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Bank IT Spending: What Does 2010 Look Like?

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Celent have reviewed this profile and believe it to be accurate.
14 January 2010
Neil Katkov
Celent has been receiving a truckload of IT spending questions. This is no surprise, and we usually receive these inquiries at this time of year. Things are a little bit different though this year as after a rough 2009, folks are curious as to if the figures are on the uptick in 2010. I wrote up an article for Bank Systems & Technology in late December that provided a preview. The good news is that our annual IT Spending report series has been released and all the juicy details can be found inside. The short answer is yes, bank IT spending is on the uptick. North America is a perfect example. Although there was a decline in North American IT spending growth (from 3.1% in 2008 to a mere 1.7% in 2009), it is now on the uptick. IT spending growth is expected to be 2.2% in 2010. North American bank IT spending will grow from US$50.3 billion in 2009 to US$51.4 billion in 2010. It will continue to grow over the next few years to reach US$55.2 billion in 2012. Although 2010 has the potential to be the start of a turnaround, let's not forget that there is still plenty of uncertainty in the industry and we are not completely out of the woods. I encourage you to read the following new reports and I welcome your questions and comments.

Comments

  • Agree with you Jacob that although 2010 has the potential to be the start of a turnaround, there is still plenty of uncertainty and we are not completely out of the woods. In fact this has been validated in a recently concluded survey we conducted with CFOs, who said that cost cutting continues to be THE most important agenda item for them in 2010.

    Thanks,

    Anurag Mehrotra

  • Anurag is probably right that there is an emphasis on cost cutting, and I would have to agree. Point Enterprises' software deals with optimizing staffing levels in branches, and there has been a complete turnaround in the level of interest in the Q4 2009 and continuing into 2010. During the first part of 2009 banks may have needed to increase efficiency, but they were very reticent to start any new initiatives. Now there is a high receptivity to initiatives that result in cost savings, particularly if the payback period is short.

    David Basri

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