1、Infosys Bank Tech Index:Volume 3 August 2024|1External Document 2024 Infosys Limited Knowledge InstituteINFOSYS BANKTECH INDEXVOLUME 3 AUGUST 2024Infosys Bank Tech Index:Volume 3 August 2024|3External Document 2024 Infosys Limited Knowledge InstituteContentsIntroduction 4Key findings summary 6Techno

2、logy strategic priorities 10Technology budget analysis 14Technology spending report 22Technology talent 24Tech hotspots:our Bank Tech IntensityBarometer 34Appendix 36Knowledge InstituteIntroductionExternal Document 2024 Infosys Limited 4|Infosys Bank Tech Index:Volume 3 August 2024Infosys Bank Tech

3、Index:Volume 3 August 2024|5External Document 2024 Infosys Limited Knowledge InstituteWelcome to Volume 3 of the Infosys Bank Tech Index.Tides are turning in banking.From a strategic perspective,banks have increased their focus on innovation,while there are early signs that they are decreasing their

4、 focus on cost reduction.As predicted in Volume2 of our Infosys Bank Tech Index,AI has outpaced all other technologies to become the largest contributor to technology budgets.AI also continues to be the fastest growing area of technology spend for banks globally.AI will drive a lot of innovation in

5、the coming months and years.It will help banks reimagine their ways to serve clients and reduce costs.However,AIs rapid growth calls forward increased concerns for ethical,data,and cybersecurity threats.These are interesting times for the industry,and the latest edition of the Infosys Bank Tech Inde

6、x captures both the opportunities and the concerns banking leaders are seeing and responding to.This is both an exciting and a challenging time as banks balance AI innovation with safety and security,and the Infosys Bank Tech Index will help bring clarity to leaders seeking to understand this inflec

7、tionpoint.The latest findings from the Infosys Bank Tech Index will help senior leaders understand:How senior executives decide to spend their budgets across different technology areas The effectiveness of technology spending The evolving technology talent demand within banks We will continue to tra

8、ck these trends in the coming quarters.If you have any questions or if you would like to discuss these trends,please reach out to us.Dennis GadaEVP,Global Head,Banking&FinancialServicesIntroducing the Infosys Bank Tech Index6|Infosys Bank Tech Index:Volume 3 August 2024Knowledge InstituteKey finding

9、s summaryExternal Document 2024 Infosys Limited Infosys Bank Tech Index:Volume 3 August 2024|7External Document 2024 Infosys Limited Knowledge InstituteTide turns toward innovation,but regulatory concerns dominateNotes:1.Growth rates over April to September 2024.2.Refer to page 15 for further detail

10、s.Reduce costsDevelop new innovations/new product oferingsNotes:1.Priorities are scored on a 100-point scale.2.Chart shows only 2 of 7 priorities surveyed.3.Refer to page 11 for further details.4.Volume 2(conducted January 2024),Volume 3(conducted April 2024).Focus on innovation rises as cost reduct

11、ion focus fallsBut spending will grow fastest on regulatory projectsProjected spending change during April to September 2024(median)RegulatoryIT operationsNew projects4.0%2.9%2.0%010203040Average relative weightBank tech leaders strategic priorities Volume 2Volume 33227510-5+58|Infosys Bank Tech Ind

12、ex:Volume 3 August 2024External Document 2024 Infosys Limited Knowledge InstituteAI budgets surpass cybersecurity,but recruitment falls Percentage change in recruiting per bankfrom Volume 2 to Volume 3Recruitment expected to fall for all tech areas,except large language models1.Percentage change rep

13、resents the change in recruitment for each technology from Volume 2 to Volume 3.2.Refer to page 26 for further details on recruitment.Notes:In addition to a substantial increase in recruitment,largelanguage models skills have become nearly twice as hard to recruitVoice technologies Virtual or augmen

14、ted reality Blockchain Quantum computing Real-time paymentsBanking as a serviceplatformOpen banking or APIs Cybersecurity Cloud computing Robotic processautomationMachine learningDeep learning or neuralnetworks Large languagemodels71%-35%-31%-11%-55%-55%-47%-22%-62%-15%-66%-60%-45%Artifcial intellig

15、enceDespite an apparent drop in recruiting demand,cybersecurity and machine learning remain the toughest areas to recruitNotes:1.Refer to page 16 for further details.2.Volume 2(January to March 2024),Volume 3(April to June 2024).See Appendix A.Other technologiesCybersecurityArtifcial intelligenceArt

16、ifcial intelligence and cybersecurity now account foralmost 60%of quarterly bank tech budgets202456312742Cloud and real-timepayments facedbiggest reductionin budget allocationMachine learning andlarge language modelsaccount for almost90%of the growth in AIVolume 2Volume 3Infosys Bank Tech Index:Volu

17、me 3 August 2024|9Knowledge InstituteExternal Document 2024 Infosys Limited Knowledge InstituteTechnology strategic prioritiesFocus shifts to innovation,but cost reduction remains a priorityExternal Document 2024 Infosys Limited 10|Infosys Bank Tech Index:Volume 3 August 2024External Document 2024 I

18、nfosys Limited Knowledge InstituteComparison with Volume 2Focus shifts to innovation and product offerings from cost reductionBanks decrease focus on reducing costs Cost reduction remains the top strategic priority for banks in Volume 3.However,its importance has decreased by 5 percentage points fro

