04 December 2016
visit http://www.wolterskluwerfs.com

Global retail bank IT spend to soar - Ovum

08 August 2014  |  9072 views  |  1 Digital Arrow chart

Global retail bank IT spending is to set to rise 19.9% over the next four years to hit $150 billion in 2018, according to figures from Ovum.

The analyst house says investment will be concentrated on expanding core platforms and growth-supporting infrastructure, particularly in mature markets. A renewed focus on both digital banking channels and branch transformation will also drive IT spending, with channel investments a priority in countries with less developed banking sectors.

The firm says retail bank IT budgets are expected to grow at a 4.3% CAGR between 2014 and 2018, as banks emerge from a post-crisis malaise which spawned massive budget cuts and retrenchment in tech investment.

Banks headquartered in North America will continue to make the largest investments, says Ovum, spending $58.5 billion in 2018, compared to $47.3 billion in Europe and $32.3 billion in Asia. The Middle East and Africa will will see the most rapid growth, at a CAGR of 6.2% to 2018.

"The top priority for CIOs is delivering customer-centric banking services, allowing them access to accounts at any time, in any place, and on any device," says Kieran Hines, practice leader, financial services technology, Ovum. "This is driving investment in both the channels and core systems that support this. In addition, a more stringent regulatory environment place new reporting and risk oversight demands on banks. This is also an increasingly important factor in the investments made in core banking systems".

Comments: (1)

Gerard Hergenroeder
Gerard Hergenroeder - IBM - New York | 11 August, 2014, 14:08

This investment is really needed to help the banks rebuild their consumer value proposition and continued relevance in the market. I can not wait to be "wowed" by the banks.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
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

Royal Bank of Scotland to spend £1 billion on retail transformation

Royal Bank of Scotland to spend £1 billion on retail transformation

27 June 2014  |  14018 views  |  2 comments | 29 tweets | 30 linkedin
JPMorgan to upgrade Bournemouth operations centre

JPMorgan to upgrade Bournemouth operations centre

01 May 2014  |  4013 views  |  0 comments | 2 tweets | 1 linkedin
IT proves top spending priority for UK FS industry

IT proves top spending priority for UK FS industry

31 March 2014  |  6144 views  |  0 comments | 15 tweets | 9 linkedin
Retail bank IT spending to hit $152.2 billion by 2018 - Ovum

Retail bank IT spending to hit $152.2 billion by 2018 - Ovum

28 March 2014  |  7928 views  |  0 comments | 9 tweets | 17 linkedin
Financial markets IT spending to hit $100bn as credit crunch nears end

Financial markets IT spending to hit $100bn as credit crunch nears end

19 March 2014  |  6425 views  |  0 comments | 13 tweets | 7 linkedin
Global bank IT spending on the rise as European market recovers

Global bank IT spending on the rise as European market recovers

11 February 2014  |  6646 views  |  0 comments | 15 tweets | 11 linkedin
North American bank IT spending to hit nearly $60 billion in 2014

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

24 January 2014  |  7799 views  |  0 comments | 17 tweets | 14 linkedin
Risk IT spending continues upwards trend - Chartis

Risk IT spending continues upwards trend - Chartis

08 November 2013  |  6561 views  |  0 comments | 6 tweets | 7 linkedin
Indian bank IT spending to hit new highs - Gartner

Indian bank IT spending to hit new highs - Gartner

21 October 2013  |  4110 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  |  7030 views  |  0 comments | 7 tweets | 8 linkedin

Related blogs

Create a blog about this story (membership required)
Visit capgemini.comVisit contisgroup.comhttp://www.financialcrimerisk.fiserv.com/aml?r=finextra

Top topics

Most viewed Most shared
Royal Mint to issue digital goldRoyal Mint to issue digital gold
6599 views comments | 23 tweets | 21 linkedin
Bank CEOs fret about ROI as startups drive IT arms raceBank CEOs fret about ROI as startups drive...
5714 views comments | 16 tweets | 21 linkedin
UK challenger bank Masthaven opens for businessUK challenger bank Masthaven opens for bus...
5709 views comments | 15 tweets | 13 linkedin
ING pulls plug on P2P payments app TwypING pulls plug on P2P payments app Twyp
5607 views comments | 16 tweets | 15 linkedin
R3 and Calypso to develop blockchain trade confirmation systemR3 and Calypso to develop blockchain trade...
5592 views comments | 13 tweets | 12 linkedin

Featured job

to Six-Figure Base, Bonus, Benefits
London, UK

Find your next job