Payments wave can boost IT spends in BFSI

MUMBAI, INDIA: Indian banking and securities companies will spend 499 billion rupees on IT products and services in 2015, an increase of 9.8 per cent over 2014 spend of 455 billion rupees, according to Gartner, Inc.

This forecast includes spending by financial institutions on internal IT (largely personnel), hardware, software, external IT services and telecommunications.

“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. Moreover, Reserve Bank of India has issued licenses for 11 payment banks and another 10 small finance banks, “said Rajesh Kandaswamy, research director at Gartner “These new entrants will grow the IT market by their own technology investments, and also by stimulating the incumbents to invest in modern technology. India has also been upgrading, and increasing, the technology infrastructure that facilitates payments. Banks will take advantage of these by building technology-enabled services on top.”

“Technology will play a more pervasive role in banking and securities, and in all aspects of the business. Indian banks will increase investments in digital solutions, modernize back-end systems and increase their reliability and speed,” added Kandaswamy.