North American IT spending growth 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 a report, Celent examines, analyses, and contrasts the IT spending patterns of US and Canadian
banks. North American bank IT spending will grow from $59.5 billion in 2014 to $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.