Most bank transactions to move to cloud by 2016

Over 60% of banks worldwide will process the majority of their transactions in the cloud by 2016. That’s according to a Gartner report into industry technology trends, which lays out a series of predictions across seven vertical markets.

The report argues that many industries will have no option but to radically change their business models in the face of the major challenges looming in 2014 and beyond.

Transformational technologies such as cloud, mobile and big data, coupled with the need to digitalise the business and be customer-centric, will require strategic changes to business processes.

Other major trends addressed in the report include a prediction that six in 10 government organisations with both a CIO and a chief digital officer will eliminate one of these positions by 2017.

By 2017, 40% of utilities with smart metering capabilities will used cloud-based big data analytics to address business and customer-related needs.

Companies in some sectors will need to tweak or abandon technology initiatives that have not been yielding adequate ROI. Gartner predicts that by end-2015, insurers will abandon 40% of their current customer-facing mobile apps due to poor returns and that 80% of life science companies will be crushed by elements of big data.

On the consumer side, Gartner expects that by 2017, 15% of shoppers will respond to context-aware offers based on their individual demographics and shopper profiles.

“The pressures of consumerisation continue to disrupt many enterprises, forcing them to change their traditional business processes and operational models,” Gartner VP Kimberly Harris-Ferrante said.

She urged business leaders and CIOs to carefully examine their industry-specific strategic requirements to map out transformation plans based on factors including new technologies, consumer demographic changes and market conditions.

Image courtesy of Max London under CC