Infosys Bank Tech Index – Volume 3: AI spend dominates bank budgets by size and growth
Infosys has released volume three of its Bank Tech Index, which analyzes data from nearly 400 of the largest banks, by assets, in Asia Pacific, Europe, Latin America, the Middle East and Africa, and North America. The report, developed by the Infosys Knowledge Institute, the research and thought leadership arm of Infosys, gathers insights on technology spending, staffing, and performance from a panel of leading global banks. As per the research findings, banks are shifting their focus from cost reduction to innovation. In line with renewed focus on innovation, banks continue increasing their spend and talent recruitment for artificial intelligence (AI) faster than any other technology. The findings further emphasize that AI will deliver transformational business outcomes for banks, both on growth and efficiency.
The key findings of Infosys Banking Technology Index – Volume 3 are as follows:
- AI spend is growing the fastest – AI accounts for over 30% of banks allocated technology budgets in calendar Q2 of 2024 and is likely to increase in share through calendar Q3. AI spending by banks is forecasted to grow by 6.2% between calendar Q2 to Q3 of 2024, the fastest among all technologies.
- Focus on innovation rises as cost reduction falls – Innovation increased in strategic importance by 5 points since calendar Q1 of 2024, while cost reduction fell by 5 points. In line with this, banks are expected to increase tech budgets by a median 3%, with nearly one-quarter of banks forecasting 5% or higher growth in tech investments.
- Large language models (LLMs) defy declining recruitment trend – Recruitment is expected to fall for all technology areas, except those related to LLMs roles. Banks report that recruitment for roles related to LLMs will grow by more than 70% between April – September of 2024. The difficulty to recruit LLM talent also increased.
To read the full report, please visit here.
About the Infosys Bank Tech Index
The quarterly report indexes quantitative data on technology priorities, technology spending, talent trends, and skills among 396 major banks in the Asia Pacific, Europe, Middle East, Latin America, and North America regions with assets over $10 billion. It provides decision makers with dynamic insights and evolving patterns across the technology landscape. The report categorizes banks according to their financial performance (calculated as revenue divided by total net assets). It also compares banking trends in advanced economies and emerging or developing economies.
