Gartner Identifies Three Technology Trends Gaining Traction in Banking and Investment Services in 2022 – Gartner

Generative artificial intelligence (AI), autonomic systems and privacy-enhancing computation are three technology trends gaining traction in banking and investment services within 2022, according to Gartner, Inc. These styles will continue to grow over the next two to three years, contributing to growth plus transformation of financial services organizations.

“While growth is the top priority, the need to manage risk, optimize costs and increase efficiency also requires new technology innovations, ” said Moutusi Sau , VP Analyst at Gartner. “ Generative AI enables bank CIOs to offer technologies solutions in order to the business in pursuit associated with revenue growth, while autonomic systems plus privacy-enhancing calculation are long-term solutions that provide new options for business transformation in financial solutions . ”

IT spending by financial and expense services firms is forecast to grow 6. 1% within 2022 to $623 billion worldwide. The largest category of spending is IT services, which includes consulting and managed providers and accounts for 42% of total IT spending in the sector at $264 billion dollars. The fastest growing category is software, with investing forecast to increase by 11. 5% in order to $149 billion.

The 3 emerging technologies identified by Gartner collectively contribute to goals to run, grow and transform a business plus have demonstrated use cases in the banking and investment industry.

Trend 1: Generative AI

Gartner predicts that 20% of all test data with regard to consumer-facing use cases will be synthetically generated simply by 2025. Generative AI learns a digital representation associated with artifacts from data plus generates innovative new creations that are similar to the original but does not repeat it.

In banking and investment decision services, application of generative adversarial networks (GANs) and natural language generation (NLG) can be found in most scenarios for fraud detection, trading prediction, synthetic data era and risk factor modeling. It has potential because of the particular ability to take personalization to new heights.

Pattern 2: Autonomic Systems

Autonomic systems are self-managed physical or software systems that learn from their environments and dynamically modify their own algorithms in real-time in order to optimize their own behavior within complex ecosystems. They create an agile set of technology capabilities that will support brand new requirements plus situations, enhance performance and defend against attacks without human intervention.

Currently, autonomic systems are mostly software-based within the financial context. However, humanoid robots are emerging in smart branches that are examples of hardware-based autonomous systems that cater to clients plus customers. They could be applied in autonomous debt management, personal finance assistants and automated lending. Roboadvisors are essentially low-level autonomic systems, although there are still trust concerns due in order to their high level of automation.

Gartner forecasts that by 2024, twenty percent of organizations that sell autonomic techniques or devices will require customers to waive indemnity provisions related to their particular products’ learned behavior.

Trend 3: Privacy-Enhancing Computation

Privacy-enhancing computation (PEC) secures the processing of individual data within untrusted environments — which is increasingly critical due to evolving privacy and data protection laws, as well as growing consumer issues. It uses a variety of privacy-protection techniques to allow value in order to be extracted from information while still meeting compliance requirements.

Gartner predicts that will 60% of large businesses will make use of one or more privacy-enhancing computation techniques in analytics, business cleverness or cloud computing simply by 2025.

Within financial services, data has an inherent role in any analytics, computing and data monetization efforts. The particular adoption associated with PEC will be on the rise in use cases like fraud analysis, intelligence operations, data sharing and anti-money-laundering.

Gartner clients can read more within The Top Strategic Technology Styles in Financial and Expense Services regarding 2022   plus Forecast: Enterprise IT Spending for the Banking and Investment decision Services Market, Worldwide, 2020-2026, 1Q22 Update .

Learn about the particular top priorities for banking and purchase CIOs in 2022 within the complimentary Gartner ebook 2022 CIO Agenda: A Banking and Investment Perspective .

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