19、m Volume 2.Innovation rises in priority Banks have significantly increased their focus on developing new innovations and product offerings by 5 percentage points compared to Volume 2.Infosys Bank Tech Index:Volume 3 August 2024|11Average relative weight(Total=100)010203040Strategic priorityReduce co

20、stsTransform business modelSupport or drive business growthKeep the lights onRespond to competition32161612122717141413Develop new innovations/new product oferings105Comply with regulatory requirements76Volume 3Volume 2Notes:1.N=396,where N is the number of banks surveyed in Volume 3.2.N=324,where N

21、 is the number of banks surveyed in Volume 2.3.Volume 2(conducted January 2024),Volume 3(conducted April 2024).12|Infosys Bank Tech Index:Volume 3 August 2024External Document 2024 Infosys Limited Knowledge InstituteCost reduction beds in further as the strategic priorityCost reduction beds in furth

22、er as key focusReducing costs is the top priority among banks across regions Cost reduction is the top priority for banks globally,irrespective of their region,with only a slight decrease in Europe and the Middle East and Africa.North America,Europe,and APAC increase focus on innovation These region

23、s have increased priority on innovation since Volume 2 to match the focus by Latin America and the Middle East and Africa.Business model transformation gains priority in Europe to match other regions While transforming business model is second on the strategic priority list,it was less of a priority

24、 for North American banks.Strategic priorityOverallAPACEuropeLatin AmericaMiddle East and AfricaNorth AmericaKeep the lights onSupport or drivebusiness growthReduce costsTransformbusiness modelRespond tocompetitionComply withregulatory requirementsDevelop new innovation/new product oferings271714141

25、31062718141413115261814141396281814131110626171412131162715151413107Notes:1.N=396,where N is the number of banks surveyed in Volume 3.Average relative weight(Total=100)RegionInfosys Bank Tech Index:Volume 3 August 2024|13External Document 2024 Infosys Limited Knowledge Institute14|Infosys Bank Tech

26、Index:Volume 3 August 2024Knowledge InstituteTechnology budget analysisAI overtakes cybersecurity as the largestbudget categoryExternal Document 2024 Infosys Limited Infosys Bank Tech Index:Volume 3 August 2024|15External Document 2024 Infosys Limited Knowledge InstituteTotal tech spending set to ri

27、se 3%Total tech spending stood at$78 billion in the first quarter of calendar 2024 Between Volume 2 to Volume 3 of our index,banks increased their total quarterlytech spending from$76 billion to$78 billion.CapEx accounted for two-thirds of total tech spend CapEx was at$50 billion and accounted for 6

28、5%of total technology spending.OpEx was at$28billion and accounted for the remaining 35%.IT operations represented the largest component of tech spending Total IT operations spending was$31 billion and accounted for 40%of total tech spend.New projects accounted for the least of total spend at 24%.To

29、tal tech spending is expected to rise by a median of 3%between April and September 2024 Nearly one-fourth of banks expect to increase tech spending by more than 5%.Overall tech spending growth(%)01020309%8%16%12%9%4%4%2%1%2%1%0%0%Percentage of banks(%)1245678910 11 12 13 14Proportion of banks by tec

30、h spending growthNotes:1.N=396,where N is the total number of banks that responded to spending questions in Volume 3.2.N=320,where N is the total number of banks that responded to spending questions in Volume 2.3.Volume 2(January to March 2024),Volume 3(April to June 2024).Total technology spending

31、by category and typeSpending categoryIT operationsNew projectsRegulatoryCapExOpEx$31$19$28$78$33$20$23$76Volume 3Volume 2$78$28$50$76$27$49Volume 3Volume 2Tech spending is expected to increase by 3%over nextsix monthsSpending in billions(US$)2.6%Spending type30%316|Infosys Bank Tech Index:Volume 3 A

32、ugust 2024External Document 2024 Infosys Limited Knowledge InstituteAI leaps ahead as main area of budget allocationTechnology budget distribution change by volumeAI and cybersecurity represent 60%of overall budget allocation Banks allocate 31%of their technology budget to AI,and 27%to cybersecurity

33、 in Volume 3,an increase of 11 and 3 percentage points,respectively.Within AI,LLMs and ML drive growth Banks have increased their allocation on large language models(LLMs)and machine learning(ML)by 5 percentage points each.RPA finds a spurt in budget distribution Allocation to robotic process automa

34、tion(RPA)among banks has jumped 4 percentage points to 9%of technology budgets in Volume 3.Budget allocation for open banking,real-time payments,and cloud falls Focus on open banking(down 7 percentage points),real-time payments(down 4 percentage points),and cloud computing(down 3 percentage points)r

35、educes.0%10%20%30%3120138331 11 110587272411147941195TechnologyArtifcial intelligenceMachine learningQuantum computingBlockchainVoice technologiesVirtual or augmented realityLarge language modelsDeep learning or neural networksCybersecurityCloud computingBanking as a service platformOpen banking or

36、APIsRobotic process automationReal-time payments48231.Artifcial intelligence includes machine learning,deep learning,and large language models.2.N=396,where N is the number of banks surveyed in Volume 3.3.N=324,where N is the number of banks surveyed in Volume 2.4.Volume 2(January to March 2024),Vol

37、ume 3(April to June 2024).Notes:Average investment allocation(%)Volume 3Volume 2External Document 2024 Infosys Limited Knowledge InstituteBank spending on AI is expected to grow more than all other technologiesExpected technology spending change during April to September 2024AI leads the race on spe

38、nding growth Growth in AI spending is expected to increase at 6.2%during April to September 2024.This is nearly two times higher than the expected growth of cybersecurity spending and over four times the expected growth in RPA spending.Machine learning spending is expected to increase by 4.1%,outpac

