Gartner: Majority of Banks Will Turn to Cloud for Processing Transactions By 2016

Gartner released its IT predictions for vertical industries yesterday, which included forecasts on the growth of cloud in banking and changes in consumer behavior.

More than 60% of banks worldwide will process most of their transactions in the cloud by 2016, Gartner predicted in a new report released yesterday. That growth in cloud adoption will be driven by a poor return on equity, Gartner said in the report, titled “Top Industries Predicts 2014: The Pressure for Fundamental Transformation Continues to Accelerate.”

The report also predicted growth in the consumer use of personalized “context-aware” offers and coupons. The report forecasted that 15% of consumers would respond to such offers based on their demographic and shopping profile by 2017.

Providing such personalized offers have been a hot topic in banking as both a use case for data and analytics and as a means for furthering the adoption of mobile payments by tracking shopping patterns and geographic location.

“Many industries will face intense challenges in 2014 and beyond, and will have no choice but to radically change their established business models,” Kimberly Harris-Ferrante, the vice president and analyst for Gartner who wrote the report, said. “Last year saw many industry decision-makers focusing on adopting new technologies to improve business operations… Today, by contrast, leaders are significantly shifting their business models and processes.”

Jonathan Camhi has been an associate editor with Bank Systems & Technology since 2012. He previously worked as a freelance journalist in New York City covering politics, health and immigration, and has a master's degree from the City University of New York's Graduate School ... View Full Bio