Global banking, investment services to increase tech spending, says Gartner

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Global banking, investment services to increase tech spending, says Gartner

Wednesday June 21, 2023,

4 min Read

IT spending by banking and investment services to increase in 2023

The IT spending by banking and investment services across the globe is forecast to total $652.1 billion in 2023—an increase of 8.1% from 2022, according to Gartner. Spending on software will see the largest growth with an increase of 13.5% in 2023.

“Current economic headwinds have changed the context for technology investments in banking and investment services this year,” said Debbie Buckland, Director Analyst at Gartner. “Rather than cutting IT budgets, organisations are spending more on the types of technologies that generate significantly higher business outcomes. Spending on software, for example, is shifting away from building it in-house, in favour of buying solutions that generate value from investments more rapidly.”

According to the Gartner 2023 CIO and Technology executive survey, banking and investment services CIOs will spend the largest portion of new or additional funding in 2023 on cybersecurity, data and analytics, integration technologies, and cloud.

More than half of them plan to increase investments in the cloud while reducing IT spending in their own data centres. This is reflected by slower data centre system spending growth from 13.2% in 2022 to 5.7% in 2023. Banks are disengaging from tangible assets and capital expenditure (capex) in favour of adopting services and operating expenditure (opex), to meet evolving customer and market expectations.

Lloyds Banking Group of UK to open tech centre in Hyderabad

Lloyds Banking Group, one of the leading financial services groups in the UK, will set up a new technology centre in Hyderabad with the initial target of hiring around 600 people.

Operating as part of Lloyds Banking Group, Lloyds Technology Centre forms part of the Group’s £3 billion strategic investment over the next three years to transform its digital offering. It will hire people who are specialists in technology, data and cybersecurity roles as it further enhances the Group’s customer experience and builds its in-house technical capability.

The Group, which operates the UK’s largest digital bank and has over 20 million digitally active users, plans to further expand its digital capability by opening a new technology centre later this year.

Lloyds Technology Centre will not provide any banking services but will focus on using technology and digital, data and analytics capabilities to drive innovation and end-to-end product delivery, which is a step forward in the Group’s approach to international resourcing.

LTIMindtree launches generative AI platform

LTIMindtree has launched, an enterprise-ready generative AI platform designed to accelerate the concept-to-value journey for businesses using mindful AI principles.

According to the company, effectively manages proprietary and industry-specific data, while factoring its ethical use, sustainability, privacy and security. The platform-based architecture of caters to the business requirements of creators who build generative AI solutions, admins who manage, and users who consume governed generative AI solutions.

The company claimed that guarantees up to a 40-50% reduction in time and effort for app modernisation and cloud migration programmes. will be available for clients globally through LTIMindtree’s generative AI studios in the US, the UK, France and India.

Capgemini, AWS launch new platform for aerospace industry

Capgemini and Amazon Web Services (AWS) have launched Lifecycle Optimization for Aerospace. The platform aims at accelerating the adoption of circular economy practices in the aviation industry by automating the inspection process, optimising the lifecycle analysis of aircraft parts, and guiding decisions to extend their lifespan.

Several major players in the aviation sector, including Air France and Safran, participated in its development and will be amongst the first users of the platform.

Collection and analysis of in-service operations are secured within the Lifecycle Optimization for Aerospace platform to provide a comprehensive view and understanding of the usage of a part over time. The next phase will entail extending the capabilities of the platform to the recycling of these parts and securing the possibility to valorise the materials of the non-serviceable parts.

The platform has been developed by Capgemini and built on AWS’s Cloud. Artificial Intelligence and Machine Learning services have been specifically developed and trained on data models. The platform consolidates historical operation data and reconstructs complete traceability of all the constituent parts of an aircraft.

Edited by Kanishk Singh