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View Full Version : Bank tech spending to hit $132B in 2015, analysts say



OMEN
01-12-2011, 09:35 PM
Mobile banking technology spending leads industry boom; North American spending expected to reach $50 billion
Computerworld - North America will be leading the globe in buying new bank technology over the next five years, with spending expected to reach $50 billion in 2015 after growing about 23% annually, according to consulting firm Ovum.

Ovum expects that worldwide spending on banking technology will reach $132 billion by 2015 -- a 24% average annual increase.

Ovum's "Retail Banking Technology Spending Model Through 2015" report shows worldwide spending on technology that allows users to access banking services via the Internet will reach $9.7 billion, up an average of 33% a year.

"There is a strong focus on online platforms and their extension onto mobile devices and tablets, given their ability to service clients at a lower cost. In addition, technologies that allow 'smarter' selling and servicing, such as customer analytics and channel integration are expected to remain hot spot areas in the near future," said Ovum analyst Jaroslaw Knapik in a statement.

Regulatory requirements will also drive investment in technologies that promise to reduce costs, such as data management, business intelligence and analytics tools, according to Knapik. Middleware technologies, including risk management, anti-fraud, compliance or performance management software, are expected to grow 30% to $7.2 billion in 2015, according to Ovum.

Europe, lead by Western Europe, is following close behind North America in terms of overall spending on bank technology will reach $43 billion by 2015, but that figure represents the lowest annual growth percentage -- 19%.

Emerging economies in Asia and the Pacific are expected to lead the world in percentage of average annual growth with 49% to $12.7 billion in 2015.

South and Central America are expected to see a 29% jump in spending over the next five years to $3.9 billion. The Middle East and Africa are expected to both grow at 30% a year to $2.2 billion, each.

Newly industrialized and developed economies in Asia and the Pacific should see average growth of 23% to $15.5 billion.