Newsroom

Press Releases

MUMBAI, India, October 22, 2019

Gartner Predicts Indian Banking and Securities IT Spending Will Grow 9% in 2020

Analysts to Discuss Latest Industry Trends at Gartner IT Symposium/Xpo 2019, November 11-14, in Goa, India

The banking and securities sector in India continues to increase its investments in digital business. Its spending on IT in India will total $11 billion in 2020, an increase of 9.1% from 2019, according to the latest forecast by Gartner, Inc.

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.

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 Mr. 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 Mr. Merji. Biometric authentication such as touch ID is a common way of using passwordless authentication and is widely deployed in mobile banking.

“Biometrics eliminates the hassle of remembering passwords and makes the banking experience more secure and seamless. This is one of the key factors that influenced 83% 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,” said Mr. Merji. “Seven in 10 Indian Financial Services firms are actively experimenting with biometrics or have already deployed it in their organization in some capacity.”

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. While user-facing digitalization efforts are critical to delivering a complete digital experience to customers, digitalization of internal processes is necessary to support this initiative. Gartner says that of the total technology investments being made in the Indian banking sector, 23% are for digitalization of internal services. This investment is expected to grow by 9% over the next two years.

“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 Mr. Merji. “In a bank, customer data moves across multiple departments for even the simplest of processes, such as opening a new bank account. Automation of these back-office processes can reduce the response time, ensure data continuity and secure data transfers, and at the same time deliver an enhanced user experience.”

Gartner clients can read more in “Forecast: Enterprise IT Spending for the Banking and Securities Market, Worldwide, 2017-2023, 2Q19 Update” and “Market Insight: Banking and Securities Market Planning and Strategy for Product Managers, 2019.”

Additional advice on how to drive business performance will be presented during Gartner IT Symposium/Xpo 2019, the world’s most important gathering of CIOs and other IT executives. IT executives rely on Gartner IT Symposium/Xpo to gain insight into how their organizations can use IT to overcome business challenges and improve operational efficiency. Follow news and updates on Twitter using #GartnerSYM.

Upcoming dates and locations for Gartner IT Symposium/Xpo include:

October 28-31: Gold Coast, Australia

November 3-7: Barcelona, Spain

November 11-14: Goa, India

November 12-14: Tokyo, Japan

March 2-4, 2020: Dubai, United Arab Emirates

May 11-14, 2020: Toronto, Canada

About Gartner

Gartner, Inc. (NYSE: IT) is the world’s leading research and advisory company and a member of the S&P 500. We equip business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities today and build the successful organizations of tomorrow.

Our unmatched combination of expert-led, practitioner-sourced and data-driven research steers clients toward the right decisions on the issues that matter most. We are a trusted advisor and an objective resource for more than 14,000 enterprises in more than 100 countries — across all major functions, in every industry and enterprise size.

To learn more about how we help decision makers fuel the future of business, visit gartner.com.

Contacts