Mumbai: The Indian banking and securities companies will spend a total of 499 billion on IT products and services in 2015, an increase of 9.8 percent over 2014 spend of 455 billion, a new forecast by market research firm Gartner said.

The research includes spending by financial institutions on internal IT (largely personnel), hardware, software, external IT services and telecommunications.

"Established firms in the industry are investing to strengthen their operational infrastructure to support regulatory needs, as well as sustain increasing demands from the digital channels. Moreover, the Reserve Bank of India has issued licenses for 11 payment banks and another 10 small finance banks," said Rajesh Kandaswamy, research director at Gartner.

"These new entrants will grow the IT market by their own technology investments, and also by stimulating the incumbents to invest in modern technology. India has also been upgrading, and increasing, the technology infrastructure that facilitates payments. Banks will take advantage of these by building technology-enabled services on top," he added.

The market research firm also said technology will play a more pervasive role in banking and securities, and in all aspects of the business.

Indian banks will increase investments in digital solutions, modernise back-end systems and increase their reliability and speed, Kandaswamy said.

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