Indian Economy News

IT spend in banking and securities sector in India to grow 9 per cent in 2020: Gartner

  • IBEF
  • October 23, 2019

According to United States-headquartered multinational IT consultancy firm Gartner, Inc., the investment from the Indian banking and securities sector is expected to continue in digital business with spends estimated to grow at 9.1 per cent to US$ 11 billion in 2020. 

The investment is seen in the technologies such as artificial intelligence and blockchain in order to offer new products and respond to customers demand in a better way. 

"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 Mr. Ali Merji, senior research director at Gartner.

The AI and machine learning are identified by the global Gartner CIO Survey as the leading game changing technologies at 27 per cent, followed by data analytics, including predictive analytics, at 20 per cent.

"CIOs (chief information officers) in this sector continue to adopt digital technologies that will improve existing products and services. Technologies such as biometric authentication, machine learning and chatbots are increasingly preferred by CIOs to deliver an enhanced user experience and enable digitalisation of the sector," said Merji.

According to Gartner's Hype Cycle for Digital Banking Transformation 2019, the of banking organisations will witness impact of biometric technology up to 20 per cent 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," said Merji.

"Biometrics eliminates the hassle of remembering passwords and makes the banking experience more secure and seamless," added Merji. "This is one of the key factors that influenced 83 per cent of surveyed global CIOs in the banking and securities sector to indicate that they will continue investing in biometrics with either the same level of investment or by going beyond the current level in the next two years."

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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