Bank Systems & Technology is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Management Strategies

03:28 PM
Connect Directly
Facebook
Twitter
Google+
RSS
E-Mail
50%
50%

Bank IT Spend Projected to Reach $215 Billion in 2014

Financial services firms overall are estimated to spend $430 billion in 2014, according to IDC Financial Insights.

Worldwide financial services spending on IT is expected to reach more than $430 billion in 2014, with banks accounting for $215 billion of that figure, accruing to a new report from IDC Financial Insights.

“Bankers continue to be selective with IT initiatives, focusing on those that can deliver value to their clients and the organization, while also satisfying the mandate of reducing costs and improving efficiency," noted Karen Massey, Senior Analyst, Banking, IDC Financial Insights. "Expect to see projects around risk and compliance, core and infrastructure modernization, customer experience, and security, which are lifting our otherwise tempered forecasts."

The firm also predicts that Capital Markets will spend $110 billion in IT in 2014, with insurance companies accounting for $100 billion in IT spending. By region, Asia/Pacific, Latin America, Middle East and Africa will see growth of overall financial services IT spending exceeding 7% while Europe and North America remain well below 5%, according to the report.

The figures are part of IDC Financial Insights' worldwide financial services spending forecasts over a five year period. Overall, worldwide IT spend is growing, with a 4.8% compound annual growth rate (CAGR) over the forecast period, which encompasses, 2012-2017.

[See Also: Banks Spending More on Innovation]

Bryan Yurcan is associate editor for Bank Systems and Technology. He has worked in various editorial capacities for newspapers and magazines for the past 8 years. After beginning his career as a municipal and courts reporter for daily newspapers in upstate New York, Bryan has ... View Full Bio

Comment  | 
Print  | 
More Insights
Register for Bank Systems & Technology Newsletters
Slideshows
Video
Bank Systems & Technology Radio
Archived Audio Interviews
Join Bank Systems & Technology Associate Editor Bryan Yurcan, and guests Karen Massey and Jerry Silva from IDC Financial Insights, for a conversation about the firm's 11th annual FinTech rankings.