Global retail bank IT spend to soar - Ovum
08 August 2014 | 9343 views | 1
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".