IT Spending in Banking: A North American Perspective

by Jacob Jegher, January 24, 2014
Industry Trends
North America


North American IT spending growth is rising at a solid clip and is expected to be 4.5% higher in 2014. Growth will be consistent and climb slightly in 2015, as IT spending by North American banks reaches US$62.2 billion, an increase of 4.6%. These figures are encouraging, with 2014 building on the IT growth experienced in 2013.

In the 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 banks’ IT spending will grow from US$56.9 billion in 2013 to US$59.5 billion in 2014. There is strong growth in retail banking spending – key priorities include the monetization of digital channels, enhancements to the user experience, and omnichannel sales and service endeavors. Spending on wholesale banking will also continue to climb, 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 scrutinized, and they come with the requirement of a fast return on investment.”

This report examines the regional breakdowns of retail versus wholesale spending, internal versus external spending, and maintenance spending versus new investments. The report also points to several key North American banking technology trends and growth areas for 2014.

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

Executive Summary




Definition of IT Spending





Retail Banking Dominates



Internal Vs. External Spending



Byzantine Legacy Systems Pervade Banking



Top Tech Trends in Banking: 2014 and Beyond




Leveraging Celent’s Expertise



Support for Financial Institutions



Support for Vendors


Related Celent Research


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