IT Spending in Banking: A Global Perspective

by Gareth Lodge,  Hua Zhang,  Jacob Jegher, February 5, 2015
Industry Trends
Global

Abstract

Total bank IT spending across North America, Europe, and Asia-Pacific will grow to US$196.7 billion in 2015, an increase of approximately 4.6% over 2014. This upward shift is an encouraging indicator.

In the report IT Spending in Banking: A Global Perspective, Celent analyzes IT spending trends across North America, Europe, and Asia-Pacific. The report compares and contrasts the direction of IT spending trends. The majority of the growth is coming from Asia-Pacific banks: spending by banks in this region will grow 5.6% in 2015 to US$70.3 billion. This growth will remain relatively consistent in 2017, though it will decline slightly.

US and Canadian banks are also reporting encouraging results. North American bank spending will grow by a solid 4.5% in 2015 to US$62.2 billion. In 2016 it will increase by 4.2% to US$64.8 billion. European banks aren’t faring quite as well, yet banks find themselves committed overall to increasing their spending. Spending by European banks will grow 3.7% in 2015 to US$64.3 billion. European spending growth will continue to ramp up through 2017 as spending increases by 4.4% to US$70.1 billion.

“IT spending momentum is positive and consistent, and will continue for the next few years,” says Jacob Jegher, a research director with Celent's Banking practice and coauthor of the report. “Banks across the globe are positioning themselves to leverage the benefits of technology and focus on innovation. When we examine the sum of IT spending across the three regions, we expect IT spending to grow by 4.7% in 2016 and 4.6% in 2017.”

This report is divided by region (North America, Europe, and Asia-Pacific). Each section analyzes the budget allocations according to type of customer and of investment (internal versus external, maintenance versus new). An overview of the top technology trends in each region is also provided.

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 a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

5

Definition of IT Spending

6

North America

8

 

Internal Vs. External Spending

10

 

Top Trends

13

Europe

14

 

Top Trends

20

Asia-Pacific

22

 

Top Trends

26

Conclusion

28

Leveraging Celent’s Expertise

29

 

Support for Financial Institutions

29

 

Support for Vendors

29

Related Celent Research

30

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