Worldwide financial services spending on IT is expected to reach more than $430 billion in 2014, with banks accounting for $215 billion of that figure, accruing to a new report from IDC Financial Insights.
“Bankers continue to be selective with IT initiatives, focusing on those that can deliver value to their clients and the organization, while also satisfying the mandate of reducing costs and improving efficiency," noted Karen Massey, Senior Analyst, Banking, IDC Financial Insights. "Expect to see projects around risk and compliance, core and infrastructure modernization, customer experience, and security, which are lifting our otherwise tempered forecasts."
The firm also predicts that Capital Markets will spend $110 billion in IT in 2014, with insurance companies accounting for $100 billion in IT spending. By region, Asia/Pacific, Latin America, Middle East and Africa will see growth of overall financial services IT spending exceeding 7% while Europe and North America remain well below 5%, according to the report.
The figures are part of IDC Financial Insights' worldwide financial services spending forecasts over a five year period. Overall, worldwide IT spend is growing, with a 4.8% compound annual growth rate (CAGR) over the forecast period, which encompasses, 2012-2017.