IT spending among U.S and Canadian banks will increase 4.5% to $59.5 billion in 2014, Celent predicted in a new study released today. Much of that growth will be in retail banking, with banks focused on “the monetization of digital channels, enhancements to the user experience, and omnichannel sales and service endeavors,” according to the report, “IT Spending in Banking: North aMerican Perspective.”
Wholesale banks will also increase IT spending on upgrading legacy cash and treasury management solutions, the report added.
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“The good new is that new investment spending is skyrocketing and that maintenance allocations are on the decline,” Jacob Jegher, research director at Celent’s Banking Group and the report’s author, said in a statement. “It’s still quite challenging to get projects funded, however. Projects are encouraged but highly scrutinized, and they come with the requirement of a fast return on investment.”
The growth in spending is expected to continue in 2015, the report said, with an increase of 4.6% to $62.5 billion.