifted from being experimental to becoming a core part of banking operations. Many banks already use it for fraud checks, risk monitoring, and compliance. The next step is “agentic AI” — systems that not only analyze data but perform tasks and make decisions in real time. This could include transaction processing, compliance reviews, or even managing parts of investment portfolios. AI is also powering highly personalized customer experiences. Still, when it comes to major financial decisions, people want to speak to a human being — because trust is, at its core, human.
Cloud, APIs, and open ecosystems
While AI evolves, banks are also building a new technological foundation. Cloud migration, open banking, and API driven services are enabling “embedded finance” — financial services so seamlessly built into other platforms that customers barely notice they’re using them. Open banking is entering a stage where banks don’t just store data — they orchestrate digital ecosystems. Realtime operations are becoming standard, and the ability to launch new products quickly is turning into a key competitive edge.
Security and regulations evolve in parallel
Greater digitalization brings more complex risks. Cybersecurity and regulatory compliance are now just as important as innovation. In the EU, the challenge is finding balance: regulation protects stability but can slow development. Local markets, including Serbia and the wider region, follow EU standards, creating a structured but constantly evolving regulatory environment. Serbia and the region: catching up quickly. Regional trends mirror European and global ones. Banks are increasingly open to modernization, supported by international groups that bring in expertise and capital. Dorsum, with dedicated focus on the Adriatic region and strong local understanding, helps institutions modernize advisory processes, investment solutions, and operations — areas where local expertise makes a tangible difference.
Dorsum: where technology meets real operations
With over 30 years of experience and partnerships with more than 80 financial institutions, Dorsum works in the “invisible zone” of banking transformation. Instead of isolated innovation, they focus on solving core operational challenges — modernizing legacy systems, introducing AI and analytics, speeding up product development, and ensuring compliance. In an industry where “20% of the right changes solve 80% of the problems,” this targeted approach matters.
The future: infrastructure decides the winners
As Fischer puts it: the future of banking won’t be decided by who has the nicest app, but by who builds the smartest, most flexible infrastructure. AI, cloud, digital assets, and open ecosystems are all part of one larger puzzle. Those who assemble it fastest will lead the next era of financial markets.
The question is no longer whether banking will transform — but how quickly, and who will be able to rebuild it from within.
The original interview was published in Serbian in BIZLife.
