IT Spending in Banking: A North American Perspective
North American IT spending growth is rising at a solid clip and expected to be 4% higher in 2013. Growth will continue to climb in 2014 as IT spending by North American banks reaches US$59.4 billion, an increase of 4.4%. While 2012 saw a substantial reduction in IT spending growth in the US, 2013 will take us to more positive and encouraging territory.
In a new report, IT Spending in Banking: A North American Perspective, Celent examines, analyzes, and contrasts the IT spending patterns of US and Canadian banks. North American bank IT spending will grow from US$54.7 billion in 2012 to US$56.9 billion in 2013. There is encouraging growth in retail banking spending, digital channels and payments have strong spending, and new investment spending is creeping up. With that said, it’s not all smooth sailing; Wholesale banking spending will continue to climb, though growth rates will be lower than those of the last few years, and compliance, regulatory, and maintenance spending are still tying up IT budgets.
“Banks are still unable to escape the maintenance conundrum, but fortunately the allocation to new investments is on the rise,” says Jacob Jegher, Senior Analyst with Celent's Banking Group and author of the report.
“Most banks are chipping away at a laundry list of enhancements and strategic initiatives that they would like to take on. There is always something to build or improve on in banking technology, and deep pockets are required.”
This report examines the regional breakdowns of retail versus wholesale spending, internal versus external spending, and maintenance spending versus new investments. The report also outlines several key North American banking technology trends and growth areas for 2013.
This 34-page report contains 13 figures and one table.
Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].
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Table of Contents
Definition of IT Spending
Retail Banking Dominates
Internal Vs. External Spending
Byzantine Legacy Systems Pervade Banking
Top Tech Trends in Banking: 2013 and Beyond
Leveraging Celent’s Expertise
Support for Financial Institutions
Support for Vendors
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