19 August 2017
visit www.avoka.com

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

24 January 2014  |  8093 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)

Finextra news in your inbox

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

Related stories

Fintech for the underbanked attracts $5.2 billion investment spend in US

Fintech for the underbanked attracts $5.2 billion investment spend in US

07 November 2013  |  8347 views  |  0 comments | 21 tweets | 4 linkedin
Indian bank IT spending to hit new highs - Gartner

Indian bank IT spending to hit new highs - Gartner

21 October 2013  |  4394 views  |  0 comments | 4 tweets | 2 linkedin
Global core banking market to hit $10bn in 2017 - Celent

Global core banking market to hit $10bn in 2017 - Celent

08 August 2013  |  7554 views  |  0 comments | 7 tweets | 8 linkedin
North American banks to spend $73.8bn next year - survey

North American banks to spend $73.8bn next year - survey

02 August 2013  |  5674 views  |  0 comments | 14 tweets | 9 linkedin
European bank ICT spending to hold steady

European bank ICT spending to hold steady

12 March 2013  |  4219 views  |  0 comments | 5 tweets | 1 linkedin
Retail banking IT spend to hit $118.6bn in 2013 according to Ovum

Retail banking IT spend to hit $118.6bn in 2013 according to Ovum

04 February 2013  |  7324 views  |  1 comments | 8 tweets | 5 linkedin
Indian financial services IT spending to grow 12% in 2012 - Gartner

Indian financial services IT spending to grow 12% in 2012 - Gartner

30 January 2013  |  4530 views  |  0 comments | 5 tweets
Global bank IT spending to rise; Asia leads the charge, but Europe flatlines

Global bank IT spending to rise; Asia leads the charge, but Europe flatlines

25 January 2013  |  7600 views  |  0 comments | 9 tweets | 4 linkedin

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.worldpaymentsreport.comdownload the paper now

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
8613 views comments | 23 tweets | 23 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
7658 views comments | 19 tweets | 23 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
6873 views comments | 10 tweets | 7 linkedin
hands typing furiouslyWhy Blockchain Might Not Be The Future For...
6333 views 1 | 5 tweets | 3 linkedin
Apple sidelined as Beijing transit system launches payments appApple sidelined as Beijing transit system...
6176 views comments | 11 tweets | 9 linkedin

Featured job

Competitive
London, UK (or flexible)

Find your next job