Banks To Spend $100bn On IT Equipment This Year
The staggering amount spent by banks on IT equipment is revealed in a report from analysts Ovum.
Retail banks will spend $118bn on IT equipment this year, reports Ovum – 3.4% up on 2012.
The spending shows greater optimism in the banking community, says Ovum, and will be used to support mobile banking growth of 4% in Europe in 2013, rising at a CAGR of 6% between 2013 and 2017.
Compliance issues are the big driver of banks’ IT investment with credit risk management and data privacy the leading foci of IT spending.
“The optimistic signs on the economic horizon are driving the shift away from cost-cutting and towards investment strategies within the retail banking sector,” says Ovum’s Jaroslaw Knapik, “whilst regulatory compliance has certainly fuelled a significant amount of the investment predicted in our forecasts, it is by no means the sole driver. The level of investment in digital channels gives a clear indication that banks are fully cognizant of the growing expectations of their customers, as well as the opportunities they present.”
Global investment into Management Information Systems is predicted to reach $6.4bn over the course of the year, and $2.2bn of spending in Europe alone over this year and accounts for 5.5% of overall IT spending by European banks.