39、ing all other technologies.Infosys Bank Tech Index:Volume 3 August 2024|17Projected spending change during April to September 2024Machine learning Cybersecurity Robotic process automationLarge language models Cloud computing Deep learning or neural networks Banking as a service platform Open banking

40、 or APIs Quantum computing Real-time payments Blockchain Voice technologies Virtual or augmented reality 0.0%0.0%0.1%0.1%0.1%0.2%0.3%0.7%0.9%1.4%1.5%2.6%4.1%1.N=396,where N is the number of banks surveyed in this research.Note:18|Infosys Bank Tech Index:Volume 3 August 2024External Document 2024 Inf

41、osys Limited Knowledge InstituteAPAC banks lead on planned AI spendExpected technology spending change next quarter by regionRegionIntended average technology spending growth(%)Voice technologies Virtual or augmented reality Blockchain Quantum computing Real-time payments Banking as a service platfo

42、rmOpen banking or APIs Cybersecurity Cloud computing Robotic process automationLarge language models Deep learning or neural networks Machine learning Artifcial intelligence6.2%4.1%0.7%1.4%1.5%0.9%2.6%0.2%0.3%0.1%0.1%0.1%0.0%0.0%6.8%4.5%0.6%1.7%1.4%0.9%2.2%0.1%0.2%0.1%0.1%0.0%0.0%0.0%5.6%3.9%0.6%1.0

43、%1.9%1.0%2.8%0.5%0.2%0.1%0.0%0.1%0.0%0.0%6.3%4.6%0.9%0.8%1.9%0.7%2.4%0.1%0.5%0.1%0.1%0.0%0.0%0.0%5.9%4.0%0.5%1.4%1.8%0.8%2.8%0.1%0.3%0.0%0.1%0.1%0.1%0.1%6.0%3.8%0.7%1.5%1.1%1.0%2.7%0.0%0.4%0.2%0.2%0.0%0.0%0.1%TechnologyOverallAPACEuropeLatin AmericaMiddle East and AfricaNorth America1.Artifcial inte

44、lligence includes machine learning,deep learning,and large language models.2.N=396,where N is the number of banks surveyed in Volume 3.Notes:Infosys Bank Tech Index:Volume 3 August 2024|19External Document 2024 Infosys Limited Knowledge InstituteAPAC and Latin America lead growth in AI budgets Banks

45、 in APAC and Latin America expect to grow AI spending by 6.8%and 6.3%,respectively,higher than overall average of 6.2%.European banks expect to grow AI spending by 5.6%.ML spending growth led by APAC and Latin American banks Within AI,banks expect to grow ML spending the most,followed by spending on

46、 LLMs and deep learning.APAC and Latin America lead on growth in ML spending,while APAC and North American banks lead growth for LLMs spending.European and Middle East banks lead growth on cybersecurity European and the Middle East and African banks expect to increase cybersecurity spending by 2.8%,

47、higher than the overall average of 2.6%.APAC and Latin America to lead growth in AI spending20|Infosys Bank Tech Index:Volume 3 August 2024External Document 2024 Infosys Limited Knowledge InstituteML and RPA budgets are discretionaryRelation between tech budget allocation and tech OpExThe relationsh

48、ip between tech OpEx and ML and RPA Banks that are growing their OpEx fastest are typically allocating more spend to ML and RPA,than cybersecurity.This indicates that spending on ML and RPA is discretionary.The discretionary nature of ML and RPA This indicates that growth in OpEx is likely to be dri

49、ven by interest in ML and RPA projects.This also indicates that this spending is discretionary and at risk of falling if the macroeconomic situation requires budget tightening.Machine learningRobotic processautomationBudget allocation(%)CybersecurityTechnology OpEx01020301.The percentage of budget a

50、llocation to ML and RPA rises when banks increasetech OpExThere is a strong correlation between the percentage oftech budget allocation to ML and RPA and rising tech OpEx,and vice versa.Thiscould perhaps indicate that ML and RPA are correlated to discretionary spend.Note:Less spendingMore spendingCy

51、bersecurityMachine learningRobotic process automationExternal Document 2024 Infosys Limited Knowledge InstituteInfosys Bank Tech Index:Volume 3 August 2024|2122|Infosys Bank Tech Index:Volume 3 August 2024External Document 2024 Infosys Limited Knowledge InstituteTechnology spending reportCapEx share

52、 of technology spending continues to growInfosys Bank Tech Index:Volume 3 August 2024|23Knowledge InstituteRegulatory spend to rise the fastestTotal technology spending by category and typeRegulatory spending expected to grow the fastest Regulatory spending overall(across CapEx and OpEx)is likely to

53、 grow by 4%,higher than IT operations(2.9%growth)and new projects(2%growth).External Document 2024 Infosys Limited Note:1.Growth rates over April to September 2024.Spending will grow fastest on regulatory projectsProjected spending change during April to September 2024(median)RegulatoryIT operations

54、New projects4.0%2.9%2.0%Knowledge InstituteTechnology talentAI and cybersecurity are the mostdifficult skills for banks to acquire24|Infosys Bank Tech Index:Volume 3 August 2024External Document 2024 Infosys Limited External Document 2024 Infosys Limited Knowledge InstituteInfosys Bank Tech Index:Vo

