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Analysis
Data evolution in banking
2024 Banking & Capital Markets Survey
We asked around 150 senior US banking personnel about their priorities and challenges when it comes to data. The results are illuminating. Explore highlights from the Banking & Capital Markets Data and Analytics Market Survey, and learn which trends to watch to prepare for tomorrow.
Data and analytics is a pressing concern for US banking
Data has become all-important, and US banking is not immune. In 2023 alone, US banks planned to spend north of $5 billion on data initiatives. With generative AI at the doorstep, the urgency around data is greater than ever, along with a palpable concern that a bank could miss out and get left behind unless its data is in order. So far, banks have begun to dabble with generative AI for efficiency gains in small, internal-facing initiatives such as coding, data governance, and automation, as well as in external-facing projects for better targeting and hyper-personalization.
Below, we share some of the top takeaways from the Banking & Capital Markets Data and Analytics Market Survey. Insights include top priorities, challenges, and success factors, as well as trends in cloud transformation and generative AI.
Below, we share the top five trends from the Banking & Capital Markets Data and Analytics Market Survey:
Looking to the future
What’s in store for the near future of data analytics in banking and capital markets? Here are some trends to watch.
For consumers of data across the organization, accuracy and reliability of data are paramount: 94% of responders named it as a priority. Ease of access and use also ranked high, with 86% of respondents naming it as a top concern.
*Respondents were asked to rank the top 4 challenges out of a list of 10
The potential of AI for operational efficiency, innovation, and personalization is one of the biggest drivers behind data initiatives. Almost a third of respondents said their organizations are considering an investment in AI for personalization, 45% for no-code AI, and 62% for creative or Gen AI.
Banking and capital markets organizations are well on their way to move to the cloud, with 52% saying they have migrated more than half of their data. Relative to other industries, however, a large part of the journey still lies ahead.
After a hesitant start, banks are becoming increasingly comfortable with multi-cloud design, especially when it comes to their core data infrastructure. Respondents were asked to rank their top four reasons for adopting a multi-cloud approach. Goals include avoiding vendor lock-in (40%), optimizing cost (36%), and improving performance and latency (36%).
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