Indian Banking and securities companies are turning more technology-savvy as they are likely to increase focus in buying IT services, a move that will ultimately improve customer services while checking frauds.
As per Gartner’s estimate, Indian banking and securities companies will spend Rs 49,900 crore on IT products and services in 2015, an increase of 9.8 per cent year-on-year. This forecast includes spending by financial institutions on internal IT, hardware, software, external IT services and telecommunications.
Rajesh Kandaswamy, Research Director, Gartner, said, “Established firms in the industry are investing to strengthen their operational infrastructure to support regulatory needs, as well as sustain increasing demands from the digital channels.”
The Reserve Bank of India (RBI) has issued licences for 11 payment banks and another 10 small finance banks.
Rajesh further said, “These new entrants will grow the IT market by their own technology investments, and also by stimulating the incumbents to invest in modern technology.”
Indian Banks will increase investments in digital solutions, modernise back-end systems and increase their reliability and speed. As a result, higher spending will offer opportunities for IT vendors, who provide such services.