Represents an increase of 9.1% from 2019
IT spending by banking and securities firms in India is forecast to reach $11 billion in 2020, an increase of 9.1% from 2019, Gartner has projected.
Banking and securities organizations are investing in emerging digital technologies, such as artificial intelligence (AI) and blockchain, not only to create new product offerings but also to respond to evolving customer demands.
“As an example, the transition to a cashless society aided by newer digital payment channels is creating opportunities for new digital technology investments in the sector,” said Ali Merji, senior research director at Gartner.
“As an example, the transition to a cashless society aided by newer digital payment channels is creating opportunities for new digital technology investments in the sector,” Ali Merji, Senior Research Director at Gartner, said in a statement.
Respondents to the 2019 global Gartner CIO Survey identified AI and Machine Learning as the number one game changing technology at 27% followed by Data Analytics, including predictive analytics at 20%.
“CIOs in this sector continue to adopt digital technologies that will improve existing products and services. Technologies such as biometric authentication, machine learning, chatbots are increasingly preferred by CIOs to deliver an enhanced user experience and enable digitalization of the sector,” said Merji.
Biometrics and Automation Boost IT Spending
According to Gartner’s “Hype Cycle for Digital Banking Transformation, 2019,” biometric technology will impact up to 20% of banking organizations in the next two to five years.
“In India, biometric technology adoption saw a boost after the introduction of Aadhaar, a unique 12-digit identification number that links citizens’ bank accounts to their biometric data and mobile numbers,” added Merji.
According to the 2019 Gartner CIO Survey, technology leaders in banking place a higher priority on legacy modernization than do technology leaders in other industries.
“One of the critical challenges that troubles Indian banking and securities CIOs is connecting legacy digital systems to modern IT setups without interrupting the flow of data,” said Merji.