Cloud, Mobility Push IT Spend In Indian Banks

Adoption of new and efficient technologies is helping Indian banks build their competitive edge. The drivers of this adoption are growing use of safe and secure net banking facilities, launch of mobile banking by various banks and RBI’s push for financial inclusion.

According to Frost & Sullivan the expenditure on banking technology is expected to be around 20 percent of the total expenditures by banks and will grow at an annual rate of 14.2 percent.

Nishchal Khorana, Head of Consulting, Information & Communications Technology Practice, Frost & Sullivan, South Asia and Middle East, said, “IT investments in the sector will be driven by multiple forces. These include, the need to comply with RBI norms, support changing business models and leverage cloud computing and mobility solutions, which will result in comprehensive transformation in the IT landscape of large, cooperative and rural banks”.

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Hanuman Tripathi, Group Managing Director, Infrasoft Technologies Limited, said, “Several opportunities are emerging in today’s banking and financial services environment that small and large banks alike can leverage to take their businesses to the next level. These opportunities are mostly driven by technology. Two of these, the advent of cloud-based Core Banking and related applications, and the mobile platform, are rapidly enhancing transactions in the urban centres and the banks’ reach in the rural sector.”