Generative artificial intelligence (AI), autonomic systems and privacy-enhancing computation (PEC) are three technology trends gaining traction in banking and investment services in 2022, according to research firm, Gartner, Inc.
These trends will continue to grow over the next two to three years, contributing to growth and transformation of financial services organisations, the firm said in a release.
Moutusi Sau, VP Analyst at Gartner, said, “While growth is the top priority, the need to manage risk, optimise costs and increase efficiency also requires new technology innovations.”
IT spending by banking and investment services firms is forecast to grow at 6.1 per cent in 2022 to $623 billion worldwide. The largest category of spending is IT services, which includes consulting and managed services and accounts for 42 per cent of total IT spending in the sector at $264 billion.
The three emerging technologies identified by Gartner collectively contribute to goals to run, grow and transform a business and have demonstrated use cases in the banking and investment industry.
Gartner predicts 20 per cent of all test data for consumer-facing use cases will be synthetically generated by 2025. Generative AI learns a digital representation of artifacts from data and generates innovative new creations that are similar to the original but does not repeat it.
Autonomic systems are self-managed physical or software systems that learn from their environments and dynamically modify their own algorithms in real-time to optimise their behavior in complex ecosystems. Gartner predicts by 2024, 20 per cent of organisations that sell autonomic systems or devices will require customers to waive indemnity provisions related to their products’ learned behavior.
PEC secures the processing of personal data in untrusted environments — which is increasingly critical due to evolving privacy and data protection laws, as well as growing consumer concerns. Gartner predicts 60 per cent of large organisations will use one or more privacy-enhancing computation techniques in analytics, business intelligence or cloud computing by 2025.