Management Strategies

09:05 AM
Connect Directly
Facebook
Twitter
Google+
RSS
E-Mail
50%
50%

Large Banks To Invest $73.8 Billion in IT Improvements in 2014: Report

According, to a survey from Technology Business Research, banks will invest more in transformative technology in 2013.

Large North American financial institutions will spend $73.8 billion on IT improvements as they continue to invest in transformative technologies, according to a new report from Technology Business Research. The report was based on surveys of IT and business executives at 201 North American financial organizations with more than $1 billion in total assets, as well as 35 financial technology vendors.

According to the firm, the overall 2014 IT budget growth rate in financial institutions hovers at 2%, and large banking organizations are increasing investment in multichannel banking and data management to improve system performance to ultimately meet customer demand for improved service and an enhanced user experience.

Along those lines, those polled expected to spend an average of $1.5 million next year on mobile and online banking projects and nearly $900,000 on self-service tech.

According to survey results, banks favor vendors established in the financial services industry and with which they have pre-existing relationships to implement the required improvements.

“IT is clearly becoming more strategic for financial services companies, helping them maintain the status quo and acting as an accelerator for strategic business shifts,” said TBR Senior Analyst Allan Krans. “Although budget increases are modest, we see strong commitment and funding for IT projects that positively impact the customer experience occurring during the next 18 months.”

Bryan Yurcan is associate editor for Bank Systems and Technology. He has worked in various editorial capacities for newspapers and magazines for the past 8 years. After beginning his career as a municipal and courts reporter for daily newspapers in upstate New York, Bryan has ... View Full Bio

Comment  | 
Print  | 
More Insights
Register for Bank Systems & Technology Newsletters
White Papers
Current Issue
Bank Systems & Technology Oct. 14, 2014
Bank Systems & Technology's new Must Reads is a compendium of our best recent coverage of customer analytics. Learn what big data means for banks, meet Wells Fargo CDO Charles Thomas, find out how to connect with your Gen Y customers, and more.
Slideshows
Video
Bank Systems & Technology Radio
Archived Audio Interviews
Join Bank Systems & Technology Associate Editor Bryan Yurcan, and guests Karen Massey and Jerry Silva from IDC Financial Insights, for a conversation about the firm's 11th annual FinTech rankings.