IT Spending in Banking: A North American Perspective

by Jacob Jegher, January 27, 2015
Industry Trends
North America

Abstract

North American IT spending is rising steadily and is expected to be 4.5% higher in 2015. Growth will drop slightly in 2016 as IT spending by North American banks reaches US$64.8 billion, an increase of 4.2%.  

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 bank IT spending will grow from US$59.5 billion in 2014 to US$62.2 billion in 2015. This year is shaping up to be another promising one for retail banking; significant funds are still required to move forward and maintain self-service initiatives, digital banking projects/overhauls, branch transformation initiatives, and omnichannel endeavors.

Mobile banking will continue to receive significant attention as banks aim to build on existing smartphone and tablet apps. Analytics, omnichannel banking, compliance/regulatory, and IT security investments will also be priorities. Spending on corporate banking will continue to climb through new component or module-based initiatives. Midsize banks are still very much looking to compete with larger banks that have invested significant amounts over the last several years. Small business is also a growing area of interest because banks still haven’t figured out how to attack this distinct and attractive market segment.

“The figures point to another strong year; 2015 is poised to build on the growth experienced last year,” says Jacob Jegher, a research director with Celent’s Banking practice and author of the report. “Investment in technology will of course continue to be a critical requirement as banks work on maintaining their existing systems and work on incremental improvements and innovations.”

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 2015.

This 22-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 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

4

Definition of IT Spending

5

Banking

7

 

Retail Banking Dominates

7

 

Internal Vs. External Spending

9

 

New Investments on the Rise

12

 

Top Tech Trends in Banking: 2015 and Beyond

14

Outlook

15

Leveraging Celent’s Expertise

16

 

Support for Financial Institutions

16

 

Support for Vendors

16

Related Celent Research

17

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