Several global banks have started increasing their spending on technology projects, Reuters news report said. The report also provided a list of technology providers and their BFSI customers.
For instance, JPMorgan said it was boosting its annual technology spending by $1.5 billion to $17 billion in 2024.
Bank of America has earmarked $4 billion this year for new technology initiatives such as developing generative artificial intelligence features.
Reuters news report said the increase in technology spending by banks will be raising hopes for the $254 billion Indian IT sector. IT service providers in India makes about a third of their revenue from banking, financial services and insurance (BFSI) clients.
Quarterly reports from Tata Consultancy Services (TCS), Infosys, Wipro and others showed a nascent recovery in BFSI client demand after six quarters of depressed spending.
Top five U.S. banks spent 6.8 percent more on tech investments year-on-year and 1.2 percent sequentially, their results for the quarter ended June showed, according to Reuters’ analysis.
“While this (BFSI improvement) is certainly a glimmer of hope, it is too early to declare a full recovery,” brokerage Motilal Oswal Financial Services said in a note last week.
TCS is working with BFSI clients such as USAA, Metlife, AIG, PwC, Vanguard, American Express, Bank of America, Morgan Stanley, PNC Financial Services, Citi, among others.
Infosys is working with BFSI clients such as American Express, Bank of America, Citi, CapitaGroup, WellsFargo, DTTCC, CitizensBank, AllState Insurance, BB&T, Charles Schwab, UBS, among others.
Tech Mahindra is working with BFSI clients such as Morgan Stanley, Citi, Bank of the West, and Thomson Reuters, among others.
Wipro is working with BFSI clients such as PNC Financial Services, Citi, Charles Schwab, UBS, S&P Global, State Street, Visa, US Bancorp, among others.
