Global information technology spending by financial services institutions is expected to reach US$363.8 billion in 2011, an increase of 3.7% over 2010, according to estimates by research house Celent.
This figure is substantially higher than the lacklustre 2.5% growth increase experienced in 2010, although still some way off a more optimistic 4.5% assessment projected by Ovum in November.
Growth rates are starting to climb across most regions, says Celent in concurrence with Ovum, with spending on IT products and services set to rise to US$393 billion by 2013, a 3.9% compound annual growth rate (CAGR) from 2011 to 2013.
Firms in North America and Europe account for 34.2% and 33.6%, respectively, of the global IT investments by financial services institutions, says Celent. Firms in Asia-Pacific account for 26.4%, and Latin America and Africa account for the remaining 5.8%.
Among all regions, the fastest growth will be seen in financial services institutions in Asia-Pacific, with IT spending increasing at 6.2% in 2011 and a CAGR of 6.2% from 2011 to 2013. Growth will continue to rise in this region, and total spending in Asia-Pacific is expected to reach US$108.2 billion in 2013. North America will experience climbing growth rates through 2012 while Europe will struggle. Latin America and Africa are expected to grow at a relatively modest rate (3.7%). Spending in this region will grow to US$21.2 billion in 2011.
"We are not completely out of the woods, but the good news is that the turnaround has begun," says Jacob Jegher, senior analyst with Celent's Banking Group and co-author of the report. "European institutions are still being hit particularly hard, and many of these challenges will continue in 2011. The good news is that overall growth projections are indicating a positive trend."