55、lume 3 August 2024|2526|Infosys Bank Tech Index:Volume 3 August 2024External Document 2024 Infosys Limited Knowledge InstituteBanks focus on cybersecurity and AI hiringExpected technology recruitment allocation by sizeTotal asset categoryTechnology$50 bn to$250 bn(Expected techjobs per bank=185)$10

56、bn to$50 bn(Expected techjobs per bank=89)More than$250 bn(Expected techjobs per bank=393)Overall(Expected techjobs per bank=195)Machine learning 27%23%21%23%Deep learning or neural networks 3%7%8%7%Large language models 9%10%9%9%Robotic process automation8%11%10%10%Cloud computing 7%8%7%7%Cybersecu

57、rity 31%24%29%28%Open banking or APIs 1%2%1%1%Banking as a service platform 5%5%5%5%Real-time payments 5%4%4%4%Quantum computing 2%3%3%3%Blockchain 1%1%2%1%Virtual or augmented reality 1%1%0%1%Voice technologies 1%1%1%1%1.N=396 banks,where N is the number of banks surveyed in Volume 3.Note:External

58、Document 2024 Infosys Limited Knowledge InstituteBanks expected to recruit 195 full-time equivalents on average from April to September 2024 Banks with assets between$10 billion and$50 billion expect to recruit 90 technology staff,banks with assets between$50 billion and$250 billion expect to recrui

59、t 184,and banks with assets over$250 billion expect to recruit 393 technology staff on average.Cybersecurity and AI talent are in demand Two-thirds of technology positions banks are recruiting relate to cybersecurity or AI.Recruitment for AI technology is expected to account for 39%of tech hiring,fo

60、llowed by cybersecurity with 28%.Recruitment for ML expected to rise more among banks with assets between$10 billion and$50 billion 27%of recruitment expected to be for ML among banks with assets between$10 billion-$50 billion,higher than banks with larger assets.Infosys Bank Tech Index:Volume 3 Aug

61、ust 2024|2728|Infosys Bank Tech Index:Volume 3 August 2024External Document 2024 Infosys Limited Knowledge InstituteCybersecurity and AI to drive recruitment across regionsExpected technology recruitment allocation by region22%22%23%25%24%9%5%6%5%6%9%8%11%13%9%11%8%12%10%10%7%6%7%10%9%27%36%24%20%27

62、%1%1%2%1%3%5%6%5%4%4%4%3%5%7%3%3%3%3%3%2%1%2%1%1%2%1%1%1%1%0%1%1%1%1%1%Machine learning Deep learning or neural networks Large language models Robotic process automation Cloud computing Cybersecurity Open banking or APIs Banking as a service platform Real-time payments Quantum computing Blockchain V

63、irtual or augmented reality Voice technologies 23%7%9%10%7%28%1%5%4%3%1%1%1%1.N=396,where N is the number of banks surveyed in Volume 3.Note:APAC(Expected techjobs per bank=277)Europe(Expected techjobs per bank=217)Latin America(Expected techjobs per bank=186)Middle East and Africa(Expected techjobs

64、 per bank=137)North America(Expected techjobs per bank=130)TechnologyOverall(Expected techjobs per bank=195)RegionExternal Document 2024 Infosys Limited Knowledge InstituteAPAC to lead average expected full-time equivalents recruitment per bank during April to September 2024 APAC banks expect to rec

65、ruit 277 full-time equivalents(FTEs)during April to September 2024,followed by Europe with 215 FTEs.North America is expected to recruit the least at 129 FTEs for its technology staff.Cybersecurity recruitment to be highest in APAC,Europe,and North America Plagued by rising cybersecurity issues,thes

66、e regions expect to recruit the most cybersecuritytalent.Europe expected to recruit a smaller proportion of AI positions Banks in Europe are expected to recruit a significantly smaller proportion(34%)of talent in the field in AI than banks in the rest of the world(39%).Latin America and Middle East

67、and Africa lead on LLM talent recruitment Latin America(11%)and the Middle East and Africa(12%)are expected to recruit relatively more in LLMs compared to peers(9%).Infosys Bank Tech Index:Volume 3 August 2024|2930|Infosys Bank Tech Index:Volume 3 August 2024External Document 2024 Infosys Limited Kn

68、owledge InstituteHowever,recruitment is cooling down across regionsAverage expected technology recruitment per bank by regionTech recruitment slows most in Europe and North America Average technology recruitment slows the most in Europe(down 48%),followed by North America(down 42%).Tech recruitment

69、slows least in the Middle East and Africa Down 21%,the Middle East and Africa has the lowest decrease in average technology recruitment.North AmericaMiddle Eastand AfricaLatin AmericaEuropeAPACAverage expected FTE recruitment per bank277217186137130443413309173225-37%-48%-40%-21%-42%Volume 3Volume 2

70、Notes:1.N=396,where N is the number of banks surveyed in Volume 3.2.N=324,where N is the number of banks surveyed in Volume 2.3.Volume 2(conducted January 2024),Volume 3(conducted April 2024).RegionExternal Document 2024 Infosys Limited Knowledge InstituteLargest banks expect to reduce hiring the fa

71、stestAverage expected technology recruitment per bank by sizeTech recruitment slows most among largest banks Average technology recruitment slows the most(down 39%)among banks with assets over$250 billion.Infosys Bank Tech Index:Volume 3 August 2024|31More than$250 bn$50 bn to$250 bn$10 bn to$50 bn1

72、8539326264989142-37%-29%-39%Volume 3Volume 2Average expected FTE recruitment per bankTotal asset categoryNotes:1.N=396,where N is the number of banks surveyed in Volume 3.2.N=324,where N is the number of banks surveyed in Volume 2.3.Volume 2(conducted January 2024),Volume 3(conducted April 2024).32|

