An Infosys research report titled, Digital Outlook for the Banking and Insurance Industry, highlights how digital technologies deployed at organisations are improving existing operations, solving new problems, and creating new opportunities. The research polled IT and business decision makers in the banking and insurance industry as part of a global survey to discover the opportunities presented by new digital technologies.
Key findings from the report:
- Big data analytics (73 per cent), cyber security (72 per cent), and enterprise cloud (65 per cent) are the three digital technologies being utilised most commonly by banks today. Whereas cyber security (66 per cent), big data analytics (65 per cent), enterprise cloud (58 per cent), and artificial intelligence (AI) (45 per cent) are the four digital technologies being utilised the most by insurance companies today.
- According to the banks surveyed, the use of data analytics for deep personalisation (54 per cent), open banking APIs to facilitate collaboration within the ecosystem (50 per cent), and paperless trade finance driven by blockchain and IoT (42 per cent) are among the top trends over the next three years which will make a positive impact on their organisation. On the other hand, within the insurance companies surveyed, big data for customer insight and wallet share (50 per cent), cyber security for data protection and compliance (50 per cent), AI for underwriting automation (48 per cent), and technology for business rules extraction (48 per cent) are the most commonly reported trends for the next three years which will make a positive impact on their organisation.
- Banks plan to invest in digital technologies in the coming 12 months – the money will go towards known priorities, such as preventing fraud, improving customer experience, and channel innovation, rather than the trends that will have the most positive impact on the business over the next three years. Within the Insurance providers the investments will go in cyber security and gamification (74 per cent each), big date (63 per cent) and AI (56 per cent).
- Majority of the respondents from both banking and insurance companies reiterated that their organisation could improve both existing skills and technologies in preparation for implementing the top trends of the coming three years. However, budget was a problem for 56 per cent of the insurance companies in the survey.