Banking and Investment Services industries have recently seen an overwhelming increase in digitalization. In order to keep up with the technological paradigm shift, they are ready to make huge investments in advancement of technologies.
A research giant, Gartner, has predicted that in 2022, a whopping US $623 Billion will be spent on technological products and services in the Banking and Investment industry. 42% or US $264 billion of this IT investment would be directed towards consulting and managed services. US $149 billion is estimated to be invested in software.
Gartner further suggests that innovative technologies like Cloud Computing must be adopted by organizations in their systems to manage their risks and optimize costs.
It is forecast that in 2022, Banking and Investment services will be dominated by three trends: Generative artificial intelligence (AI), privacy-enhancing computation and autonomic systems. In the next few years, will see a boom in these trends, further expanding financial services organizations.
Generative AI, by providing technological solutions, is being used by banks to generate revenue, whereas automatic system and privacy-enhancing computation is being used for long term transformation of financial services.
Gartner has made it easier for us to anticipate the trends in this industry by predicting these three technologies that will help transform the banking and investment industries.
First trend: Generative AI
Gartner’s prediction regarding Generative AI suggests that 20% of the customer-based data will be generated synthetically by 2025. Generative AI uses un-supervised learning algorithms to create new and unique creations like digital images, audio, videos etc.
Banking and investment services will manage fraud detection, synthetic data generation and risk factor modeling by utilization of generative adversarial networks (GANs), and natural language generation (NLG). Since it is an advanced personalization process, it has great scope for growth.
Second trend: Autonomic Systems
Automatic systems are any software or physical systems that change their own algorithms based on changes in their environment. They self-manage and optimize their behavior to produce agile technological capabilities in their complex ecosystems. Without any human interference, they are used for optimization of performance and act as a shield against cyber threats.
Both hardware and software based automatic systems are being utilized by the banking sector. Automatic humanoid robots are being utilized in banks to cater to customer’s needs. Autonomous debt management, personal finance assistants and automated lending are few of the banking services areas that could utilize automatic systems.
According to Gartner, 20% of the organizations using autonomic systems by 2024 will have their customers sign an indemnification clause, ensuring that customers would not hold them responsible for any damage or loss caused by the system.
Third trend: Privacy-Enhancing Computation (PEC)
PEC ensures personal data protection during processing in un-trusted environments. Evolving privacy settings, dynamic data protection laws and increasing customer’s security concerns cause PEC to apply various privacy-protection techniques to extract value form data, while ensuring compliance.
By 2025, 60% of organizations are estimated to use privacy-enhancing computation techniques, particularly in Cloud Computing or analytics. Use of PEC is spiking in use cases like fraud analysis, data sharing and anti-money-laundering.
Contact dinCloud, an ATSG company, for top-notch cloud-based solutions at much affordable prices as compared to other industry giants and their competitors.