73、Infosys Bank Tech Index:Volume 3 August 2024Knowledge InstituteRecruitment for LLMs to riseAverage expected technology recruitment per bank by technologyThe only tech area to increase recruitment is LLMs Average technology recruitment for LLMs is expected to rise 71%,although this is of a small base

74、 of 20 people per bank.External Document 2024 Infosys Limited Intended tech recruitment quarter on quarter change(%)Voice technologies Virtual or augmented reality Blockchain Quantum computing Real-time paymentsBanking as a serviceplatformOpen banking or APIs Cybersecurity Cloud computing Robotic pr

75、ocessautomationMachine learningDeep learning or neuralnetworks Large languagemodels71%-35%-31%-11%-55%-55%-47%-22%-62%-15%-66%-60%-45%1.Percentage change represents the change in recruitment for each technology from Volume 2 to Volume 3.Note:Percentage change in recruiting per bankfrom Volume 2 to V

76、olume 3Artifcial intelligenceInfosys Bank Tech Index:Volume 3 August 2024|33External Document 2024 Infosys Limited Knowledge InstituteBanks struggle to recruit for key technologiesTech areas difficult to acquire by quarter on quarterCybersecurity and AI talent are hardest to acquire Banks report tha

77、t these technologies are the hardest for them to recruit talent and become more difficult.When comparing data from Volume 3 to Volume 2,the relative difficulty of recruiting LLM talent has increased 3 points.Volume 3Volume 20102030TechnologyArtificial intelligenceMachine learning Large language mode

78、ls Deep learning or neural networks Cybersecurity Robotic process automation Cloud computing Banking as a service platform Real-time payments Open banking or APIs Quantum computing BlockchainVirtual or augmented realityVoice technologies2927151485682826111091076564734221 100Tech skill difficulty sco

79、re1.Tech skill difficulty score:This shows the difficulty banks face in acquiring human resources for technologycompared to other technologies.This is based on the average weight given to a technology when respondentswere asked which technology areas were the most difficult to recruit.2.N=396,where

80、N is the number of banks surveyed in Volume 3.3.N=324,where N is the number of banks surveyed in Volume 2.4.Volume 2(conducted January 2024),Volume 3(conducted April 2024).Notes:Knowledge InstituteTech hotspots:our BankTech IntensityBarometerKnowledge InstituteCybersecurity remains most importantExt

81、ernal Document 2024 Infosys Limited 34|Infosys Bank Tech Index:Volume 3 August 2024Infosys Bank Tech Index:Volume 3 August 2024|35External Document 2024 Infosys Limited Knowledge InstituteAItechnologiesseethelargestboostinimportanceImportance of LLMs and ML jumps the most among banking technologies

82、LLMs and ML are ranked fourth and second,respectively,in importance,and categorized as high importance.RPA rises while cloud wanes in importance RPA moved into the top three technologies for banks,outpacing cloud which fell in importance.Cybersecuritys importance outstrips all other technologies Wit

83、h a score of 96 out of 100 points,cybersecurity ranks as the most important banking technology.ML and RPA follow next.Technology Intensity barometer0 20406080100Technology CybersecurityMachine learning Robotic process automation Deep learning or neural networks Banking as a service platform Real-tim

84、e payments Open banking or APIs Quantum computing BlockchainVirtual or augmented realityVoice technologies Large language models959460704955 Cloud computing6154425449484747464250413739353731353234HighMediumLowTechnology intensity barometerVolume 3Volume 21.The“technology intensity barometer”measures

85、 the importance of a technology to banks in our survey.The components ofthe barometer are(a)tech spending in the last quarter,(b)expected tech spending growth in the current quarter,(c)technology staff expected to be added in the current quarter,and(d)difficulty in acquiring staff for each technolog

86、y area.The score is on a scale of 0 to 100 with 0 being much less important than everything else,50 indicating an average(or indistinct)level importance,and 100 being most important.2.N=396,where N is the number of banks surveyed in Volume 3.3.N=324,where N is the number of banks surveyed in Volume

87、2.4.Volume 2(conducted January 2024),Volume 3(conducted April 2024).Notes:Knowledge InstituteAppendix36|Infosys Bank Tech Index:Volume 3 August 2024External Document 2024 Infosys Limited Infosys Bank Tech Index:Volume 3 August 2024|37External Document 2024 Infosys Limited Knowledge InstituteAppendix

88、 A:MethodologyThe Infosys Bank Tech Index is a quarterly,survey-based research report that indexes technology investment and talent trends across the banking industry.The third edition gathers quantitative data from 396 of the largest banks by total assets in Asia Pacific,Europe,Latin America,the Mi

89、ddle East and Africa,and North America.Our survey,exclusive to banks with assets surpassing$10 billion,represents 94%of this asset pool.This quarterly research gathers insights on technology spending,staffing,and performance from a panel of leadingbanks.Our executive panelists are key decision maker

90、s for their respective banks technology investments and talent strategies.Panel respondents will remain confidential to maintain data privacy and ethical considerations.The research delves into the following areas:1.Technology strategic priorities:Current priorities of banks related to growth,operat

91、ional efficiency,and transformation.2.Technology spending report:Investment levels across CapEx and OpEx,IT operations,new projects,and regulatory.3.Technology budget forecast:Current technology budget distribution and expected technology budget distribution4.Tech hotspots our bank tech intensity ba

92、rometer:A measure of intensity to identify where technology investment and hiring are pressurizing the talent market.5.Technology talent:The distribution of technology vacancies where banks expect to acquire talent.6.Technology project success:The proportion of technology projects that are on track.

