This investment is 11.7 per cent higher than the spending on IT services by banks and security services companies reported in 2016,
Reportedly, this is a positive growth post the slowdown in spending over the previous two quarters.
Banks are expected to invest primarily in Artificial Intelligence and Blockchain for application in financial services as consumers are shifting to digital banking.
Today, most of the customers have the liberty to access their bank accounts, investment portfolio and account details on their own.
“The Indian banking sector’s spending on device infrastructure will grow at 20 percent in 2017, followed by IT spending at 15.8 per cent,” said Gartner.
“Financial services firms are lagging behind global top-performing organisations in relation to digital transformation. They hope that doing ‘more of the same’ will equate to improved performance,” said Rajesh Kandaswamy, research director at Gartner.
To lure customers, major banks like State Bank of India, Housing and Development Finance Corporation, ICICI, Axis Bank, Bank of Baroda and Punjab National Bank etc. have launched various mobile payments and banking applications for their retail and corporate customers.
“…As banks focus on enhancing the legacy infrastructure and making digital transformation the primary goals for the banks, we will see more investments flow into newer concepts like artificial intelligence (AI) and blockchain,” said Moutusi Sau, principal research analyst at Gartner.