Big data analysis has become the most popular banking technology.
The Institute for Statistical Studies and Economics of Knowledge (ISSEK) of the Higher School of Economics has published an overview “From digital opportunities to digital realities”. Experts analyze the degree of digitization of the main sectors of the economy in 2020. As a result, the Russian financial sector has the highest indicators.
- The most popular technology among banks and financial companies has become the technology for collecting, processing and analyzing big data – they are used by 44.4% of all companies in the sector. In second place are cloud services (41%), in third place are digital platforms (36.3%). AI solutions are used by almost 23% of all companies in the financial sector. The smallest technology is the Internet of Things, only 10.8% of financial organizations are implementing it in 2020.
Use of digital technology in financial institutions by 2020 (as a percentage of the total number of organizations).
Source: HSE calculations based on Rosstat data.
“The financial sector is a leader and, in a sense, a conductor of economic digitization. Financial institutions are often the innovators in implementing advanced digital solutions and the latest technology. Many companies in this industry are not only using individual digital products and services, but are also implementing complex digital transformations, leading to a deep restructuring of business processes and the creation of completely new business models,” the report said.
- Banks and other financial companies spend more on digital technology than any other sector – 491.3 billion rubles a year, analysts say. It accounts for 19.9% of all economic costs for the introduction and use of digital technology.
- The experts also identified 4 global trends in the development of digital technology: financial decentralization, invisible banking, robo-advising, and the spread of m2m (machine-to-machine) payments. According to them, by 2026, the global market for blockchain technology in the financial sector will reach $22.5 billion, and the global mobile banking market will cost $1.8 billion.
- It is noteworthy that the trading company occupies only fourth place in the ranking of costs of digitization with 154.3 billion rubles. However, e-commerce is “consolidating its status as a driver of economic development,” the report said.
- The development of e-commerce in Russia will be facilitated by the use of big data analytics technologies, the use of artificial intelligence-based voice assistants and chatbots, the provision of virtual fitting rooms using virtual and augmented reality technologies, analysts said. According to them, AR technology will soon “become one of the main technologies for e-commerce.”
As a reminder, last September, a similar study was conducted by the FinTech Association. According to the organization’s survey, mobile applications are becoming the most popular technology among financial market participants – 75% of organizations have implemented them.
See also: Alfa-Bank has launched a voice assistant.