93、As data is gathered in subsequent quarters,this research will provide a dynamic view of trends,track evolving patterns,and help decision-makers at banks take informed decisions about technology and talent.In Volume 3,we asked our panel to provide the spending estimates for their current quarter.Depe

94、nding on the banks budget cycle this could be any three month period between January 2024 and July 2024.For simplicity,we consider Volume 3 to cover the period April to June 2024.Forecasts for spending cover the period of April to September 2024.In this report we refer to banks performance,calculate

95、d through the asset turnover ratio(revenue divided by net total assets)to provide a consistent measure of operational performance across thesample.38|Infosys Bank Tech Index:Volume 3 August 2024External Document 2024 Infosys Limited Knowledge InstituteAppendix B:Panel distributionNorth AmericaMiddle

96、 East and AfricaLatin AmericaEuropeAPAC114 banks,29%69 banks,17%49 banks,12%55 banks,14%109 banks,28%$10 bn to$50 bn$50 bn to$250 bnMore than$250 bn160 banks,40%143 banks,36%93 banks,23%Banks by regionBanks by total assetsOur sample represents 94%of banking assetsfor banks with over$10 billion in as

97、setsNumber of banks with morethan$10 billion in assetsTotal assets(in trillions US$)39629$121$1094%Total bankingassetsIn surveyNot in surveyKnowledge InstituteInfosys Bank Tech Index:Volume 3 August 2024|39External Document 2024 Infosys Limited 40|Infosys Bank Tech Index:Volume 3 August 2024External

98、 Document 2024 Infosys Limited Knowledge InstituteAppendix C:Technology budget distribution for APACAPAC banks focused on AI and cybersecurity Banks allocated 32%of budgets to AI,followed by cybersecurity with 25%in their most recent reported quarter.Increasing focus on RPA APAC banks are looking to

99、 increase spending on RPA.Banking as a service and open banking saw a dip in allocation APAC banks allocation to banking as a service and open banking reduced by 4percentage points each.APAC0102030Average investment allocation(%)TechnologyArtifcial intelligenceMachine learningLarge language modelsDe

100、ep learning or neural networksCybersecurityCloud computingBanking as a service platformOpen banking or APIsRobotic process automationReal-time paymentsQuantum computingBlockchainVoice technologiesVirtual or augmented reality243210155101082225131111795697433321 11 1Volume 3Volume 2855-23-2-4-43-30-10

101、01.N=114,where N is total number of APAC banks that participated in the survey.2.Volume 2(January to March 2024),Volume 3(April to June 2024).Notes:Percentagepoint change Infosys Bank Tech Index:Volume 3 August 2024|41External Document 2024 Infosys Limited Knowledge InstituteBanks set to boost spend

102、ing on AI The spending on AI by APAC banks is likely to increase to 6.8%which is higher than the overall average of 6.2%.This growth will be led by a 4.5%growth in machine learning spending.Cybersecurity spending growth lags peers APAC banks spending on cybersecurity at 2.2%is lower than the 2.6%spe

103、nding by peers on the technology.Technology spending growth for APACVirtual or augmented reality Voice technologies Blockchain Real-time payments Quantum computing Open banking or APIs Banking as a service platform Cloud computing Robotic process automationLarge language models Cybersecurity Machine

104、 learning Artifcial intelligenceDeep learning or neural networks APAC012345676.84.52.21.70.61.40.90.20.10.10.10.00.00.0Intended average technology spending growth(%)1.N=114,where N is total number of APAC banks that participated in the survey.Note:42|Infosys Bank Tech Index:Volume 3 August 2024Exter

105、nal Document 2024 Infosys Limited Knowledge InstituteAppendix C:Technology budget distribution for Europe European banks see a surge in budget allocation Banks allocated the largest share of budget at 29%to AI,a jump from 14%in Volume 2.This increase was led by allocation to ML and LLMs.Cybersecurit

106、y followed AI with a share of 26%of technology budget allocation in their most recent reported quarter.RPA gathers momentum Banks in Europe indicated an increase in allocation to RPA at 9%,in line with the average bank in our survey.Banking as a service,real-time payments,and cloud see a fall in all

107、ocation European banks allocation to open banking,real time payments and cloud computing dropped significantly from Volume 2.Volume 3Volume 2TechnologyArtifcial intelligenceMachine learningLarge language modelsDeep learning or neural networksCybersecurityCloud computingBanking as a service platformO

108、pen banking or APIsRobotic process automationReal-time paymentsQuantum computingBlockchainVoice technologiesVirtual or augmented reality157620-50-96-800-11Percentagepoint change Average investment allocation(%)Europe01020301429613395726261499915639124332 221121.N=69,where N is total number of Europe

109、an banks that participated in the survey.2.Volume 2(January to March 2024),Volume 3(April to June 2024).Notes:Infosys Bank Tech Index:Volume 3 August 2024|43External Document 2024 Infosys Limited Knowledge InstituteAI spending growth lags peers Spending on AI by European banks is likely to increase

110、to 5.6%,the most among technologies.However,the growth is less than the global average of 6.2%.Cybersecurity marginally tops global average European banks spending on cybersecurity at 2.8%is slightly higher than the spending by peers at 2.6%on the technology.RPA spend growth higher than peer group B

