Infosys Bank Tech Index – Volume 5: Innovation and growth are the top strategic priorities for 94 percent of banks
Infosys released volume 5 of its Bank Tech Index, which analyzes data from 400 of the largest banks by assets in Asia Pacific, Europe, Latin America, North America, the Middle East and Africa and the UK. Developed by the Infosys Knowledge Institute, the research and thought leadership arm of Infosys, the report gathers insights on technology spending, staffing, and AI implementation from a panel of leading global banks.
Infosys found that banks are shifting their top strategic priorities from cost reduction to innovation and growth, with banks actively investing in technology and digital transformation that drive sustainable growth, improve efficiency and ultimately enhance customer and employee experiences. Growth in AI spending during January to June 2025 is expected to see the largest increase (3.4 percent) and outpace global inflation as banks see AI generating the most value in fraud detection and customer service. However, nearly half of AI initiatives (49 percent) are still in the proof-of-concept and pilot phase. As banks continue their AI journeys, it is essential they solve their data and regulatory challenges.
Key findings include:
- Innovation and business growth become top priorities – The strategic importance of developing new innovations and driving business growth increased by 11 percentage points and 5 percentage points, respectively since the release of volume 4 of the Infosys Bank Tech Index in November of 2024. However, banks decreased the importance of cost reduction by 9 points. And 94 percent of banks expect a shift from regulatory to innovation-led growth investments in 2025.
- AI spending and hiring leaps ahead – AI spending by banks is forecasted to increase by 3.4 percent. The growth of AI is seen in hiring as well, as banks expect to increase their AI workforce by 14 percent by June of 2025.
- AI is generating the most value in fraud detection and customer service – Banks report that 25 percent of their initiatives create some or most business value. Fraud detection was rated as the most useful area (28 percent), followed by customer service (22 percent). The top barriers to banking’s AI adoption are data privacy, regulatory concerns, and data maturity.
- Cloud strategies are shuffling – While 27 percent of the banking industry’s cloud today is public, only 20 percent is expected to be public in the next three years. During this same period, private cloud is expected to increase from 22 percent to 33 percent. However, banks do not indicate that they are decreasing their reliance on cloud.
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 400 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 evolving technology landscape, including technology spending, AI adoption, and talent recruitment trends.
