Home Tech Updates Gartner Reveals Top Three Tech Trends for Banks This Year

Gartner Reveals Top Three Tech Trends for Banks This Year

by Helen J. Wolf
0 comment

Business consulting firm Gartner has released a new report identifying the top three technology trends for banking and investment services globally by 2022.

The company says generative artificial intelligence (AI), autonomous systems, and privacy-enhancing computation are gaining momentum in banking and investment services. Gartner expects them to grow over the next two to three years.

Gartner VP Analyst Moutusi Sau says that while growth is the top priority, managing risk, optimizing costs, and increasing efficiencies require new technological innovations.

Gartner Reveals Top Three Tech Trends for Banks This Year

“Generative AI empowers banking CIOs to offer technology solutions to the business in pursuit of revenue growth, while autonomous systems and privacy-enhancing computation are long-term solutions that open up new options for business transformation in financial services,” she says.

generative AI

Gartner predicts that 20% of all consumer use case test data will be synthetically generated by 2025. Generative AI learns a digital representation of artifacts from data and develops innovative new creations like the original but doesn’t repeat it.

The report says that generative adversarial networks (GANs) and natural language generation (NLG) can be found in most fraud detection, trade prediction, synthetic data generation, and risk factor modeling scenarios in banking and investment services.

Autonomous systems

Gartner says autonomous systems are self-managed physical or software systems that learn from their environment and adjust their algorithms in real-time to optimize their behavior in complex ecosystems. They create flexible technology capabilities that support new requirements and situations, maximize performance, and defend against attacks without human intervention.

According to the report, autonomous systems are currently mainly software-based in banking. However, humanoid robots are emerging in smart industries, examples of hardware-based autonomous systems targeting customers and customers.

Gartner says the robots could be used in autonomous debt management, personal finance assistants, and automated lending. Robo-advisors are essentially low-level autonomous systems, although there are still trust issues due to their high degree of automation.

The company predicts that by 2024, 20% of organizations selling autonomous systems or devices will require customers to waive fees associated with the learned behaviors of their products.

Privacy-enhancing calculation

Gartner says privacy-enhancing computation (PEC) secures the processing of personal data in untrusted environments, which is becoming increasingly important due to evolving privacy and data protection laws and growing consumer concerns. It uses various privacy protection techniques to extract data value while meeting compliance requirements.

Gartner predicts that by 2025, 60% of large organizations will use one or more privacy-enhancing computational techniques in analytics, business intelligence, or cloud computing.

The report says that data is an inherent part of all analytics, computing, and data revenue efforts within the financial services industry. The adoption of PEC is increasing in use cases such as fraud analysis, intelligence operations, data sharing, and anti-money laundering.

Australian Financial Services

The report also found that IT spending on banking and investment services in Australia is expected to grow 12.7% to $28.4 billion by 2022.

Gartner says the largest spending category is IT services, including consulting and managed services, accounting for 47% of total IT spending in the industry at $13.4 billion. The fastest-growing category is software, with spending expected to grow 21% to $6.4 billion.

You may also like