111、anks spending on RPA at 1.9%is higher than the 1.5%likely growth in spending on the technology.Technology spending growth for EuropeIntended average technology spending growth(%)0123456Voice technologies Virtual or augmented reality Blockchain Quantum computing Real-time payments Banking as a servic

112、e platform Open banking or APIs Cybersecurity Cloud computing Robotic process automationLarge language models Deep learning or neural networks Machine learning Artifcial intelligence5.63.91.00.61.92.81.00.20.50.10.00.10.00.0Europe1.N=69,where N is total number of European banks that participated in

113、the survey.Note:44|Infosys Bank Tech Index:Volume 3 August 2024External Document 2024 Infosys Limited Knowledge InstituteAppendix C:Technology budget distribution for Latin AmericaLatin American banks focus on AI and cybersecurity Banks allocated 32%of budgets to AI,followed by cybersecurity with 29

114、%in their most recent reported quarter.Increasing focus on RPA Latin American banks are looking to increase spending on RPA more than the average banks in our survey.Banking as a service and open banking see a dip in allocation Latin American banks allocation to cloud computing and open banking redu

115、ced by 3 percentage points each.TechnologyArtifcial intelligenceMachine learningLarge language modelsDeep learning or neural networksCybersecurityCloud computingBanking as a service platformOpen banking or APIsRobotic process automationReal-time paymentsQuantum computingBlockchainVoice technologiesV

116、irtual or augmented reality541-10-30-34-1-2-1-10Percentagepoint change Volume 3Volume 2Latin America051015202530Average investment allocation(%)27329138910929291296663711435332211 11.N=49,where N is total number of Latin American banks that participated in the survey2.Volume 2(January to March 2024)

117、,Volume 3(April to June 2024).Notes:Infosys Bank Tech Index:Volume 3 August 2024|45External Document 2024 Infosys Limited Knowledge InstituteBanks set to boost spending on AI The spending on AI by Latin American banks is likely to increase to 6.3%,which is higher than the overall average of 6.2%.Thi

118、s growth will be led by a 4.6%growth in machine learning spending,higher than the peer average of 4.1%.However,the growth of allocation to LLM at 0.8%,lags that of global peers at1.4%.Cybersecurity spending growth lags peers Latin American banks spending on cybersecurity at 2.4%is lower than the 2.6

119、%spending by peers on the technology.Technology spending growth for Latin AmericaLatin AmericaIntended average technology spending growth(%)Blockchain Voice technologies Virtual or augmented reality Quantum computing Real-time payments Open banking or APIs Banking as a service platform Cloud computi

120、ng Robotic process automationCybersecurity Large language models Deep learning or neural networks Machine learning Artifcial intelligence012345676.34.60.80.92.41.90.70.50.10.10.10.00.00.01.N=49,where N is total number of Latin American banks that participated in the survey.Note:46|Infosys Bank Tech

121、Index:Volume 3 August 2024External Document 2024 Infosys Limited Knowledge InstituteAppendix C:Technology budget distribution for the Middle East and AfricaMiddle East and African banks focused on AI and cybersecurity Banks allocated 29%of budgets to AI,followed by cybersecurity with 25%in their mos

122、t recent reported quarter.Increasing focus on RPA Middle East and African banks are looking to increase spending on RPA more than average banks in our survey.Cloud and real-time payments saw a dip in allocation Allocation to cloud computing and real time payments reduced by three and two percentage

123、points respectively.Volume 3Volume 2Middle East and AfricaAverage investment allocation(%)010203028291113810962425141166657115344422212TechnologyArtifcial intelligenceMachine learningLarge language modelsDeep learning or neural networksCybersecurityCloud computingBanking as a service platformOpen ba

124、nking or APIsRobotic process automationReal-time paymentsQuantum computingBlockchainVoice technologiesVirtual or augmented reality122-31-30-14-20-201Percentagepoint change 1.N=55,where N is total number of Middle Eastern and African banks that participated in the survey.2.Volume 2(January to March 2

125、024),Volume 3(April to June 2024).Notes:Infosys Bank Tech Index:Volume 3 August 2024|47External Document 2024 Infosys Limited Knowledge InstituteSpending on AI likely to increase although lags peers The spending on AI by Middle East and African banks is likely to increase to 5.9%which is slower than

126、 the overall average of 6.2%.Cybersecurity spending growth ahead of peers The likely growth in spending on cybersecurity at 2.8%by Middle East and African banks is higher than the 2.6%expected increase in spending by peers on the technology.Technology spending growth for the Middle East and Africa01

127、23456Real-time payments Voice technologies Virtual or augmented reality Open banking or APIs Blockchain Quantum computing Banking as a service platform Cloud computing Robotic process automationCybersecurity Large language models Deep learning or neural networks Machine learning Artifcial intelligen

128、ce5.94.01.40.52.81.80.80.30.10.10.10.10.10.0Middle East and AfricaIntended average technology spending growth(%)1.N=55,where N is total number of the Middle Eastern and African banks that participated in the survey.Note:48|Infosys Bank Tech Index:Volume 3 August 2024External Document 2024 Infosys Li

129、mited Knowledge InstituteAppendix C:Technology budget distribution for North AmericaNorth American banks boost allocation on AI Banks allocated 31%of budgets to AI,more than doubling since Volume 2 of our index.Cybersecurity continues to stay in focus Budget allocation for cybersecurity increased to

