06 October 2015

North American bank IT spending to hit nearly $60 billion in 2014

24 January 2014  |  7023 views  |  0 New York Skyline 1

Tech spending by North American banks is expected to hit nearly $60 billion in 2014, marking a return to confidence in the sector after years of underinvestment.

The latest data from Celent shows North American IT spending growth rising at a solid clip, from $56.9 billion in 2013 to $59.5 billion in 2014, representing a 4.5% increase.

Looking further ahead, the analyst house suggests that growth will be consistent and climb slightly in 2015, as tech outlay in the sector reaches US$62.2 billion, an increase of 4.6%.

Celent describes the figures as "encouraging", with 2014 building on the IT budget uplift experienced in 2013.

Celent forecasts strong growth in retail banking spending - key priorities include the monetisation of digital channels, enhancements to the user experience, and omnichannel sales and service endeavors. Spending on wholesale banking will also continue to climb, says the firm, particularly as midsize banks look at upgrading aging cash and treasury management solutions.

"The good news is that new investment spending is skyrocketing and that maintenance allocations are on the decline," says Jacob Jegher, research director with Celent's Banking Group and author of the report. "It's still quite challenging to get projects funded, however. Projects are encouraged but highly scrutinised, and they come with the requirement of a fast return on investment."

The figures from Celent are at odds with an earlier report from Technology Business Research published in August last year. The latter forecast a 2014 tech spend of $73.8 billion by "large North American financial institutions". The numbers, based on surveys and interviews with IT and business execs at 201 finance firms, were billed as a mere two per cent rise on 2013.

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

07 November, 2013
21 October, 2013
08 August, 2013
02 August, 2013
12 March, 2013
04 February, 2013
30 January, 2013
25 January, 2013

Top topics

Most viewed Most shared
Banks face choice to collaborate or compet...
8272 views comments | 43 tweets | 49 linkedin
BNP Paribas to pilot cards with dynamic CV...
6517 views comments | 31 tweets | 36 linkedin
Worldpay trials facial recognition technol...
6418 views comments | 23 tweets | 39 linkedin
Payments firm Adyen scores funding at $2.3...
4988 views comments | 16 tweets | 14 linkedin
Switzerland gets new fintech accelerator
4299 views comments | 15 tweets | 3 linkedin

Featured job

to $120K base, double OTE, benefits
New York City, NY or Boston, MA (USA)

Find your next job