Cloud computing

The blockchain could move from testing to reality, APIs are likely to expand, and more functions will move to the cloud as banks look for ways to fend off fintechs in 2016.

Next year, look for banks to finally start putting mission-critical applications on public cloud services, with Capital One leading the way.

Umpqua Holdings wants other banks to join its recently announced innovation lab in Silicon Valley. The company says if smaller banks pool resources they can compete with the deep pockets of the big banks in disruption.

Major cloud, consulting and software providers like Microsoft and Deloitte are plugging "blockchain as a service" for financial institutions that want to experiment with this technology without making huge investments.

The core-processing vendor FIS wants to dream big like fintech startups when it comes to developing future services, but it also seeks to be large enough to offer multiple services in an era when banks are cutting back on third-party providers.

So-called containers can lessen the IT workload and help companies bring applications into the cloud. New security and management tools, like automatic patching, are bringing containers into the mainstream.

Q2, in Austin, Texas, paid $10.6 million to acquire all outstanding interests in Social Money, according to a Tuesday news release. The purchase price was subject to a customary working capital adjustment.

The proliferation of easy-to-use analytics tools has allowed community banks to do what used to take teams of quants to accomplish. Some are using it to get an edge in M&A, others are using it to improve efficiency.

Community banks are embracing branch innovations to deliver a more personalized experience to customers, and differentiate themselves from larger competitors.

Nasdaq has unveiled its blockchain technology initiative. The platform uses blockchain technology to issue shares for privately held companies on the Nasdaq Private Market and record their transfers. Clients receive a comprehensive record of issuance and transfer.