130、 28%,up from 23%.Open banking,banking as a service,and real-time payments saw a sharp fall in allocation North American banks allocation to open banking fell significantly by 14 percentage point,followed by a fall in banking as a service and real time payments by 6 percentage points eachVolume 3Volu

131、me 2North AmericaAverage investment allocation(%)TechnologyArtifcial intelligenceMachine learningLarge language modelsDeep learning or neural networksCybersecurityCloud computingBanking as a service platformOpen banking or APIsRobotic process automation(RPA)Real-time paymentsQuantum computingBlockch

132、ainVoice technologiesVirtual or augmented reality051015202530123151241148232816131261843610423221 101197745-3-6-143-61001Percentagepoint change 1.N=109,where N is total number of North American banks that participated in the survey.2.Volume 2(January to March 2024),Volume 3(April to June 2024).Notes

133、:Infosys Bank Tech Index:Volume 3 August 2024|49External Document 2024 Infosys Limited Knowledge InstituteSpending on AI likely to grow but lags global peers North American banks expect to increase AI spending by 6%.Cybersecurity and cloud spending growth slightly higher than peer average North Amer

134、ican banks spending growth on cybersecurity at 2.7%and cloud at 1%is slightly higher than the 2.6%and 0.9%spending by peers on cybersecurity and cloud,respectively.Technology spending growth for North AmericaNorth America0123456Virtual or augmented reality Blockchain Open banking or APIs Voice techn

135、ologies Real-time payments Quantum computing Banking as a service platform Cloud computing Robotic process automationCybersecurity Large language models Deep learning or neural networks Machine learning Artifcial intelligence6.03.80.71.52.71.11.00.40.20.20.10.00.00.0Intended average technology spend

136、ing growth(%)1.N=109,where N is total number of North American banks that participated in the survey.Note:50|Infosys Bank Tech Index:Volume 3 August 2024External Document 2024 Infosys Limited Knowledge InstituteAppendix D:High performers spend the most on technologyLower performers among banks with

137、total assets more than$250 billion buck the trend The mean tech spending by lower performers with more than$250 billion Total technology spending by performancein assets is closer to those of average performing banks in the same asset category.Lower performing banks with assets less than$250 billion

138、 spend less than average performing banks.Notes:1.Performance is defned as asset turnover ratio,calculated as revenue divided by total net assets(total assets less nonperforming assets).2.N=396,where N is the total number of banks surveyed in this research.Average estimated technology spending in mi

139、llions(US$)Performance category2.38.453.0Lower performerAverage performer6.230.455.7Higher performer24.892.2126.3$10 bn to$50 bn$50 bn to$250 bnMore than$250 bnInfosys Bank Tech Index:Volume 3 August 2024|51External Document 2024 Infosys Limited Knowledge InstituteAppendix E:Technology project succe

140、ss by region1.N=396,where N is the number of banks surveyed in Volume 3.2.N=324,where N is the number of banks surveyed in Volume 2.3.Volume 2(conducted January 2024),Volume 3(conducted April 2024).Notes:Volume 3Volume 2Proportion ofprojects on trackRegion0%10%20%30%40%50%60%70%80%Banks(%)50%to 75%A

141、PACEuropeLatin AmericaMiddle East and AfricaNorth America25%to 50%OverallAPACEuropeLatin AmericaMiddle East and AfricaNorth America0%to 25%OverallAPACEuropeLatin AmericaMiddle East and AfricaOverallNorth America12124535000467596252616179676960706432363821313037433629403252|Infosys Bank Tech Index:Vo

142、lume 3 August 2024External Document 2024 Infosys Limited Knowledge InstituteAppendix E:Technology project success by sizeVolume 3Volume 21.N=396,where N is the number of banks surveyed in Volume 3.2.N=324,where N is the number of banks surveyed in Volume 2.3.Volume 2(conducted January 2024),Volume 3

143、(conducted April 2024).Notes:Total assetcategory0%10%20%30%40%50%60%70%80%Banks(%)Overall$10 bn to$50 bn$50 bn to$250 bnMore than$250 bnOverall$10 bn to$50 bn$50 bn to$250 bnMore than$250 bnOverall$10 bn to$50 bn$50 bn to$250 bnMore than$250 bnProportion ofprojects on track50%to 75%25%to 50%0%to 25%

144、3732596741242470756143524857012934616835Infosys Bank Tech Index:Volume 3 August 2024|53External Document 2024 Infosys Limited Knowledge InstituteAuthorsAnalysis and productionSamad Masood|Infosys Knowledge Institute,London Sharan Bathija|Infosys Knowledge Institute,BengaluruDylan Cosper|Infosys Know

145、ledge Institute,DallasIsaac LaBauve|Infosys Knowledge Institute,DallasPramath Kant|Infosys Knowledge Institute,BengaluruEditorsKate Bevan|Infosys Knowledge Institute,LondonPragya Rai|Infosys Knowledge Institute,Bengaluru54|Infosys Bank Tech Index:Volume 3 August 2024External Document 2024 Infosys Li

146、mited Knowledge InstituteAbout Infosys Knowledge InstituteThe Infosys Knowledge Institute helps industry leaders develop a deeper understanding of business and technology trends through compelling thought leadership.Our researchers and subject matter experts provide a fact base that aids decision ma

147、king on critical business and technology issues.To view our research,visit Infosys Knowledge Institute at or email us at .2024 Infosys Limited,Bengaluru,India.All Rights Reserved.Infosys believes the information in this document is accurate as of its publication date;such information is subject to change without notice.Infosys acknowledges the proprietary rights of other companies to the trademarks,product names